Business Description
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aeration wastewater solutions, septic tanks and accessories, and combined treatment and dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 38 distribution centers. The company was incorporated in 1966 and is headquartered in Hilliard, Ohio.
Business History
Generated: Jun 7, 2026 3:23pmPrice Overview
Last updated: Jun 7, 2026 3:21pm (5d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 5.48
Total Equity: $1.93B
Shares: 78,482,000
Total Debt: $1.65B
Cash: $223.01M
EBITDA: $900.54M
Total Debt: $1.65B
Cash: $223.01M
Revenue: $3.05B
Revenue: $3.05B
Revenue: $3.05B
Total Equity: $1.93B
Tax Rate: 23.9%
Equity: $1.93B
Total Debt: $1.65B
Cash: $223.01M
Current Liabilities: $509.47M
Long-Term Debt: $1.61B
Total Debt: $1.65B
Total Equity: $1.93B
Shares: 78,482,000
Shares: 78,482,000
CapEx: -$249.77M
Shares: 78,482,000
Stock Price: $130.15
Net Income: $426.47M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 3:25pm (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue | $2.8B | $3.1B | $2.9B | $2.9B | $3.1B |
| Cost of Revenue | $2.0B | $2.0B | $1.7B | $1.8B | $1.9B |
| Gross Profit | $800.4M | $1.1B | $1.1B | $1.1B | $1.1B |
| Operating Expenses | $388.5M | $399.1M | $413.8M | $436.8M | $420.8M |
| Operating Income | $411.9M | $719.3M | $732.1M | $657.4M | $686.7M |
| Net Income | $271.3M | $507.1M | $509.9M | $450.2M | $426.5M |
| EBITDA | $558.9M | $872.4M | $910.5M | $864.5M | $900.5M |
| EPS | $3.22 | $6.16 | $6.52 | $5.81 | $5.48 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 3:23pm (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Cash & Equivalents | $20.1M | $217.1M | $490.2M | $463.3M | $223.0M |
| Total Current Assets | $871.9M | $1.0B | $1.3B | $1.3B | $1.2B |
| Total Assets | $2.6B | $2.9B | $3.3B | $3.7B | $4.5B |
| Current Liabilities | $391.2M | $378.8M | $439.6M | $398.4M | $509.5M |
| Long-Term Debt | $908.7M | $1.3B | $1.3B | $1.3B | $1.6B |
| Total Liabilities | $1.5B | $1.9B | $2.0B | $2.1B | $2.5B |
| Total Equity | $1.1B | $977.4M | $1.3B | $1.6B | $1.9B |
| Retained Earnings | $158.9M | $626.2M | $1.1B | $1.5B | $1.9B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 3:25pm (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Operating Cash Flow | $274.9M | $707.8M | $717.9M | $581.5M | $819.1M |
| Capital Expenditure | -$149.1M | -$166.9M | -$183.8M | -$212.9M | -$249.8M |
| Free Cash Flow | $125.8M | $540.9M | $534.1M | $368.5M | $569.3M |
| Acquisitions (net) | -$49.3M | -$48.0M | $0 | -$237.3M | -$991.1M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$292.0M | -$575.0M | -$207.3M | -$69.9M | -$92.0M |
| Net Change in Cash | -$174.9M | $197.0M | $278.7M | -$26.6M | -$235.3M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 3:21pm (5d ago)| Metric | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| Revenue |
$3.0B $3.0B – $3.0B
|
$3.5B $3.4B – $3.5B
|
$3.7B $3.6B – $3.7B
|
$3.9B $3.9B – $3.9B
|
| EBITDA |
$1.2B $1.1B – $1.2B
|
$1.3B $1.3B – $1.3B
|
$1.4B $1.4B – $1.4B
|
$1.5B $1.5B – $1.5B
|
| Net Income |
$476.7M $474.7M – $478.6M
|
$493.0M $491.2M – $494.9M
|
$576.1M $571.6M – $580.7M
|
$697.5M $688.7M – $706.3M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 3:25pm (5d ago)| Metric | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|
| Revenue Growth | +10.9% | -6.4% | +1.0% | +5.0% |
| Gross Profit Growth | +39.7% | +2.5% | -4.5% | +1.2% |
| Operating Income Growth | +74.6% | +1.8% | -10.2% | +4.5% |
| Net Income Growth | +86.9% | +0.6% | -11.7% | -5.3% |
| EBITDA Growth | +56.1% | +4.4% | -5.0% | +4.2% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 3:23pm (5d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-26 | TAYLOR CRAIG J. | A-Award | 1,530.00 | $0.00 | $0 |
| 2026-05-26 | TAYLOR CRAIG J. | A-Award | 3,406.00 | $138.09 | $470,335 |
| 2026-05-26 | Martz Bret | A-Award | 1,252.00 | $0.00 | $0 |
| 2026-05-26 | Martz Bret | A-Award | 2,787.00 | $138.09 | $384,857 |
| 2026-05-26 | TALLEY KEVIN C | A-Award | 1,217.00 | $0.00 | $0 |
| 2026-05-26 | TALLEY KEVIN C | A-Award | 2,709.00 | $138.09 | $374,086 |
| 2026-05-26 | Cottrill Scott A | A-Award | 2,503.00 | $0.00 | $0 |
| 2026-05-26 | Cottrill Scott A | A-Award | 5,573.00 | $138.09 | $769,576 |
| 2026-05-26 | BARBOUR D. SCOTT | A-Award | 9,036.00 | $0.00 | $0 |
| 2026-05-26 | BARBOUR D. SCOTT | A-Award | 20,124.00 | $138.09 | $2.8M |
| 2026-05-26 | Coyle Patrick M. Jr | A-Award | 1,252.00 | $0.00 | $0 |
| 2026-05-26 | Coyle Patrick M. Jr | A-Award | 2,787.00 | $138.09 | $384,857 |
| 2026-05-26 | MAKOWSKI TIM A | A-Award | 847.00 | $0.00 | $0 |
| 2026-05-26 | MAKOWSKI TIM A | A-Award | 1,886.00 | $138.09 | $260,438 |
| 2026-05-26 | KING BRIAN W. | A-Award | 950.00 | $0.00 | $0 |
| 2026-05-26 | KING BRIAN W. | A-Award | 2,115.00 | $138.09 | $292,060 |
| 2026-05-22 | BARBOUR D. SCOTT | F-InKind | 1,898.00 | $133.00 | $252,434 |
| 2026-05-22 | TAYLOR CRAIG J. | F-InKind | 152.00 | $133.00 | $20,216 |
| 2026-05-22 | TALLEY KEVIN C | F-InKind | 324.00 | $133.00 | $43,092 |
| 2026-05-22 | MAKOWSKI TIM A | F-InKind | 129.00 | $133.00 | $17,157 |
Dividend History (Last 20)
Last updated: Jun 7, 2026 3:21pm (5d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-06-01 | $0.20 | 2026-05-21 | 2026-06-01 | 2026-06-15 |
| 2026-03-02 | $0.18 | 2026-02-05 | 2026-03-02 | 2026-03-16 |
| 2025-12-01 | $0.18 | 2025-11-06 | 2025-12-01 | 2025-12-15 |
| 2025-08-29 | $0.18 | 2025-08-07 | 2025-08-29 | 2025-09-15 |
| 2025-05-30 | $0.18 | 2025-05-15 | 2025-05-30 | 2025-06-16 |
| 2025-02-28 | $0.16 | 2025-02-06 | 2025-02-28 | 2025-03-14 |
| 2024-12-02 | $0.16 | 2024-11-08 | 2024-12-02 | 2024-12-16 |
| 2024-08-30 | $0.16 | 2024-08-08 | 2024-08-30 | 2024-09-13 |
| 2024-05-31 | $0.16 | 2024-05-16 | 2024-05-31 | 2024-06-14 |
| 2024-02-29 | $0.14 | 2024-02-08 | 2024-03-01 | 2024-03-15 |
| 2023-11-30 | $0.14 | 2023-11-02 | 2023-12-01 | 2023-12-15 |
| 2023-08-31 | $0.14 | 2023-08-03 | 2023-09-01 | 2023-09-15 |
| 2023-05-31 | $0.14 | 2023-05-18 | 2023-06-01 | 2023-06-15 |
| 2023-02-28 | $0.12 | 2023-02-02 | 2023-03-01 | 2023-03-15 |
| 2022-11-30 | $0.12 | 2022-11-03 | 2022-12-01 | 2022-12-15 |
| 2022-08-31 | $0.12 | 2022-08-04 | 2022-09-01 | 2022-09-15 |
| 2022-05-31 | $0.12 | 2022-05-19 | 2022-06-01 | 2022-06-15 |
| 2022-02-28 | $0.11 | 2022-02-03 | 2022-03-01 | 2022-03-15 |
| 2021-11-30 | $0.11 | 2021-11-04 | 2021-12-01 | 2021-12-15 |
| 2021-08-31 | $0.11 | 2021-08-05 | 2021-09-01 | 2021-09-15 |
Narrative Economics
Advanced Analysis Forensic deep-dive · two lenses
The two lenses are doing exactly what they're supposed to: Lens 1 at +58 tells me WMS is a genuinely high-margin, cash-generative industrial with clean accounting and disciplined share count — the kind of name I want to own. Lens 2 at -79 tells me the market already knows that and then some, with composite FV near $85 and only a backward-looking anchored-PE method defending $130 while EPS has actually rolled from the FY24 peak. That's the textbook trap: paying peak multiples on post-peak earnings into what looks like a cyclical softening, with $1.4B net debt removing the cushion. So I'm not buying here. Pass at $130.
The play: build the watchlist entry, not the position. I want a starter (~1% of book) in the $100-105 zone, which is where quality-adjusted fair value lives and where the risk/reward finally tilts. I scale to a full ~3% position in the $85-90 range — composite FV with a real margin of safety. Catalysts that pull me in earlier: a clear print showing margin stabilization at 22%+ with infrastructure backlog reaccelerating, or a broad construction-cycle washout that takes the stock there on multiple compression rather than fundamental break. What keeps me sidelined or shrinks my appetite: another quarter of operating margin slippage below 22%, or any sign the FY24 earnings peak is structural rather than cyclical. Today this is a price problem, not a business problem — and price problems get solved by waiting.
WMS has transformed from a ~29% gross margin business in FY2022 to a ~36-40% gross margin operation since FY2023, with operating margins running 22-25% — exceptional for a construction-materials manufacturer. FY2026 revenue of $3.05B with $569M FCF (18.7% FCF margin) and $426M net income demonstrates real operating leverage and strong cash conversion (OCF/NI 1.41x, accruals -5.1% of assets). Earnings quality checks are clean across the board: Beneish M of -2.64, Altman Z of 4.3, and no accrual flags.
The primary structural concern is leverage: net debt of ~$1.43B against only $223M liquid cash means the balance sheet is a constraint rather than a cushion, though $569M of annual FCF easily services it. Capital allocation is disciplined — diluted share CAGR of 1.9%, SBC only 1.1% of revenue, and buybacks running 5.6x SBC, meaning per-share value is being protected and modestly enhanced. Revenue has been choppy ($3.07B → $2.87B → $2.90B → $3.05B), suggesting cyclicality tied to construction end-markets, and net income peaked in FY2024 at $510M and has drifted down to $426M despite revenue recovery — margin compression worth watching.
Insider activity flagged as 'unusual selling' is misread by the module: the recent tape shows only A-Awards (grants) and implied tax-withholding events, not open-market P/S sales. No directional insider buying or selling appears in the visible window, so this is a non-signal.
Verify before trusting this (6)
- Composition and maturity schedule of the $1.4B+ debt — fixed vs floating, covenants, refinancing windows
- Whether the FY24→FY26 margin compression reflects raw material/resin costs, pricing competition, or mix shift
- Customer/end-market concentration — residential vs non-res vs infrastructure exposure
- Allied Products / Infiltrator segment growth contribution to the gross margin step-up
- Whether the 'S' (open-market sale) transactions exist outside the 15-row window cited by the insider module
- Capex intensity and maintenance vs growth split underlying the $569M FCF figure
The e2e composite fair value of $88.09 (signal-adjusted $84.17) implies ~35% downside from $130.15. The methods triangulate reasonably tightly on the conservative side — DCF $75, EPV floor $61, with only the anchored-PE method ($141) supporting today's price, and that one is essentially extrapolating peak FY24 multiples onto rolled-over earnings. I take the cash-flow-based methods more seriously here because earnings quality is high (no haircut needed) but earnings have actually declined from peak, so paying a peak multiple on post-peak EPS is exactly the trap.
Adjusting upward for genuine business quality (Strong, score 58 — high margins, clean cash, disciplined share count) I'd push deserved value toward the upper end of the FV range, call it ~$95-105, but $1.4B net debt keeps me from going further. Even being generous, $130 is 25-35% above what the business deserves on a normalized basis. The bull case requires the platform-monopoly narrative plus a sustained housing/infrastructure upcycle to be only partially priced in — but earnings rolling from the FY24 peak suggests the cycle is already turning, not inflecting up. This isn't a screaming short; it's a quality business at a full-to-rich price where the margin of safety has been spent.
Verify before trusting this (5)
- FY25 revenue and EBITDA guidance vs FY24 peak — is the rollover stabilizing or accelerating?
- Infrastructure/non-residential mix and backlog commentary in the latest transcript
- Pricing actions and raw material (resin) trends affecting gross margin trajectory
- Capex plans and incremental capacity — signals management's own cycle read
- Buyback pace at current levels — are they buying their own stock at these multiples?