WMS Industrials

Advanced Drainage Systems, Inc.

$136.00-2.15%

Price as of close on Nov 3, 2026 · Financials updated Oct 1, 2026

Basics

Sector: Industrials
Industry: Building Products & Equipment
Country: United States
Market cap: 10.3B USD
Enterprise value: 11.1B USD
Full-time employees: 6,425

Overall health

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.28 vs a peer median of 0.64) and more debt relative to equity (0.90× vs a peer median of 0.40×)higher risk: bigger price swings (beta 1.28 vs peers 0.64) and more debt vs equity (0.90× vs peers 0.40×)
About average: growth and valuation

Ranks #859 of 2,308 industrials companies (top 38%)

See how it ranks against its peers

Worth knowing

Investment surge. Capital spending 8.2% of revenue, up from 5.4% in FY Mar 2023.
Advanced Drainage Systems is spending 8.2% of revenue on facilities and equipment, up from 5.4% in FY Mar 2023. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.
Profit is backed by cash. Free cash flow is 121% of reported profit.
Advanced Drainage Systems's free cash flow is 121% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 21% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 21% vs peers 7.7%.
Advanced Drainage Systems keeps 21% of revenue as operating profit, more than 89% of peers (median 7.7%).
More volatile share price. Beta 1.28: tends to move more than the market.
Advanced Drainage Systems's shares have swung more with the market than most peers' (beta 1.28, above the market's 1.0).

StockQuotient Score

57/ 100

Oct 5 58 → Nov 4 57 (-1)

Valuation

Is the price right?

55/100

Moderate▼ 2 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 57 → 55

Share price +3.9%-2

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Helped by:

▲ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.4%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.22Sector median: 0.0377 · MAD: 0.0294

EBITDA yield7.7%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score 0.17Sector median: 0.0695 · MAD: 0.0425

Free cash flow yield5.4%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.45Sector median: 0.0370 · MAD: 0.0370

Other data (not scored)

Book yield17.5%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5027 · MAD: 0.2823

Growth

Is it growing?

55/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 5.6%

Why

Helped by:

▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth7.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.01Sector median: 0.0709 · MAD: 0.2481

3-year revenue growth3.2%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.17Sector median: 0.0421 · MAD: 0.0625

Revenue growth10.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.78Sector median: 0.0439 · MAD: 0.0766

Profitability

Does it earn well?

91/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ Operating margin
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin20.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.56Sector median: 0.0773 · MAD: 0.0507

Return on assets10.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.89Sector median: 0.0311 · MAD: 0.0241

Return on invested capital16.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.64Sector median: 0.0715 · MAD: 0.0558

Other data (not scored)

Gross margin38.6%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.2573 · MAD: 0.1038

Return on equity25.3%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0802 · MAD: 0.0639

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Beta
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.28

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -2.31Sector median: 0.6440 · MAD: 0.2745

Current ratio2.12×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.93Sector median: 1.6180 · MAD: 0.5360

Debt / equity0.90×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.47Sector median: 0.4019 · MAD: 0.3378

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Advanced Drainage Systems

Is Advanced Drainage Systems getting weaker?: Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is unchanged at 57/100 since Oct 28, 2026.
How is Advanced Drainage Systems valued vs its peers?: Priced about in line with its peers. Valuation scores 55/100 against 2,459 industrials peers. Free cash flow yield 5.4% vs a peer median of 3.7% (stronger than 64% of peers).Free cash flow yield 5.4% vs peers 3.7% (stronger than 64% of peers).
Is Advanced Drainage Systems growing?: At about the same pace as its peers. Growth scores 55/100 against 2,459 industrials peers. Revenue growth 10.4% vs a peer median of 4.4% (stronger than 71% of peers).Revenue growth 10.4% vs peers 4.4% (stronger than 71% of peers).
How profitable is Advanced Drainage Systems?: More profitable than most of its peers. Profitability scores 91/100 against 2,459 industrials peers. Return on assets 10.1% vs a peer median of 3.1% (stronger than 93% of peers).Return on assets 10.1% vs peers 3.1% (stronger than 93% of peers).
How risky is Advanced Drainage Systems?: Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Current ratio 2.12× vs a peer median of 1.62× (stronger than 68% of peers).Current ratio 2.12× vs peers 1.62× (stronger than 68% of peers). Beta 1.28 vs a peer median of 0.64 (weaker than 87% of peers).Beta 1.28 vs peers 0.64 (weaker than 87% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	3.1B USD	3.2B USD	+5.6%
Net income (12 months)	429.0M USD	453.6M USD	+5.7%
Operating margin	20.3%	20.7%	+0.4 pts
Free cash flow (12 months)	569.3M USD	550.2M USD	−3.4%
Debt	1.6B USD	1.6B USD	−1.1%
Cash	223.0M USD	162.3M USD	−27.2%
Shares outstanding	76.6M	75.4M	−1.6%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Building Products & Equipment · 19 companies

Valuations in Building Products & Equipment are above their usual range since Nov 2016.

79% of months since Nov 2016 were valued lower than now.
25% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −19% and earnings −9% (medians): prices and earnings moved broadly together.
Median price-to-sales is −9% vs the whole market, against a usual −30%.

Nov 2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Mar 2022	FY Mar 2023	FY Mar 2024	FY Mar 2025	FY Mar 2026	Change
Gross margin	28.9%	36.4%	39.9%	37.7%	38.3%	▲ 0.6 pts
Operating margin	14.9%	23.4%	25.5%	22.6%	20.3%	▼ 2.3 pts
Net margin	9.8%	16.5%	17.7%	15.5%	14.0%	▼ 1.5 pts
Return on assets (ROA)	10.2%	17.5%	15.6%	12.2%	9.5%	▼ 2.7 pts
Return on equity (ROE)	30.4%	61.5%	44.2%	29.5%	22.9%	▼ 6.6 pts
Free cash flow margin	4.5%	17.6%	18.6%	12.7%	18.7%	▲ 6.0 pts
Current ratio	2.23×	2.69×	2.96×	3.33×	2.42×	▼ 27%
Quick ratio	0.97×	1.46×	1.90×	2.10×	1.35×	▼ 36%
Debt to equity	1.04×	1.57×	1.11×	0.83×	0.88×	▲ 5.4%

WMS price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.28 vs a peer median of 0.64) and more debt relative to equity (0.90× vs a peer median of 0.40×)higher risk: bigger price swings (beta 1.28 vs peers 0.64) and more debt vs equity (0.90× vs peers 0.40×)

About average: growth and valuation

Ranks #859 of 2,308 industrials companies (top 38%)

See how it ranks against its peers

Worth knowing

Investment surge. Capital spending 8.2% of revenue, up from 5.4% in FY Mar 2023.

Advanced Drainage Systems is spending 8.2% of revenue on facilities and equipment, up from 5.4% in FY Mar 2023. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.

Profit is backed by cash. Free cash flow is 121% of reported profit.

Advanced Drainage Systems's free cash flow is 121% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 21% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 21% vs peers 7.7%.

Advanced Drainage Systems keeps 21% of revenue as operating profit, more than 89% of peers (median 7.7%).

More volatile share price. Beta 1.28: tends to move more than the market.

Advanced Drainage Systems's shares have swung more with the market than most peers' (beta 1.28, above the market's 1.0).

Questions investors ask about Advanced Drainage Systems

Is Advanced Drainage Systems getting weaker?

Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is unchanged at 57/100 since Oct 28, 2026.

How is Advanced Drainage Systems valued vs its peers?

Priced about in line with its peers. Valuation scores 55/100 against 2,459 industrials peers. Free cash flow yield 5.4% vs a peer median of 3.7% (stronger than 64% of peers).Free cash flow yield 5.4% vs peers 3.7% (stronger than 64% of peers).

Is Advanced Drainage Systems growing?

At about the same pace as its peers. Growth scores 55/100 against 2,459 industrials peers. Revenue growth 10.4% vs a peer median of 4.4% (stronger than 71% of peers).Revenue growth 10.4% vs peers 4.4% (stronger than 71% of peers).

How profitable is Advanced Drainage Systems?

More profitable than most of its peers. Profitability scores 91/100 against 2,459 industrials peers. Return on assets 10.1% vs a peer median of 3.1% (stronger than 93% of peers).Return on assets 10.1% vs peers 3.1% (stronger than 93% of peers).

How risky is Advanced Drainage Systems?

Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Current ratio 2.12× vs a peer median of 1.62× (stronger than 68% of peers).Current ratio 2.12× vs peers 1.62× (stronger than 68% of peers). Beta 1.28 vs a peer median of 0.64 (weaker than 87% of peers).Beta 1.28 vs peers 0.64 (weaker than 87% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

3.1B USD

3.2B USD

+5.6%

Net income (12 months)

429.0M USD

453.6M USD

+5.7%

Operating margin

20.3%

20.7%

+0.4 pts

Free cash flow (12 months)

569.3M USD

550.2M USD

−3.4%

Debt

1.6B USD

1.6B USD

−1.1%

Cash

223.0M USD

162.3M USD

−27.2%

Shares outstanding

76.6M

75.4M

−1.6%

Key ratios

FY Mar 2022

FY Mar 2023

FY Mar 2024

FY Mar 2025

FY Mar 2026

Change

Gross margin

28.9%

36.4%

39.9%

37.7%

38.3%

▲ 0.6 pts

Operating margin

14.9%

23.4%

25.5%

22.6%

20.3%

▼ 2.3 pts

Net margin

9.8%

16.5%

17.7%

15.5%

14.0%

▼ 1.5 pts

Return on assets (ROA)

10.2%

17.5%

15.6%

12.2%

9.5%

▼ 2.7 pts

Return on equity (ROE)

30.4%

61.5%

44.2%

29.5%

22.9%

▼ 6.6 pts

Free cash flow margin

4.5%

17.6%

18.6%

12.7%

18.7%

▲ 6.0 pts

Current ratio

2.23×

2.69×

2.96×

3.33×

2.42×

▼ 27%

Quick ratio

0.97×

1.46×

1.90×

2.10×

1.35×

▼ 36%

Debt to equity

1.04×

1.57×

1.11×

0.83×

0.88×

▲ 5.4%