Advanced Drainage Systems, Inc. (WMS) Financial Ratios
15 years of historical data (2012–2026) · Industrials · Construction
EV/EBITDA
↓
14.23
+5% vs avg
5yr avg: 13.61
30Y Low8.9·High18.9
P/FCF
↓
19.79
↓-34% vs avg
5yr avg: 29.85
30Y Low7.9·High68.9
P/B Ratio
↓
5.90
↓-19% vs avg
5yr avg: 7.24
30Y Low2.4·High10.6
ROE
↓
23.7%
↑-31% vs avg
5yr avg: 34.6%
30Y Low-30%·High48%
Debt/EBITDA
↑
1.97
+16% vs avg
5yr avg: 1.70
30Y Low1.5·High4.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WMS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Advanced Drainage Systems, Inc. trades at 27.0x earnings, 11% above its 5-year average of 24.5x, sitting at the 55th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 6%. On a free-cash-flow basis, the stock trades at 19.8x P/FCF, 34% below the 5-year average of 29.9x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.3B | $10.8B | $8.5B | $13.6B | $7.0B | $8.7B | $7.4B | $1.9B | $1.5B | $1.5B | $1.2B |
| Enterprise Value | $12.8B | $12.3B | $9.5B | $14.5B | $8.1B | $9.6B | $8.1B | $2.9B | $1.8B | $1.8B | $1.6B |
| P/E Ratio → | 27.04 | 25.21 | 18.86 | 26.70 | 13.85 | 37.72 | 39.92 | — | 19.09 | 23.55 | 37.12 |
| P/S Ratio | 3.69 | 3.53 | 2.93 | 4.73 | 2.29 | 3.13 | 3.73 | 1.12 | 1.07 | 1.10 | 0.97 |
| P/B Ratio | 5.90 | 5.50 | 5.19 | 10.63 | 7.05 | 7.84 | 6.96 | 2.39 | 2.97 | 3.43 | 3.56 |
| P/FCF | 19.79 | 18.90 | 23.05 | 25.48 | 12.97 | 68.86 | 19.81 | 7.88 | 13.71 | 15.29 | 23.01 |
| P/OCF | 13.76 | 13.14 | 14.61 | 18.96 | 9.91 | 31.51 | 16.36 | 6.14 | 9.79 | 10.64 | 11.69 |
P/E links to full P/E history page with 30-year chart
WMS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Advanced Drainage Systems, Inc.'s enterprise value stands at 14.2x EBITDA, roughly in line with its 5-year average of 13.6x. This is roughly in line with the Industrials sector median of 13.8x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.04 | 3.26 | 5.04 | 2.65 | 3.47 | 4.06 | 1.72 | 1.30 | 1.37 | 1.30 |
| EV / EBITDA | 14.23 | 13.67 | 11.27 | 16.33 | 9.42 | 17.34 | 16.43 | 168.36 | 8.92 | 11.16 | 11.03 |
| EV / EBIT | 18.67 | 17.93 | 13.91 | 19.17 | 11.19 | 23.02 | 23.15 | 16.97 | 13.78 | 19.75 | 19.93 |
| EV / FCF | — | 21.63 | 25.71 | 27.12 | 15.05 | 76.32 | 21.57 | 12.05 | 16.58 | 19.09 | 30.99 |
WMS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Advanced Drainage Systems, Inc. earns an operating margin of 22.5%, significantly above the Industrials sector average of 4.3%. Operating margins have compressed from 25.5% to 22.5% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 23.7% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 16.8% represents solid returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.3% | 36.3% | 37.7% | 39.9% | 36.4% | 28.9% | 34.8% | 29.7% | 23.6% | 22.7% | 23.5% |
| Operating Margin | 22.5% | 22.5% | 22.6% | 25.5% | 23.4% | 14.9% | 17.4% | -5.7% | 9.3% | 6.6% | 6.1% |
| Net Profit Margin | 14.0% | 14.0% | 15.5% | 17.7% | 16.5% | 9.8% | 11.3% | -11.5% | 5.6% | 4.7% | 2.6% |
Return on Capital
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.7% | 23.7% | 30.9% | 44.8% | 48.3% | 25.0% | 24.3% | -30.1% | 16.8% | 16.2% | 10.1% |
| ROA | 10.4% | 10.4% | 12.9% | 16.5% | 18.3% | 10.7% | 9.4% | -11.3% | 7.5% | 5.9% | 3.2% |
| ROIC | 16.8% | 16.8% | 20.7% | 25.7% | 25.9% | 16.4% | 14.8% | -5.5% | 12.1% | 8.5% | 7.7% |
| ROCE | 18.8% | 18.8% | 21.5% | 27.4% | 30.1% | 18.9% | 16.3% | -6.4% | 15.6% | 10.9% | 9.6% |
WMS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Advanced Drainage Systems, Inc. carries a Debt/EBITDA ratio of 2.0x, which is manageable (39% below the sector average of 3.2x). Net debt stands at $1.5B ($1.8B total debt minus $223M cash). Interest coverage of 7.3x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.91 | 0.91 | 0.88 | 1.07 | 1.35 | 0.87 | 0.80 | 1.49 | 0.64 | 0.89 | 1.25 |
| Debt / EBITDA | 1.97 | 1.97 | 1.72 | 1.54 | 1.55 | 1.73 | 1.74 | 68.52 | 1.59 | 2.33 | 2.88 |
| Net Debt / Equity | — | 0.79 | 0.60 | 0.68 | 1.13 | 0.85 | 0.62 | 1.27 | 0.62 | 0.85 | 1.23 |
| Net Debt / EBITDA | 1.72 | 1.72 | 1.17 | 0.99 | 1.30 | 1.70 | 1.34 | 58.32 | 1.54 | 2.22 | 2.84 |
| Debt / FCF | — | 2.72 | 2.66 | 1.64 | 2.07 | 7.46 | 1.76 | 4.17 | 2.87 | 3.80 | 7.98 |
| Interest Coverage | 7.32 | 7.32 | 7.42 | 8.50 | 10.36 | 12.43 | 9.76 | 2.05 | 6.99 | 6.04 | 4.71 |
WMS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Advanced Drainage Systems, Inc.'s current ratio of 2.42x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.35x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 2.96x to 2.42x over the past 3 years.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.42 | 2.42 | 3.33 | 2.96 | 2.69 | 2.23 | 2.33 | 2.80 | 2.26 | 2.07 | 1.72 |
| Quick Ratio | 1.35 | 1.35 | 2.10 | 1.90 | 1.46 | 0.97 | 1.39 | 1.61 | 0.98 | 0.88 | 0.71 |
| Cash Ratio | 0.44 | 0.44 | 1.16 | 1.11 | 0.57 | 0.05 | 0.61 | 0.73 | 0.04 | 0.08 | 0.03 |
| Asset Turnover | — | 0.68 | 0.79 | 0.88 | 1.06 | 1.05 | 0.82 | 0.71 | 1.33 | 1.28 | 1.20 |
| Inventory Turnover | 3.58 | 3.58 | 3.71 | 3.72 | 4.21 | 3.98 | 4.30 | 4.17 | 4.00 | 3.90 | 3.72 |
| Days Sales Outstanding | — | 46.73 | 41.88 | 41.09 | 36.48 | 45.04 | 43.48 | 43.62 | 49.29 | 47.18 | 49.05 |
WMS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Advanced Drainage Systems, Inc. returns 1.3% to shareholders annually — split between a 0.5% dividend yield and 0.8% buyback yield. The payout ratio of 13.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.5% | 0.6% | 0.3% | 0.6% | 0.4% | 0.4% | 4.9% | 1.8% | 1.3% | 1.4% |
| Payout Ratio | 13.2% | 13.2% | 11.0% | 8.6% | 7.8% | 13.6% | 13.7% | — | 33.6% | 29.8% | 51.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 4.0% | 5.3% | 3.7% | 7.2% | 2.7% | 2.5% | — | 5.2% | 4.2% | 2.7% |
| FCF Yield | 5.1% | 5.3% | 4.3% | 3.9% | 7.7% | 1.5% | 5.0% | 12.7% | 7.3% | 6.5% | 4.3% |
| Buyback Yield | 0.8% | 0.9% | 0.8% | 1.5% | 8.2% | 3.4% | 0.0% | 0.0% | 0.0% | 0.5% | 0.0% |
| Total Shareholder Yield | 1.3% | 1.4% | 1.4% | 1.8% | 8.8% | 3.8% | 0.4% | 4.9% | 1.8% | 1.8% | 1.4% |
| Shares Outstanding | — | $78M | $78M | $79M | $83M | $73M | $72M | $64M | $58M | $56M | $56M |
Peer Comparison
Compare WMS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WMSYou | $11B | 27.0 | 14.2 | 19.8 | 36.3% | 22.5% | 23.7% | 16.8% | 2.0 |
 NVR | $18B | 14.9 | 9.6 | 16.4 | 23.0% | 16.2% | 33.2% | 43.8% | 0.7 |
 AAON | $11B | 106.0 | 50.2 | — | 26.7% | 10.6% | 12.5% | 9.8% | 1.9 |
 FBIN | $5B | 17.2 | 9.0 | 13.8 | 44.6% | 13.9% | 12.4% | 9.8% | 3.1 |
 TREX | $5B | 26.5 | 16.0 | 36.4 | 39.2% | 22.0% | 20.2% | 16.4% | 0.7 |
 PNR | $12B | 18.8 | 13.9 | 16.1 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
 NWPX | $1B | 39.1 | 20.5 | 28.5 | 19.7% | 9.7% | 9.2% | 7.6% | 1.5 |
 MYRG | $7B | 61.2 | 31.1 | 30.9 | 11.5% | 4.4% | 18.8% | 18.3% | 0.5 |
 LYB | $19B | -25.6 | 30.0 | 50.4 | 9.0% | -1.1% | -6.5% | -1.1% | 15.0 |
 WLK | $10B | -6.8 | — | — | 2.6% | -14.1% | -14.8% | -9.0% | — |
 OLN | $3B | -59.5 | 9.0 | 10.1 | 7.4% | 1.7% | -2.1% | 1.7% | 5.3 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 15 years · Updated daily
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WMS — Frequently Asked Questions
Quick answers to the most common questions about buying WMS stock.
What is Advanced Drainage Systems, Inc.'s P/E ratio?
Advanced Drainage Systems, Inc.'s current P/E ratio is 27.0x. The historical average is 33.0x. This places it at the 55th percentile of its historical range.
What is Advanced Drainage Systems, Inc.'s EV/EBITDA?
Advanced Drainage Systems, Inc.'s current EV/EBITDA is 14.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.6x.
What is Advanced Drainage Systems, Inc.'s ROE?
Advanced Drainage Systems, Inc.'s return on equity (ROE) is 23.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.8%.
Is WMS stock overvalued?
Based on historical data, Advanced Drainage Systems, Inc. is trading at a P/E of 27.0x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Advanced Drainage Systems, Inc.'s dividend yield?
Advanced Drainage Systems, Inc.'s current dividend yield is 0.49% with a payout ratio of 13.2%.
What are Advanced Drainage Systems, Inc.'s profit margins?
Advanced Drainage Systems, Inc. has 36.3% gross margin and 22.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Advanced Drainage Systems, Inc. have?
Advanced Drainage Systems, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.