Latest Ratios: P/E Ratio 23.2x · EV/EBITDA 11.6x · ROE 23.7%. (2012–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.5B | $10.8B | $8.5B | $13.6B | $7.0B | $8.7B | $7.4B | $1.9B | $1.5B | $1.5B | $1.2B |
| Enterprise Value | $11.1B | $12.3B | $9.5B | $14.5B | $8.1B | $9.6B | $8.1B | $2.9B | $1.8B | $1.8B | $1.6B |
| P/E Ratio → | 23.23 | 25.21 | 18.86 | 26.70 | 13.85 | 37.72 | 39.92 | — | 19.09 | 23.55 | 37.12 |
| P/S Ratio | 2.92 | 3.53 | 2.93 | 4.73 | 2.29 | 3.13 | 3.73 | 1.12 | 1.07 | 1.10 | 0.97 |
| P/B Ratio | 4.99 | 5.50 | 5.19 | 10.63 | 7.05 | 7.84 | 6.96 | 2.39 | 2.97 | 3.43 | 3.56 |
| P/FCF | 17.98 | 18.90 | 23.05 | 25.48 | 12.97 | 68.86 | 19.81 | 7.88 | 13.71 | 15.29 | 23.01 |
| P/OCF | 11.63 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 11.65 | 13.66 | 11.27 | 16.33 | 9.42 | 17.34 | 16.43 | 97.14 | 8.92 | 11.16 | 11.03 |
| EV / EBIT | 16.16 | 18.72 | 13.91 | 19.17 | 11.19 | 23.02 | 23.15 | 16.97 | 13.78 | 19.75 | 19.93 |
| EV / FCF | — | 21.66 | 25.71 | 27.12 | 15.05 | 76.32 | 21.57 | 12.05 | 16.58 | 19.09 | 30.99 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.92 | 0.92 | 0.88 | 1.07 | 1.35 | 0.87 | 0.80 | 1.49 | 0.64 | 0.89 | 1.25 |
| Debt / EBITDA | 1.99 | 1.99 | 1.72 | 1.54 | 1.55 | 1.73 | 1.74 | 39.54 | 1.59 | 2.33 | 2.88 |
| Net Debt / Equity | — | 0.80 | 0.60 | 0.68 | 1.13 | 0.85 | 0.62 | 1.27 | 0.62 | 0.85 | 1.23 |
| Net Debt / EBITDA | 1.74 | 1.74 | 1.17 | 0.99 | 1.30 | 1.70 | 1.34 | 33.65 | 1.54 | 2.22 | 2.84 |
| Debt / FCF | — | 2.76 | 2.66 | 1.64 | 2.07 | 7.46 | 1.76 | 4.17 | 2.87 | 3.80 | 7.98 |
| Interest Coverage | 7.02 | 7.02 | 7.42 | 8.50 | 10.36 | 12.43 | 9.76 | 2.05 | 6.99 | 6.04 | 4.71 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 0.6% | 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% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 4.0% | 5.3% | 3.7% | 7.2% | 2.7% | 2.5% | — | 5.2% | 4.2% | 2.7% |
| FCF Yield | 5.6% | 5.3% | 4.3% | 3.9% | 7.7% | 1.5% | 5.0% | 12.7% | 7.3% | 6.5% | 4.3% |
| Buyback Yield | 1.0% | 0.9% | 0.8% | 1.5% | 8.2% | 3.4% | 0.0% | 0.0% | 0.0% | 0.5% | 0.0% |
| Total Shareholder Yield | 1.5% | 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 |
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Quick answers to the most common questions about buying WMS stock.
Advanced Drainage Systems, Inc.'s current P/E ratio is 23.2x. The historical average is 33.0x. This places it at the 27th percentile of its historical range.
Advanced Drainage Systems, Inc.'s current EV/EBITDA is 11.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.6x.
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%.
Based on historical data, Advanced Drainage Systems, Inc. is trading at a P/E of 23.2x. This is at the 27th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Advanced Drainage Systems, Inc.'s current dividend yield is 0.58% with a payout ratio of 13.2%.
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.
Advanced Drainage Systems, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Acquisition integration and leverage spike
Metrics are mathematically derived from official filings.
Margin Expansion Drives Profitability
Gross margin reached 40.8% in 2027Q1, up from 36.7% a year earlier, according to the latest quarterly filing, while operating margin expanded to 25.4%, reflecting strong pricing and cost controls.
The sequential improvement in gross margin from 32.4% in 2026Q4 to 40.8% in 2027Q1 suggests a rebound in pricing power and input cost management. Operating margin at 25.4% is near the highest in the reported period, indicating that the company is capturing operating leverage as revenue grows. However, the net margin of 16.8% in 2027Q1 is slightly below the 19.8% seen in 2025Q1, possibly due to higher interest expense or tax anomalies, which warrants monitoring.
ROIC Recovery After Acquisition Dip
ROIC improved to 7.3% in 2027Q1 from 3.2% in 2026Q4, as reported in the latest financials, but remains below the 7.8% peak in 2025Q1, indicating a gradual recovery post-acquisition.
The sharp decline in ROIC to 3.2% in 2026Q4 likely reflects the dilutive impact of the $972.5M acquisition, which expanded the capital base before earnings contribution. The subsequent recovery to 7.3% suggests that the acquired assets are beginning to generate returns, but the level is still below the pre-acquisition high. ROE of 16.4% in 2027Q1 is distorted by the equity base falling to $71.8M due to buybacks, so ROIC is a more reliable measure of underlying capital efficiency.
Working Capital Efficiency Improves
Cash conversion cycle improved to 81 days in 2027Q1 from 98 days in 2026Q4, driven by lower DIO and stable DSO, as per the latest balance sheet data, indicating better inventory management.
The reduction in DIO from 96 days to 84 days suggests that inventory is turning faster, possibly due to stronger demand or improved production planning. DSO remained stable at 39-42 days, indicating consistent collection practices. DPO has been declining from 52 days in 2024Q4 to 41 days in 2027Q1, which may reflect a shift in supplier terms or payment timing, but the overall CCC improvement is a positive sign for working capital efficiency.
Leverage Spike Distorts Debt Metrics
Debt-to-equity surged to 17.92 in 2027Q1 from 0.92 in 2026Q4, as reported in the balance sheet, but this is largely due to equity falling to $71.8M from buybacks, not a debt increase.
Total debt remained around $1.8B, so the dramatic rise in D/E is a mathematical artifact of the equity base being reduced by aggressive share repurchases. D/EBITDA of 5.56 in 2027Q1 is more meaningful and shows a moderate leverage level, though it is elevated compared to the 5.13 in 2025Q1. Interest coverage of 9.47x in 2027Q1 is comfortable, but investors should monitor whether the company maintains this coverage as interest rates fluctuate.
Liquidity Remains Adequate Despite Cash Drawdown
Current ratio stood at 2.12 in 2027Q1, down from 2.96 in 2024Q4, while cash fell to $162.3M from $490.2M, according to recent filings, but quick ratio of 1.18 indicates sufficient short-term coverage.
The decline in cash is largely due to the acquisition and buybacks, but the current ratio remains above 2, suggesting that current assets comfortably cover current liabilities. The quick ratio of 1.18, excluding inventory, still indicates that the company can meet near-term obligations without relying on inventory sales. However, the reliance on inventory (DIO of 84 days) means that a sudden demand shock could strain liquidity, so the company's ability to convert inventory to cash is a key risk.
Misapplied D/E Ratio Obscures True Leverage
The debt-to-equity ratio of 17.92 in 2027Q1 is often misapplied to WMS, as it is distorted by a $71.8M equity base from buybacks, per the balance sheet, and does not reflect actual debt burden.
Analysts should use D/EBITDA or net debt/EBITDA instead, as these metrics are less sensitive to equity fluctuations. WMS's D/EBITDA of 5.56 is more representative of its leverage, and while it is higher than peers like NVR (0.31) and TREX (0.22), it is manageable given the company's strong cash flow generation. The equity base is artificially low due to aggressive buybacks, so any ratio using equity as the denominator will be misleading. Investors should focus on cash flow-based leverage metrics to assess refinancing risk.