Advanced Drainage Systems, Inc. (WMS) Financial Ratios
14 years of historical data (2012–2025) · Industrials · Construction
EV/EBITDA
↓
16.20
+14% vs avg
5yr avg: 14.16
30Y Low8.9·High18.9
P/FCF
↑
34.30
+14% vs avg
5yr avg: 30.04
30Y Low7.9·High68.9
P/B Ratio
↓
7.11
-6% vs avg
5yr avg: 7.53
30Y Low2.4·High10.6
ROE
↑
30.9%
-11% vs avg
5yr avg: 34.7%
30Y Low-30%·High48%
Debt/EBITDA
↓
1.72
+4% vs avg
5yr avg: 1.66
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 25.8x earnings, 6% below its 5-year average of 27.4x, sitting at the 40th percentile of its historical range. This is roughly in line with the Industrials sector median P/E of 25.9x. On a free-cash-flow basis, the stock trades at 34.3x P/FCF, 14% above the 5-year average of 30.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.6B | $8.5B | $13.6B | $7.0B | $8.7B | $7.4B | $1.9B | $1.5B | $1.5B | $1.2B | $1.3B |
| Enterprise Value | $13.6B | $9.5B | $14.5B | $8.1B | $9.6B | $8.1B | $2.9B | $1.8B | $1.8B | $1.6B | $1.7B |
| P/E Ratio → | 25.82 | 18.86 | 26.70 | 13.85 | 37.72 | 39.92 | — | 19.09 | 23.55 | 37.12 | 62.65 |
| P/S Ratio | 4.35 | 2.93 | 4.73 | 2.29 | 3.13 | 3.73 | 1.12 | 1.07 | 1.10 | 0.97 | 1.01 |
| P/B Ratio | 7.11 | 5.19 | 10.63 | 7.05 | 7.84 | 6.96 | 2.39 | 2.97 | 3.43 | 3.56 | 4.26 |
| P/FCF | 34.30 | 23.05 | 25.48 | 12.97 | 68.86 | 19.81 | 7.88 | 13.71 | 15.29 | 23.01 | 14.55 |
| P/OCF | 21.74 | 14.61 | 18.96 | 9.91 | 31.51 | 16.36 | 6.14 | 9.79 | 10.64 | 11.69 | 9.70 |
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 16.2x EBITDA, 14% above its 5-year average of 14.2x. The Industrials sector median is 13.9x, placing the stock at a 17% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.26 | 5.04 | 2.65 | 3.47 | 4.06 | 1.72 | 1.30 | 1.37 | 1.30 | 1.34 |
| EV / EBITDA | 16.20 | 11.27 | 16.33 | 9.42 | 17.34 | 16.43 | 168.36 | 8.92 | 11.16 | 11.03 | 18.90 |
| EV / EBIT | 20.72 | 13.91 | 19.17 | 11.19 | 23.02 | 23.15 | 16.97 | 13.78 | 19.75 | 19.93 | 22.18 |
| EV / FCF | — | 25.71 | 27.12 | 15.05 | 76.32 | 21.57 | 12.05 | 16.58 | 19.09 | 30.99 | 19.19 |
WMS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Advanced Drainage Systems, Inc. earns an operating margin of 22.6%, significantly above the Industrials sector average of 4.9%. Return on equity of 30.9% is exceptionally high — well above the sector median of 8.2%. ROIC of 20.7% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.7% | 37.7% | 39.9% | 36.4% | 28.9% | 34.8% | 29.7% | 23.6% | 22.7% | 23.5% | 21.8% |
| Operating Margin | 22.6% | 22.6% | 25.5% | 23.4% | 14.9% | 17.4% | -5.7% | 9.3% | 6.6% | 6.1% | 6.4% |
| Net Profit Margin | 15.5% | 15.5% | 17.7% | 16.5% | 9.8% | 11.3% | -11.5% | 5.6% | 4.7% | 2.6% | 1.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.9% | 30.9% | 44.8% | 48.3% | 25.0% | 24.3% | -30.1% | 16.8% | 16.2% | 10.1% | 6.7% |
| ROA | 12.9% | 12.9% | 16.5% | 18.3% | 10.7% | 9.4% | -11.3% | 7.5% | 5.9% | 3.2% | 2.0% |
| ROIC | 20.7% | 20.7% | 25.7% | 25.9% | 16.4% | 14.8% | -5.5% | 12.1% | 8.5% | 7.7% | 8.3% |
| ROCE | 21.5% | 21.5% | 27.4% | 30.1% | 18.9% | 16.3% | -6.4% | 15.6% | 10.9% | 9.6% | 10.1% |
WMS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Advanced Drainage Systems, Inc. carries a Debt/EBITDA ratio of 1.7x, which is manageable (46% below the sector average of 3.2x). Net debt stands at $982M ($1.4B total debt minus $463M cash). Interest coverage of 7.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.88 | 0.88 | 1.07 | 1.35 | 0.87 | 0.80 | 1.49 | 0.64 | 0.89 | 1.25 | 1.38 |
| Debt / EBITDA | 1.72 | 1.72 | 1.54 | 1.55 | 1.73 | 1.74 | 68.52 | 1.59 | 2.33 | 2.88 | 4.65 |
| Net Debt / Equity | — | 0.60 | 0.68 | 1.13 | 0.85 | 0.62 | 1.27 | 0.62 | 0.85 | 1.23 | 1.36 |
| Net Debt / EBITDA | 1.17 | 1.17 | 0.99 | 1.30 | 1.70 | 1.34 | 58.32 | 1.54 | 2.22 | 2.84 | 4.57 |
| Debt / FCF | — | 2.66 | 1.64 | 2.07 | 7.46 | 1.76 | 4.17 | 2.87 | 3.80 | 7.98 | 4.65 |
| Interest Coverage | 7.16 | 7.16 | 8.24 | 10.25 | 12.28 | 9.66 | -1.15 | 6.95 | 5.78 | 4.37 | 4.45 |
WMS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Advanced Drainage Systems, Inc.'s current ratio of 3.33x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 2.10x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 2.69x to 3.33x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.33 | 3.33 | 2.96 | 2.69 | 2.23 | 2.33 | 2.80 | 2.26 | 2.07 | 1.72 | 1.77 |
| Quick Ratio | 2.10 | 2.10 | 1.90 | 1.46 | 0.97 | 1.39 | 1.61 | 0.98 | 0.88 | 0.71 | 0.81 |
| Cash Ratio | 1.16 | 1.16 | 1.11 | 0.57 | 0.05 | 0.61 | 0.73 | 0.04 | 0.08 | 0.03 | 0.03 |
| Asset Turnover | — | 0.79 | 0.88 | 1.06 | 1.05 | 0.82 | 0.71 | 1.33 | 1.28 | 1.20 | 1.24 |
| Inventory Turnover | 3.71 | 3.71 | 3.72 | 4.21 | 3.98 | 4.30 | 4.17 | 4.00 | 3.90 | 3.72 | 4.24 |
| Days Sales Outstanding | — | 41.88 | 41.09 | 36.48 | 45.04 | 43.48 | 43.62 | 49.29 | 47.18 | 49.05 | 52.90 |
WMS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Advanced Drainage Systems, Inc. returns 1.0% to shareholders annually — split between a 0.4% dividend yield and 0.6% buyback yield. The payout ratio of 11.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.9% (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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.6% | 0.3% | 0.6% | 0.4% | 0.4% | 4.9% | 1.8% | 1.3% | 1.4% | 1.2% |
| Payout Ratio | 11.0% | 11.0% | 8.6% | 7.8% | 13.6% | 13.7% | — | 33.6% | 29.8% | 51.0% | 78.7% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 5.3% | 3.7% | 7.2% | 2.7% | 2.5% | — | 5.2% | 4.2% | 2.7% | 1.6% |
| FCF Yield | 2.9% | 4.3% | 3.9% | 7.7% | 1.5% | 5.0% | 12.7% | 7.3% | 6.5% | 4.3% | 6.9% |
| Buyback Yield | 0.6% | 0.8% | 1.5% | 8.2% | 3.4% | 0.0% | 0.0% | 0.0% | 0.5% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.0% | 1.4% | 1.8% | 8.8% | 3.8% | 0.4% | 4.9% | 1.8% | 1.8% | 1.4% | 1.2% |
| Shares Outstanding | — | $78M | $79M | $83M | $73M | $72M | $64M | $58M | $56M | $56M | $61M |
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 | $13B | 25.8 | 16.2 | 34.3 | 37.7% | 22.6% | 30.9% | 20.7% | 1.7 |
 NVR | $17B | 14.0 | 9.0 | 15.4 | 23.0% | 16.2% | 33.2% | 43.8% | 0.7 |
 AAON | $8B | 76.2 | 37.6 | — | 26.7% | 10.1% | 12.5% | 9.4% | 1.9 |
 FBIN | $5B | 10.6 | 7.8 | 10.1 | 44.8% | 16.0% | 20.0% | 11.5% | 3.0 |
 TREX | $4B | 22.4 | 13.9 | 31.6 | 39.2% | 22.0% | 20.2% | 16.4% | 0.7 |
 PNR | $13B | 20.2 | 14.8 | 17.3 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
 NWPX | $1B | 31.2 | 16.6 | 22.7 | 19.7% | 9.7% | 9.2% | 7.6% | 1.5 |
 MYRG | $7B | 60.4 | 30.7 | 30.5 | 11.5% | 4.4% | 18.8% | 18.3% | 0.5 |
 LYB | $24B | -31.3 | 34.0 | 61.6 | 9.0% | -1.1% | -6.5% | -1.1% | 15.0 |
 WLK | $13B | -8.5 | — | — | 2.6% | -14.1% | -14.8% | -9.0% | — |
 OLN | $3B | -77.8 | 10.2 | 13.2 | 7.4% | 1.7% | -2.1% | 1.7% | 5.3 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full WMS Stock Analysis
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Start ComparisonWMS — 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 25.8x. The historical average is 33.8x. This places it at the 40th percentile of its historical range.
What is Advanced Drainage Systems, Inc.'s EV/EBITDA?
Advanced Drainage Systems, Inc.'s current EV/EBITDA is 16.2x. 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 30.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.3%.
Is WMS stock overvalued?
Based on historical data, Advanced Drainage Systems, Inc. is trading at a P/E of 25.8x. This is at the 40th 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 0.43% with a payout ratio of 11.0%.
What are Advanced Drainage Systems, Inc.'s profit margins?
Advanced Drainage Systems, Inc. has 37.7% gross margin and 22.6% 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 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.