WMS
Advanced Drainage Systems, Inc.
WMS's fundamentals are mixed: it turned 16% of its revenue into free cash flow, but its operating margin fell 3 points to 20%. At 23x earnings, it's trading in line with its usual 26x. Analysts expect earnings growth.
WMS Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Healthy | |
| Stable |
WMS's revenue, profitability and cash flow are currently healthy, and its balance sheet is stable.
WMS PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 19x | $100 | -19% |
| Forward | 19x | $124 | — |
| Current | 23x | $124 | — |
| Fair | 25x | $134 | +8.5% |
| Expensive | 43x | $226 | +83% |
Historical ranges are pointers, not guarantees.
WMS's PE is in its fair range at 23x. If earnings grow as analysts expect, today's price would be 19x next year's earnings, in its cheap range.
WMS Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Stable | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for WMS, with profitability holding steady.
WMS Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.43 | +22% |
| Q3 2026 | $5.26 | -10% |
| Q2 2026 | $5.79 | +4.5% |
| Q1 2026 | $5.44 | -5.6% |
| Q4 2025 | $6.01 | +0.3% |
| Q3 2025 | $5.86 | -6.8% |
| Q2 2025 | $5.54 | -12% |
| Q1 2025 | $5.76 | -11% |
| Q4 2024 | $5.99 | -4.9% |
WMS earned $5.26 per share over the past year, down 10% from the year before.
WMS Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $889.4M | +4.6% |
| Q2 2026 | $1B | +21% |
| Q1 2026 | $676.8M | +9.9% |
| Q4 2025 | $693.4M | +0.4% |
| Q3 2025 | $850.4M | +8.7% |
| Q2 2025 | $829.9M | +1.8% |
| Q1 2025 | $615.8M | -5.8% |
| Q4 2024 | $690.5M | +4.3% |
WMS's revenue has grown year over year for six quarters in a row: $889M last quarter, up 4.6% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 22% | -4.4 points |
| Q2 2026 | 25% | +0.6 points |
| Q1 2026 | 7.9% | -11 points |
| Q4 2025 | 20% | +1.4 points |
| Q3 2025 | 26% | +2.3 points |
| Q2 2025 | 25% | -3 points |
| Q1 2025 | 19% | -1.7 points |
| Q4 2024 | 18% | -4.8 points |
WMS's operating margin was 22% last quarter, down 4.4 points from the same quarter a year ago.
WMS Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $156.2M | -11% |
| Q2 2026 | $203.2M | -8.6% |
| Q1 2026 | -$13.1M | -$7.8M |
| Q4 2025 | $183.6M | +35% |
| Q3 2025 | $176.4M | +57% |
| Q2 2025 | $222.4M | +77% |
| Q1 2025 | -$5.3M | +$24.5M |
| Q4 2024 | $135.7M | -28% |
WMS generated $530M in free cash flow over the past year, about the same as the year before.
WMS Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.6% | -1.2M shares |
| 1 year | -3.2% | -2.5M shares |
| 3 years | -4.4% | -3.5M shares |
| 5 years | +5.4% | +3.9M shares |
| Available history | +9.4% | +6.5M shares |
WMS has 76M diluted shares, down 3.2% from a year ago, with $465M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $139.7M |
| Q2 2026 | $233.2M |
| Q1 2026 | $92M |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
WMS spent $465M buying back its own shares over the past year, after none the year before.
WMS Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.7x | Healthy |
| Q2 2026 | 1.6x | Healthy |
| Q1 2026 | 1.7x | Healthy |
| Q4 2025 | 0.3x | Very low |
| Q3 2025 | 0.5x | Very low |
| Q2 2025 | 0.8x | Very low |
| Q1 2025 | 1.0x | Very low |
| Q4 2024 | 0.9x | Very low |
WMS's net debt is about 1.7 years of its operating earnings (EBITDA), up from less than a year a year ago.
WMS Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 40.5 | Neutral |
| Stochastic | 20.8 | Neutral |
WMS's weekly RSI is 41 (neutral) and its Stochastic is 21 (neutral).
WMS PE vs Industrials Sector
| Metric | WMS | Sector median | Relative |
|---|---|---|---|
| PE | 23x | 24x | 2.3% below |
| PE % | 37 | 58 | 21 pts below |
WMS is trading at 23x earnings, in line with the Industrials sector's median of 24x.
WMS Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $128.5 | 3.9% below |
| 20 week MA | $136.2 | 9.3% below |
| 50 week MA | $143.7 | 14% below |
| 100 week MA | $133.9 | 7.8% below |
| 200 week MA | $132.5 | 6.8% below |
WMS is in a downtrend: it's below all five of its weekly moving averages, and 6.8% below its 200-week average.
WMS Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $39.3 | $81.5 | +107% |
| 2021 | $81.5 | $133.6 | +64% |
| 2022 | $133.6 | $82.8 | -38% |
| 2023 | $82.8 | $140.6 | +70% |
| 2024 | $140.6 | $115.6 | -18% |
| 2025 | $115.6 | $149.6 | +29% |
| 2026 YTD | $149.6 | $123.5 | -17% |
WMS has finished higher in four of the last six years, three of them by more than 50%. It's down 17% so far in 2026.