ADVANCED DRAINAGE SYSTEMS, INC. (WMS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ADVANCED DRAINAGE SYSTEMS, INC. Do?
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aeration wastewater solutions, septic tanks and accessories, and combined treatment and dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 38 distribution centers. The company was incorporated in 1966 and is headquartered in Hilliard, Ohio. ADVANCED DRAINAGE SYSTEMS, INC. (WMS) is classified as a large-cap stock in the Materials sector, specifically within the Rubber And Plastic Products industry. The company is led by CEO D. Scott Barbour and employs approximately 5,640 people, headquartered in Hilliard, Ohio. With a market capitalization of $10.7B, WMS is one of the prominent companies in the Materials sector.
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) Stock Rating — Hold (April 2026)
As of April 2026, ADVANCED DRAINAGE SYSTEMS, INC. receives a Hold rating with a composite score of 52.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.WMS ranks #1,586 out of 4,446 stocks in our coverage universe. Within the Materials sector, ADVANCED DRAINAGE SYSTEMS, INC. ranks #101 of 284 stocks, placing it in the upper half of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WMS Stock Price and 52-Week Range
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) currently trades at $147.18. The stock lost $2.10 (1.4%) in the most recent trading session. The 52-week high for WMS is $179.31, which means the stock is currently trading -17.9% from its annual peak. The 52-week low is $93.92, putting the stock 56.7% above its annual trough. Recent trading volume was 448K shares, suggesting relatively thin trading activity.
Is WMS Overvalued or Undervalued? — Valuation Analysis
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) carries a value factor score of 44/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.77x, compared to the Materials sector average of 26.50x — a discount of 22%. The price-to-book ratio stands at 5.60x, versus the sector average of 2.83x. The price-to-sales ratio is 3.46x, compared to 0.74x for the average Materials stock. On an enterprise value basis, WMS trades at 11.44x EV/EBITDA, versus 6.01x for the sector. The EV/EBIT multiple is 21.62x.
Overall, WMS's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ADVANCED DRAINAGE SYSTEMS, INC. Profitability — ROE, Margins, and Quality Score
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) earns a quality factor score of 69/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 27.0%, compared to the Materials sector average of 3.3%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 12.7% versus the sector average of 0.6%.
On a margin basis, ADVANCED DRAINAGE SYSTEMS, INC. reports gross margins of 38.7%, compared to 29.8% for the sector. The operating margin is 23.7% (sector: 6.0%). Net profit margin stands at 16.5%, versus 3.0% for the average Materials stock. Revenue growth is running at -15.0% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
WMS Debt, Balance Sheet, and Financial Health
ADVANCED DRAINAGE SYSTEMS, INC. has a debt-to-equity ratio of 108.0%, compared to the Materials sector average of 41.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 4.12x, indicating strong short-term liquidity. Total debt on the balance sheet is $1.41B.
WMS has a beta of 1.38, meaning it is more volatile than the broader market — a $10,000 investment in WMS would be expected to move 37.8% more than the S&P 500 on any given day. The stability factor score for ADVANCED DRAINAGE SYSTEMS, INC. is 57/100, reflecting average volatility within the normal range for its sector.
ADVANCED DRAINAGE SYSTEMS, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, ADVANCED DRAINAGE SYSTEMS, INC. reported revenue of $3.16B and earnings per share (EPS) of $1.20. Net income for the quarter was $526M. Gross margin was 38.7%. Operating income came in at $753M.
In Q3 2026, ADVANCED DRAINAGE SYSTEMS, INC. reported revenue of $693M and earnings per share (EPS) of $1.20. Net income for the quarter was $94M. Gross margin was 37.4%. Operating income came in at $137M.
In Q2 2026, ADVANCED DRAINAGE SYSTEMS, INC. reported revenue of $850M and earnings per share (EPS) of $2.01. Net income for the quarter was $157M. Gross margin was 40.0%. Revenue grew 8.7% year-over-year compared to Q2 2025. Operating income came in at $223M.
In Q1 2026, ADVANCED DRAINAGE SYSTEMS, INC. reported revenue of $830M and earnings per share (EPS) of $1.85. Net income for the quarter was $144M. Gross margin was 39.8%. Revenue grew 1.8% year-over-year compared to Q1 2025. Operating income came in at $206M.
Over the past 8 quarters, ADVANCED DRAINAGE SYSTEMS, INC. has demonstrated a growth trajectory, with revenue expanding from $2.87B to $3.16B. Investors analyzing WMS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WMS Dividend Yield and Income Analysis
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) currently pays a dividend yield of 0.6%. At this yield, a $10,000 investment in WMS stock would generate approximately $$57.00 in annual dividend income. This compares to the Materials sector average dividend yield of 0.5%, meaning WMS offers above-average income for its sector. With a net margin of 16.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
WMS Momentum and Technical Analysis Profile
ADVANCED DRAINAGE SYSTEMS, INC. (WMS) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WMS vs Competitors — Materials Sector Ranking and Peer Comparison
Within the Materials sector, ADVANCED DRAINAGE SYSTEMS, INC. (WMS) ranks #101 out of 284 stocks based on the Blank Capital composite score. This places WMS in the upper half of all Materials stocks in our coverage universe. Key competitors and sector peers include CF Industries Holdings, Inc. (CF) with a score of 56.6/100, Nutrien Ltd. (NTR) with a score of 56.6/100, CVR PARTNERS, LP (UAN) with a score of 55.6/100, LSB INDUSTRIES, INC. (LXU) with a score of 53.6/100, and ACME UNITED CORP (ACU) with a score of 51.2/100.
Comparing WMS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WMS vs S&P 500 (SPY) comparison to assess how ADVANCED DRAINAGE SYSTEMS, INC. stacks up against the broader market across all factor dimensions.
WMS Next Earnings Date
No upcoming earnings date has been announced for ADVANCED DRAINAGE SYSTEMS, INC. (WMS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WMS? — Investment Thesis Summary
ADVANCED DRAINAGE SYSTEMS, INC. presents a balanced picture with arguments on both sides. The quality score of 69/100 indicates above-average profitability and business fundamentals.
In summary, ADVANCED DRAINAGE SYSTEMS, INC. (WMS) earns a Hold rating with a composite score of 52.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WMS stock.
Related Resources for WMS Investors
Explore more research and tools: WMS vs S&P 500 comparison, top Materials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare WMS head-to-head with peers: WMS vs CF, WMS vs NTR, WMS vs UAN.