Is the business good?
How good a business is WMS?
Advanced Drainage Systems, Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.3 points above what the capital costs: growth creates value
- Operating margin
- 21%
Operating margin · Building Products & Equipment median 16% · 12 months to Q1 2027
- Cash conversion
- 1.22×
Cash conversion · 1.07× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 17% |
| FY2022 | 15% |
| FY2023 | 23% |
| FY2024 | 25% |
| FY2025 | 23% |
| FY2026 | 20% |
Details›
- Gross margin12 months to Q1 2027
- 39%
- Operating margin12 months to Q1 2027
- 21%
- Net margin12 months to Q1 2027
- 14%
- Free cash flow margin
- 17%
- Revenue, trailing twelve months
- $3.22B
- Free cash flow, trailing twelve months
- $550M
- Net income, trailing twelve months
- $451M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Building Products & Equipment
Ranks #5 of 18 by Smart Score