WMSAdvanced Drainage Systems, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 7.8% · 12 months to Q1 2027
- Cash conversion
- 1.58×
Cash conversion · 1.40× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from WMS and who it buys from, as the companies report it.
- Ferguson Enterprises and Core and Main26%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; WMS’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Building Products & Equipment
Ranks #5 of 19 by RyuScore