Is Advanced Drainage Stock a Good Investment?
Advanced Drainage Investment Advice | WMS |
- Examine Advanced Drainage's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Advanced Drainage's leadership team and their track record. Good management can help Advanced Drainage navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Building Products space and any emerging trends that could impact Advanced Drainage's business and its evolving consumer preferences.
- Compare Advanced Drainage's performance and market position to its competitors. Analyze how Advanced Drainage is positioned in terms of product offerings, innovation, and market share.
- Check if Advanced Drainage pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Advanced Drainage's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Advanced Drainage Systems stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Advanced Drainage Systems is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Advanced Drainage Stock
Researching Advanced Drainage's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.22. Advanced Drainage Systems recorded earning per share (EPS) of 6.29. The entity last dividend was issued on the 2nd of December 2024. The firm had 3:2 split on the June 15, 2007.
To determine if Advanced Drainage is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Advanced Drainage's research are outlined below:
| Advanced Drainage generated a negative expected return over the last 90 days | |
| Advanced Drainage has a strong financial position based on the latest SEC filings | |
| Over 89.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Principal Financial Group Incs Strategic Acquisition in Advanced Drainage Systems Inc |
Advanced Drainage Quarterly Accounts Payable |
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Advanced Drainage uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Advanced Drainage Systems. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Advanced Drainage's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 16th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 16th of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Advanced Drainage's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Advanced Drainage's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-02-09 | 2016-12-31 | 0.14 | 0.16 | 0.02 | 14 | ||
2020-05-21 | 2020-03-31 | 0.04 | 0.01 | -0.03 | 75 | ||
2018-05-29 | 2018-03-31 | -0.06 | -0.03 | 0.03 | 50 | ||
2016-05-31 | 2016-03-31 | 0.16 | 0.2 | 0.04 | 25 | ||
2014-11-05 | 2014-09-30 | 0.31 | 0.35 | 0.04 | 12 | ||
2020-02-06 | 2019-12-31 | 0.33 | 0.28 | -0.05 | 15 | ||
2019-02-07 | 2018-12-31 | 0.31 | 0.25 | -0.06 | 19 | ||
2018-02-08 | 2017-12-31 | 0.2 | 0.28 | 0.08 | 40 |
Know Advanced Drainage's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Advanced Drainage is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Advanced Drainage Systems backward and forwards among themselves. Advanced Drainage's institutional investor refers to the entity that pools money to purchase Advanced Drainage's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Thrivent Financial For Lutherans | 2024-09-30 | 1.3 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 1.3 M | William Blair Investment Management, Llc | 2024-09-30 | 1.1 M | Geode Capital Management, Llc | 2024-06-30 | 1.1 M | Canada Pension Plan Investment Board | 2024-09-30 | 863.2 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 784.9 K | First Trust Advisors L.p. | 2024-06-30 | 747.2 K | Norges Bank | 2024-06-30 | 697.4 K | Liontrust Investment Partners Llp | 2024-09-30 | 644.4 K | Blackrock Inc | 2024-06-30 | 7.6 M | Vanguard Group Inc | 2024-09-30 | 7.3 M |
Advanced Drainage's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 9.95 B.Market Cap |
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Advanced Drainage's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.22 | 0.23 | |
| Return On Capital Employed | 0.26 | 0.27 | |
| Return On Assets | 0.16 | 0.16 | |
| Return On Equity | 0.40 | 0.42 |
Determining Advanced Drainage's profitability involves analyzing its financial statements and using various financial metrics to determine if Advanced Drainage is a good buy. For example, gross profit margin measures Advanced Drainage's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Advanced Drainage's profitability and make more informed investment decisions.
Advanced Drainage's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Advanced Drainage's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Advanced Drainage Systems. Check Advanced Drainage's Beneish M Score to see the likelihood of Advanced Drainage's management manipulating its earnings.
Evaluate Advanced Drainage's management efficiency
Advanced Drainage Systems has Return on Asset of 0.1326 % which means that on every $100 spent on assets, it made $0.1326 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.406 %, implying that it generated $0.406 on every 100 dollars invested. Advanced Drainage's management efficiency ratios could be used to measure how well Advanced Drainage manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to gain to 0.23 in 2024. Return On Capital Employed is likely to gain to 0.27 in 2024. At this time, Advanced Drainage's Net Tangible Assets are comparatively stable compared to the past year. Return On Tangible Assets is likely to gain to 0.23 in 2024, whereas Non Current Assets Total are likely to drop slightly above 1.2 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 16.37 | 9.31 | |
| Tangible Book Value Per Share | 3.97 | 2.85 | |
| Enterprise Value Over EBITDA | 15.70 | 16.29 | |
| Price Book Value Ratio | 10.57 | 11.10 | |
| Enterprise Value Multiple | 15.70 | 16.29 | |
| Price Fair Value | 10.57 | 11.10 | |
| Enterprise Value | 7.2 B | 3.7 B |
Advanced Drainage Systems has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Dividend Yield 0.005 | Forward Dividend Yield 0.005 | Forward Dividend Rate 0.64 | Beta 1.533 |
Basic technical analysis of Advanced Stock
As of the 21st of November, Advanced Drainage shows the Risk Adjusted Performance of (0.05), mean deviation of 1.64, and Standard Deviation of 2.62. In respect to fundamental indicators, the technical analysis model gives you tools to check existing technical drivers of Advanced Drainage, as well as the relationship between them. Please confirm Advanced Drainage Systems risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and kurtosis to decide if Advanced Drainage Systems is priced correctly, providing market reflects its regular price of 128.41 per share. Given that Advanced Drainage has information ratio of (0.11), we suggest you to validate Advanced Drainage Systems's prevailing market performance to make sure the company can sustain itself at a future point.Advanced Drainage's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Advanced Drainage insiders, such as employees or executives, is commonly permitted as long as it does not rely on Advanced Drainage's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Advanced Drainage insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Advanced Drainage's Outstanding Corporate Bonds
Advanced Drainage issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Advanced Drainage Systems uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Advanced bonds can be classified according to their maturity, which is the date when Advanced Drainage Systems has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| Advanced Drainage Systems Corp BondUS00790RAA23 | View | |
| WMS 6375 15 JUN 30 Corp BondUS00790RAB06 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| ADVISOR GROUP HLDGS Corp BondUS00791GAA58 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View |
Understand Advanced Drainage's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Advanced Drainage's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.64 | |||
| Coefficient Of Variation | (1,286) | |||
| Standard Deviation | 2.62 | |||
| Variance | 6.86 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.33) | |||
| Total Risk Alpha | (0.51) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 19.69 | |||
| Value At Risk | (3.58) | |||
| Potential Upside | 3.97 | |||
| Skewness | (2.30) | |||
| Kurtosis | 12.51 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.64 | |||
| Coefficient Of Variation | (1,286) | |||
| Standard Deviation | 2.62 | |||
| Variance | 6.86 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.33) | |||
| Total Risk Alpha | (0.51) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 19.69 | |||
| Value At Risk | (3.58) | |||
| Potential Upside | 3.97 | |||
| Skewness | (2.30) | |||
| Kurtosis | 12.51 |
Consider Advanced Drainage's intraday indicators
Advanced Drainage intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Advanced Drainage stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 24493.94 | |||
| Daily Balance Of Power | 0.0054 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 129.5 | |||
| Day Typical Price | 129.13 | |||
| Price Action Indicator | (1.08) | |||
| Period Momentum Indicator | 0.02 | |||
| Relative Strength Index | 57.74 |
Advanced Drainage Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 8th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 16th of September 2024 Other Reports | ViewVerify | |
F3 | 22nd of July 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Advanced Stock media impact
Far too much social signal, news, headlines, and media speculation about Advanced Drainage that are available to investors today. That information is available publicly through Advanced media outlets and privately through word of mouth or via Advanced internal channels. However, regardless of the origin, that massive amount of Advanced data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Advanced Drainage news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Advanced Drainage relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Advanced Drainage's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Advanced Drainage alpha.
Advanced Drainage Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Advanced Drainage can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Advanced Drainage Systems Historical Investor Sentiment
Investor biases related to Advanced Drainage's public news can be used to forecast risks associated with an investment in Advanced. The trend in average sentiment can be used to explain how an investor holding Advanced can time the market purely based on public headlines and social activities around Advanced Drainage Systems. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Advanced Drainage's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Advanced Drainage and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Advanced Drainage news discussions. The higher the estimate score, the more favorable the investor's outlook on Advanced Drainage.
Advanced Drainage Corporate Directors
| Tanya Fratto | Independent Director | Profile | |
| Robert Eversole | Independent Director | Profile | |
| Alexander Fischer | Independent Director | Profile | |
| Michael Coleman | Independent Director | Profile |
Already Invested in Advanced Drainage Systems?
The danger of trading Advanced Drainage Systems is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Advanced Drainage is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Advanced Drainage. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Advanced Drainage Systems is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Advanced Stock Analysis
When running Advanced Drainage's price analysis, check to measure Advanced Drainage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advanced Drainage is operating at the current time. Most of Advanced Drainage's value examination focuses on studying past and present price action to predict the probability of Advanced Drainage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advanced Drainage's price. Additionally, you may evaluate how the addition of Advanced Drainage to your portfolios can decrease your overall portfolio volatility.