Advanced Drainage Systems Inc. (NYSE:WMS) previous close was $106.22 while the outstanding shares total 70.94M. The firm has a beta of 1.39, a 12-month trailing P/E ratio of 40.00, and a growth ratio of 0.81. WMS’s shares traded lower over the last trading session, losing -2.39% on 06/17/21. The shares fell to a low of $100.03 before closing at $103.68. Intraday shares traded counted 0.55 million, which was -19.8% lower than its 30-day average trading volume of 461.59K. The stock’s Relative Strength Index (RSI) is 38.89, with weekly volatility at 3.10% and ATR at 3.63. The WMS stock’s 52-week price range has touched low of $45.32 and a $117.89 high.
Investors have identified the Building Products & Equipment company Advanced Drainage Systems Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $7.37 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Advanced Drainage Systems Inc. (WMS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For WMS, the company has in raw cash 195.01 million on their books with 7.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 742.98 million total, with 318.27 million as their total liabilities.
WMS were able to record 373.46 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 20.78 million. In cash movements, the company had a total of 452.22 million as operating cash flow.
Potential earnings growth for Advanced Drainage Systems Inc. (WMS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Advanced Drainage Systems Inc. recorded a total of 443.81 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 16.46% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -9.54%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 316.59 million trying to sell their products during the last quarter, with the result yielding a gross income of 127.22 million. This allows shareholders to hold on to 70.94M with the recently reported earning now reading 0.28 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.23 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.69 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WMS sounds very interesting.
Is the stock of WMS attractive?
In related news, EVP, Sales, KLEIN ROBERT M sold 13,475 shares of the company’s stock in a transaction that recorded on Jun 11. The sale was performed at an average price of 103.59, for a total value of 1,395,937. As the sale deal closes, the EVP, Supply Chain & Logistics, HARVEY DARIN S. now sold 6,230 shares of the company’s stock, valued at 709,130. Also, 10% Owner, Berkshire Partners Holdings LL sold 1,455,341 shares of the company’s stock in a deal that was recorded on Mar 10. The shares were price at an average price of 103.61 per share, with a total market value of 150,787,881. Following this completion of acquisition, the 10% Owner, Berkshire Partners Holdings LL now holds 40,655 shares of the company’s stock, valued at 4,212,265. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.90%.
2 out of 5 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Advanced Drainage Systems Inc.. 0 analysts has assigned a Sell rating on the WMS stock. The 12-month mean consensus price target for the company’s shares has been set at $126.25.