Advanced Drainage Systems has seen upward estimate revision of 9.4% for fiscal 2022 earnings over the past 30 days. In April 2022, the 15.6 million shares of preferred stock outstanding converted to 12.0 million shares of common stock, resulting in $19.2 million of additional non-cash, stock-based compensation expense recorded in Cost of goods sold - ESOP acceleration and $11.3 of additional non-cash, stock-based compensation expense recorded in Selling, general and administrative - ESOP acceleration in the fourth quarter and fiscal year ended March 31, 2022. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The Surprise factor looks at the last few quarters of earnings surprises. The conversion of the preferred shares increased the number of common shares outstanding. Neither Zacks Investment Based on current visibility, backlog of existing orders and business trends, the Company issued the following targets for fiscal 2023. more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. ADS is seeing strong demand in both residential and non-residential markets. Labor shortages and absenteeism related to COVID-19 remain a challenge in both manufacturing and transportation operations. Quality, Detention Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As a percentage of net sales, Adjusted EBITDA was 24.4% as compared to 28.6% in the prior year. These statements are not historical facts but rather are based on the Companys current expectations, estimates and projections regarding the Companys business, operations and other factors relating thereto. Net cash provided by operating activities was $274.9 million, as compared to $452.2 million in the prior year. This EPS growth is reasonably close to the 40% average annual increase in the share price. While Advanced Drainage Systems, Inc. (NYSE:WMS) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 12% in the last quarter. Kirk Spano is an RIA. Looking for a helping hand in the market? Investor Relations: Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. None of the information presented should be construed as an offer to sell or buy any particular security. This includes personalizing content and advertising. Fiscal Year 2022. I have read and understand the, I understand that I will be billed $499 monthly if I choose to continue. Ports, Federal & Investing involves substantial risk. When will WMS price fall? Will WMS price go up? Our demand environment, strong backlog, favorable pricing and progress on the continuous improvement initiatives give us confidence in the guidance being issued today for fiscal year 2023. It's down 1.2% in the last seven days. VP, Corporate Strategy & Investor Relations VP Corporate Strategy & Investor Relations The ADS Engineering and Technology Center. I always refer your site before writing. This press release includes references to organic results, Adjusted EBITDA and Free Cash Flow, non-GAAP financial measures. When it comes to planning for a drainage system, many factors affect your decision making. We aim to bring you long-term focused analysis driven by fundamental data. 5 Advancing the world's water infrastructure with chambers, basins and more. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. Adjusted EBITDA is expected to be in the range of $800 to $820 million. The Advanced Drainage Systems stock price may drop from HILLIARD, Ohio--(BUSINESS WIRE)-- Third Party Code of Conduct | Participants may also register for this conference call by copy and pasting the following text into your browser: https://www.incommglobalevents.com/registration/q4inc/10578/ads-fourth-quarter-fiscal-year-2022-financial-results/. Net sales are expected to be in the range of $3.100 billion to $3.200 billion. David previously contributed to Kirk Spano's Margin of Safety Investing [MoSI] Marketplace Service and Risk Research Inc. David focuses on growth & momentum stocks that are reasonably priced and likely to outperform the market over the long-term. Domestic allied products & other sales increased $126.9 million, or 28.7%, to $569.4 million. Business relationship disclosure: The article was written by David Zanoni for Kirk Spano's Margin of Safety Investing service [MoSI]. ADS offers materials that tend to be lighter, more durable, easier to install, and more cost effective than other competing materials. Management Solutions, Water For example, watch for an opportunity like in early April, where the stock began to recover after a sizeable dip. This is positive in the very near term as the stock has been rising and showing strength. Domestic pipe sales increased $496.0 million, or 46.8%, to $1,555.2 million. Studio, Start a No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. Advanced Drainage Systems (NYSE:WMS) has a positive growth outlook as a designer and manufacturer of thermoplastic corrugated pipes and related water management products and drainage solutions. That's including the dividend. He wants to help make people money by investing in high-quality growth stocks. 337927). Pour en savoir plus sur la faon dont nous utilisons vos donnes personnelles, veuillez consulter notre politique relative la vie prive et notre politique en matire de cookies. John M Lund Photography Inc/DigitalVision via Getty Images. Upside is the percentage difference between the most accurate estimate and the consensus estimate. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. This should help drive the stock higher if these projections are met or exceeded, leading to annual revenue and earnings growth. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The risk of loss in trading securities can be substantial. As always, use your best judgment when investing. Media Contact: Nicole Voss Director of Sustainability Advanced Drainage Systems, Inc. Nicole.voss@adspipe.com 614-419-6174 Investor Relations: Michael Higgins VP Corporate Strategy & Investor . During five years of share price growth, Advanced Drainage Systems achieved compound earnings per share (EPS) growth of 36% per year. Coming soon: the most advanced stormwater engineering center in the world. Take a more thorough look at Advanced Drainage Systems' financial health with this free report on its balance sheet. The past year posed several unique challenges, including continued inflationary pressure, supply chain challenges and a shortage of . In addition, the Company recorded $19.2 million of non-cash, stock-based compensation expense in Cost of goods sold - ESOP acceleration expense as described below under the heading "Employee Stock Ownership Plan (ESOP)". These increases were driven by double-digit sales growth in the U.S. construction end markets. This was driven by growth in the Canadian business with strength in the agriculture and construction markets. International sales increased $5.6 million, or 16.3%, to $40.0 million. The Recycling Partnership is a national nonprofit organization that engages the full recycling supply chain to create meaningful social, environmental and economic change by providing tools, resources and technical support and investing in recycling infrastructure. The increase is primarily due to the factors mentioned above. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Companys expectations, objectives or plans will be achieved in the timeframe anticipated or at all. My thesis is that the company's strong earnings growth is likely to help drive above-average stock growth over the next three years. The Companys definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Gross profit increased $110.3 million, or 16.0%, to $800.4 million as compared to $690.1 million in the prior year. Please read our Financial Services Guide before deciding whether to obtain financial services from us. The agriculture market was also strong for ADS where the company achieved a 50% increase in sales. See rankings and related performance below. The Infiltrator acquisition diversified ADS's revenue since it increased the company's exposure to the residential market. Also refer for more: Coal India share price target. We use cookies to understand how you use our site and to improve your experience. You can sign up for additional subscriptions at any time. and Specialty, Water However, the TSR over five years, coming in at 42% per year, is even more impressive. https://www.businesswire.com/news/home/20210527005380/en/, Media Contact: SELECT THE BEST FIT SO WE CAN BETTER SERVE YOU. We've quantified the difference between the two estimates with our Earnings ESP (Expected Surprise Prediction). Backlog levels remain elevated, up double-digits over the prior year but down from fiscal 2022 peaks as a result of capacity additions and improved service levels. The increase in gross profit is primarily due to the increase in sales volume and favorable pricing on pipe, on-site septic and allied products. ADS also competes with companies that produce concrete pipes, PVC pipes, and corrugated steel pipes for drainage purposes. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Try Margin of Safety Investing free for two weeks and get your first year for 20% off. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. Additional information related to this transaction will be included in a Current Report on Form 8-K, which the Company intends to file with the SEC after market-close today. Net sales increased $234.4 million, or 52.8%, to $678.2 million, as compared to $443.8 million in the prior year quarter. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. All preferred shares were converted to common shares within thirty days following the March 31, 2022 ESOP loan repayment; and the remaining shares of unallocated preferred stock will be allocated to the participants of the ESOP. The company has been striving to increase market share by investing in strategic regions. Insider Monkey Transcripts. Nicole Voss Will WMS price drop? Zacks Ranks stocks can, and often do, change throughout the month. Teleconference: To participate in the live teleconference, participants may register at https://www.netroadshow.com/events/login?show=4a232ad6&confId=45958. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. ADS achieves high returns with an ROE of 27.6% and ROIC of 11%. Documentation, ADS Design Projects can be completed at less cost with high effectiveness with ADS's HDPE products as compared to heavier installations of concrete or steel pipes. & Education, Product Learn our 4-step investment process that top hedge funds use. ADS converts plastic from curbside recycling into pellets that are extruded into pipe designed to last up to 100 years, extending the lifecycle of plastic and eliminating waste. Webcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company's website at https://investors.ads-pipe.com/events-and-presentations. (614) 658-0050 $0.50 per share, and an increase next year of Weighted average common shares outstanding: LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS EQUITY, Current maturities of finance lease obligations, Deferred compensation unearned ESOP shares, Total liabilities, mezzanine equity and stockholders equity. Annual Report. This is well above the Building Products & Equipment industry's forward PE of 18. We are seeing extreme weather events throughout the world, bringing heavy rain and flooding to various areas. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank, Industry: Building Products - Miscellaneous. Learn more about Zacks Equity Research reports. Below you will find the stock price predictions for 2023, 2024. Basins and Manholes, Specialty That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The company achieved a 17% sales increase in the legacy ADS business and a 23% sales increase for the Infiltrator business (a 2019 acquisition). Michael Higgins I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. That makes the EPS growth particularly close to the yearly share price growth of 41%. For this reason, looking at a company's recent surprise history can be a great aid in forecasting the surprise likelihood of their next outing. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. I see the stock as a bit overvalued at the moment. The Polypropylene Recycling Coalition is focused on increasing access for people to recycle polypropylene through curbside recycling programs, ensuring more recycling processing facilities can sort the material successfully, and stimulating a robust end-market of high-quality recycled polypropylene for reuse in packaging. Our pipe directs water away from parking lots, freeways and fields so areas stay dry and neighborhoods stay safe. Trading stocks, options and other securities involves risk. Further, owners, employees, agents or representatives of Financhill are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory. International sales increased $59.9 million, or 36.3%, to $224.7 million, driven by double-digit sales growth in the Canadian, Mexican and Exports businesses. Advanced Drainage Systems is a leading provider of innovative water management solutions in the stormwater and on-site septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplace. list of growing companies with considerable, recent, insider buying. To ensure participants are connected for the full call, please register at least 10 minutes before the start of the call. Advanced Drainage Systems has risen higher in 22 of those 39 years over the subsequent 52-week period, corresponding to a historical accuracy of 56.41%, Based on the share price being below its 5, 20 & 50 day exponential moving averages, the current trend is considered strongly bearish and. I understand my credit card will be charged $7 today for 7 days of Platinum access. Please disable your ad-blocker and refresh. Over the next 52 weeks, Advanced Drainage Systems has on average historically risen by 29.6% based on the past 39 years of stock performance. Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. According to analysts' consensus price target of $124.60, Advanced Drainage Systems has a forecasted upside of 40.6% from its current price of $88.62. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. The money flow [CMF] dropped off in late July, suggesting that the stock price may follow soon with a dip. It's nice to see that Advanced Drainage Systems shareholders have received a total shareholder return of 12% over the last year. Is WMS stock price going to drop? This partnership continues ADS work in creating and sustaining positive social change through a circular economy. Leach, Inlets, Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. David is not a registered investment adviser. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. Question Box: The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. 614-658-0050. Click here to find out more. Fittings, Airports & These extreme heavy rain events have a high potential of increasing demand for ADS's products. Accordingly, management believes that Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures. There are likely to be ongoing drainage projects in residential and non-residential settings to help minimize the effects of flooding. 89.740 They were engineers who had grown up on farms and saw an opportunity to develop new ways to manage water on . Is Advanced Drainage Systems Inc a profitable investment? Indeed, the share price is up a whopping 440% in that time. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. WMS is currently trading with a forward PE of 31.6. Have feedback on this article? Advanced Drainage Systems: Looks Strong For The Future, But Wait For A Pullback . - Try Now Risk-Free - Money-back guarantee! An industry leader of high performing, durable pipe built to provide you with innovative stormwater management solutions. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.