Advanced Drainage Systems, Inc. (WMS) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of Advanced Drainage Systems, Inc. (WMS) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 3 reasons to buy and 5 reasons to sell WMS stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about WMS stock:

  • Is WMS a buy or a sell?
  • Should I sell or hold WMS stock today?
  • Is WMS a good buy / investment?
  • What are WMS analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy WMS stock:

1. WMS profitability is improving. The YoY profit margin change was 1.95pp. See WMS profitability chart.

2. WMS forward dividend yield is 1.25%, higher than the industry (0.87%) and sector (0.51%) forward dividend yields. See WMS forward dividend chart.

3. WMS PEG ratio (P/E adjusted for growth) is 0.83, and it’s low compared to its industry peers’ PEG ratios. See WMS PEG chart.

Now that you understand the bull case, let’s look at the reasons to sell WMS stock (i.e., the bear case):

1. WMS quarterly revenue growth was -0.80%, lower than the industry and sector average revenue growth (3.06% and 4.40%, respectively). See WMS revenue growth chart.

2. WMS forward P/E ratio is 19.31, and it’s high compared to its industry peers’ P/E ratios. See WMS forward P/E ratio chart.

3. WMS Price/Book ratio is 3.95, and it’s high compared to its industry peers’ P/B ratios. See WMS forward Price/Book ratio chart.

4. WMS Price/Sales ratio is 1.10, and it’s high compared to its industry peers’ P/S ratios. See WMS forward Price/Sales ratio chart.

5. WMS short interest (days to cover the shorts) ratio is 4.53. The stock garners more short interest than the average industry, sector or S&P 500 stock. See WMS short interest ratio chart.

Now let's look at the key statistics for WMS:

Metrics WMS
Price $27.65
Average Price Target / Upside $28.75 / 3.98%
Average Analyst Rating Hold
Industry Rubber & Plastics
Sector Consumer Cyclical
Number of Employees 4,400
Market Cap $1.57B
Forward P/E Ratio 20.05
Price/Book Ratio 1.15
PEG 0.9
Revenue (TTM) $1.36B
YoY Quarterly Revenue Growth -0.8%
Profit Margin 5.21%

What are your thoughts on WMS?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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