CluenexAdvanced Drainage Systems WMS
Advanced Drainage Systems scores average on business quality (5.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Advanced Drainage Systems does
Advanced Drainage Systems manufactures thermoplastic pipe and water management products, selling directly to contractors and municipalities for stormwater infrastructure. The company is pivoting toward integrated smart stormwater systems, showcased recently through its partnership with Brightstorm at WEFTEC 2026.
- What it does best
Advanced Drainage Systems converts recycled plastic into high-margin drainage pipe, delivering a gross margin of 38.6% that easily outpaces competitor CARR at 24.7%. This scale advantage in recycling creates a significant cost barrier for regional competitors.
- The main risk
Net debt climbed to $1.5 billion alongside a debt-to-equity ratio of 0.9, leaving the balance sheet vulnerable if municipal project spending slows down.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins reach 21.2% with a 23.4% return on equity, proving that manufacturing scale efficiently drives profitability as volume expands.
Switching costs and a proprietary recycling network lock in municipal contractors, backed by an operating margin sitting in the 81st sector percentile.
Revenue grew 5.0% to $3.2B, showing a modest recovery compared to the flat history seen in annual summaries.
Debt-to-equity sits at 0.9 with interest coverage at 7.0x, generating $550.0M in free cash flow, pointing to a balanced financial position.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on WMS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Advanced Drainage Systems scores average on the Cluenex quality check (5.5 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026.
See WMS today
- Today's verdict on WMS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Advanced Drainage Systems (WMS)”, https://cluenex.com/stocks/wms/, data as of Oct 10, 2026.