What changed
$WMS — BUY 📊
Advanced Drainage Systems, Inc.
🎯 Q1 FY26 | Rev $1B | EPS $1.07 vs $0.97 🟢
💡 Consensus models only 8% EPS growth for FY2027, but company's backlog and end-market strength suggest 15%+ growth is achievable. The market is pricing in a cyclical peak, missing structural demand from infrastructure spending and stormwater regulations.
📉 Reward/Risk: 2.0:1
🏢 Business Quality: 8/10 - Dominant market share in stormwater drainage, essential non-discretionary infrastructure with high replacement needs, regulatory moat, and strong cash generation.
📊 Valuation: fair - Trading at 18.5x forward P/E and 11.0x EV/EBITDA, a premium to industrial peers at 16x and 10x, but justified by superior growth.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/WMS0618