What changed
$WMS — BUY 📊
Advanced Drainage Systems, Inc.
🎯 Q1 FY26 | Rev $1B | EPS $1.07 vs $0.97 🟢
💡 Consensus expects modest growth with a P/E of 21x, but fails to fully price in the long-duration demand from federal infrastructure spending and climate adaptation; WMS’s EPS could compound at 12-15% annually, justifying a return to 25x P/E.
📉 Reward/Risk: 2.06:1
🏢 Business Quality: 7/10 - Wide moat in stormwater drainage through scale, distribution, and material expertise, but demand is cyclical and raw material costs are a headwind.
📊 Valuation: fair — P/E ~21x FY25E, EV/EBITDA ~14x, both below 5-year historical averages of ~25x and ~17x, respectively; peer comparison places it at a discount...
🔮 Catalyst: Post-earnings analyst estimate revisions and NDR presentations reinforcing the raised outlook
💰 Entry: $147.12, stop $137, target $168
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/WMS0619