Peeling Back The Layers: Exploring Advanced Drainage Systems Through Analyst Insights

Advanced Drainage Systems WMS has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $195.17, with a high estimate of $202.00 and a low estimate of $187.00. This upward trend is evident, with the current average reflecting a 1.83% increase from the previous average price target of $191.67.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Advanced Drainage Systems. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Advanced Drainage Systems. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Advanced Drainage Systems compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Advanced Drainage Systems's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Advanced Drainage Systems analyst ratings.

Unveiling the Story Behind Advanced Drainage Systems

Advanced Drainage Systems Inc is engaged in designing, manufacturing, and marketing thermoplastic corrugated pipe and related water management products in North and South America, and Europe. The company's operating segment includes Pipe; Infiltrator; International and Allied Products and Other. It generates maximum revenue from the Pipe segment. The company serves Agriculture; Aviation and Military; Mining; Residential; Transportation; Healthcare and Education and others.

Financial Insights: Advanced Drainage Systems

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Advanced Drainage Systems's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 5.87%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Advanced Drainage Systems's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.5% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Advanced Drainage Systems's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 7.7%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 2.95%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Advanced Drainage Systems's debt-to-equity ratio stands notably higher than the industry average, reaching 1.08. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.