Advanced Drainage Systems Stock: A Deep Dive Into Analyst Perspectives (9 Ratings)

In the preceding three months, 9 analysts have released ratings for Advanced Drainage Systems WMS, presenting a wide array 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 $161.33, with a high estimate of $184.00 and a low estimate of $135.00. This current average has decreased by 9.07% from the previous average price target of $177.43.

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Advanced Drainage Systems by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Advanced Drainage Systems. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Advanced Drainage Systems compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Advanced Drainage Systems's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Advanced Drainage Systems's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Advanced Drainage Systems analyst ratings.

Get to Know Advanced Drainage Systems Better

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.

Understanding the Numbers: Advanced Drainage Systems's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Advanced Drainage Systems's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.31% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower 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 16.66% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 9.18%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Advanced Drainage Systems's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.73% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Advanced Drainage Systems's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.94.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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