ScoreWhy is Advanced Drainage Systems, Inc. ?
1
High Management Efficiency with a high ROCE of 27.61%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.22 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 10.54% and Operating profit at 21.56%
- DEBT-EQUITY RATIO (HY) Lowest at 45.02 %
- DIVIDEND PER SHARE(HY) Highest at USD 7.79
- CASH AND EQV(HY) Highest at USD 1,101.59 MM
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Advanced Drainage Systems, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Advanced Drainage Systems, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Advanced Drainage Systems, Inc.
19.89%
-0.16
40.44%
S&P 500
22.24%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.38%
EBIT Growth (5y)
15.45%
EBIT to Interest (avg)
9.59
Debt to EBITDA (avg)
1.22
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
1.04
Tax Ratio
23.93%
Dividend Payout Ratio
11.12%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
27.61%
ROE (avg)
32.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
5.36
EV to EBIT
16.48
EV to EBITDA
12.61
EV to Capital Employed
4.78
EV to Sales
3.70
PEG Ratio
NA
Dividend Yield
0.52%
ROCE (Latest)
29.00%
ROE (Latest)
23.09%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 819.06 MM
DIVIDEND PER SHARE(HY)
Highest at USD 8.43
DIVIDEND PAYOUT RATIO(Y)
Highest at 42.94%
CASH AND EQV(HY)
Highest at USD 1,231.2 MM
-12What is not working for the Company
ROCE(HY)
Lowest at 24.08%
RAW MATERIAL COST(Y)
Grown by 6.11% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 83.99 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.77 times
NET SALES(Q)
At USD 676.76 MM has Fallen at -9.44%
INTEREST(Q)
Highest at USD 25.14 MM
PRE-TAX PROFIT(Q)
At USD 115.26 MM has Fallen at -24.26%
EPS(Q)
Lowest at USD 0.42
Here's what is working for Advanced Drainage Systems, Inc.
Dividend per share
Highest at USD 8.43 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 819.06 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Cash and Eqv
Highest at USD 1,231.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 42.94%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 59.82 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Advanced Drainage Systems, Inc.
Interest
At USD 25.14 MM has Grown at 11.36%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Net Sales
At USD 676.76 MM has Fallen at -9.44%
over average net sales of the previous four periods of USD 747.34 MMMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Interest
Highest at USD 25.14 MM
in the last five periods and Increased by 11.36% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
At USD 115.26 MM has Fallen at -24.26%
over average net sales of the previous four periods of USD 152.17 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
EPS
Lowest at USD 0.42
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 83.99 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.77 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 6.11% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.29 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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