WMS - Advanced Drainage Systems: Superb Economics Fully Captured At Current Multiples Seek Pullback First
2024-07-09 05:55:28 ET
Summary
- Advanced Drainage Systems is a global manufacturer of water management solutions with a strong patent portfolio.
- WMS stock performance has been strong, but starting valuations are lofty at current multiples.
- Embedded expectations are exquisitely high, leaving little margin for error or safety at the current value.
Investment thesis
Based in Hilliard, Ohio, Advanced Drainage Systems, Inc. (WMS) is a global manufacturer of innovative water management solutions. It predominantly operates in the stormwater and septic wastewater markets, but the company's full suite of products is also pivotal across construction and agricultural applications globally. WMS is further distinguished by its extensive patent portfolio, which provides competitive advantages via capital-light business returns in the domain of water management technologies....
Advanced Drainage Systems: Superb Economics Fully Captured At Current Multiples, Seek Pullback First