Advanced Stock Buy Hold or Sell Recommendation

WMS
 Stock
  

USD 87.45  1.19  1.34%   

Considering the 90-day investment horizon and your complete indifference towards market risk, our recommendation regarding Advanced Drainage Systems is 'Strong Buy'. Macroaxis provides Advanced Drainage buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WMS positions. The advice algorithm takes into account all of Advanced Drainage's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Advanced Drainage's buy-and-hold perspective. Check out Advanced Drainage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Advanced and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Advanced Drainage Systems.

Execute Advanced Drainage Buy or Sell Advice

The Advanced recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Advanced Drainage Systems. Macroaxis does not own or have any residual interests in Advanced Drainage Systems or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Advanced Drainage's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Advanced DrainageBuy Advanced Drainage
Strong Buy

Volatility

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Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon Advanced Drainage Systems has a Risk Adjusted Performance of (0.18), Jensen Alpha of (0.64), Total Risk Alpha of (0.72) and Treynor Ratio of (0.35)
Macroaxis provides advice on Advanced Drainage Systems to complement and cross-verify current analyst consensus on Advanced Drainage Systems. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Advanced Drainage is not overpriced, please confirm all Advanced Drainage Systems fundamentals, including its cash flow from operations, and the relationship between the cash and equivalents and beta . Given that Advanced Drainage Systems has a price to book of 6.59 X, we suggest you to validate Advanced Drainage Systems market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Advanced Drainage Trading Alerts and Improvement Suggestions

Advanced Drainage generated a negative expected return over the last 90 days
Advanced Drainage has high historical volatility and very poor performance
Over 86.0% of the company outstanding shares are owned by institutional investors
Latest headline from news.google.com: ADS Foundation Donates to the Florida Disaster Fund in Support of Hurricane Ian and Hurricane Nicole Recovery in the State - Marketscreener.com

Advanced Drainage Returns Distribution Density

The distribution of Advanced Drainage's historical returns is an attempt to chart the uncertainty of Advanced Drainage's future price movements. The chart of the probability distribution of Advanced Drainage stock daily returns describes the distribution of returns around its average expected value. We use Advanced Drainage Systems price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Advanced Drainage returns is essential to provide solid investment advice for Advanced Drainage.
Mean Return-0.54Value At Risk-4.63
Potential Upside4.63Standard Deviation4.26
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Advanced Drainage historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Advanced Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Advanced Drainage is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Advanced Drainage Systems backward and forwards among themselves. Advanced Drainage's institutional investor refers to the entity that pools money to purchase Advanced Drainage's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zurich Insurance Group LtdCommon Shares570.3 K70.9 M
Zurich Insurance Group LtdCommon Shares554.8 K50 M
Zurich Insurance Group LtdCommon Shares711.9 K84.6 M
Zurich Insurance Group LtdCommon Shares678.7 K92.4 M
Zurich Insurance Group LtdCommon Shares429.6 K46.5 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares107 K13.3 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares105.5 K9.5 M
Note, although Advanced Drainage's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Advanced Drainage Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(94.95 M)(117.66 M)1.01 B(354.58 M)(251.07 M)(257.68 M)
Net Cash Flow from Investing(30.45 M)(42.54 M)(1.15 B)(77.87 M)(198.83 M)(214.53 M)
Net Cash Flow from Operations137.12 M151.68 M306.19 M452.22 M274.89 M296.59 M

Advanced Drainage Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Advanced Drainage or Building Products sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Advanced Drainage's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Advanced stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.64
β
Beta against NYSE Composite1.56
σ
Overall volatility
4.31
Ir
Information ratio -0.14

Advanced Drainage Volatility Alert

Advanced Drainage Systems exhibits very low volatility with skewness of -2.66 and kurtosis of 16.25. However, we advise investors to further study Advanced Drainage Systems technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Advanced Drainage's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Advanced Drainage's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Advanced Drainage Fundamentals Vs Peers

Comparing Advanced Drainage's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Advanced Drainage's direct or indirect competition across all of the common fundamentals between Advanced Drainage and the related equities. This way, we can detect undervalued stocks with similar characteristics as Advanced Drainage or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Advanced Drainage's fundamental indicators could also be used in its relative valuation, which is a method of valuing Advanced Drainage by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Advanced Drainage to competition
FundamentalsAdvanced DrainagePeer Average
Return On Equity0.46 %(0.31) %
Return On Asset0.15 %(0.14) %
Profit Margin0.14 %(1.27) %
Operating Margin0.22 %(5.51) %
Current Valuation8.75 B16.62 B
Shares Outstanding82.86 M571.82 M
Shares Owned by Insiders19.10 %10.09 %
Shares Owned by Institutions85.94 %39.21 %
Number of Shares Shorted3.34 M4.71 M
Price to Earning40.06 X28.72 X
Price to Book6.59 X9.51 X
Price to Sales2.30 X11.42 X
Revenue2.77 B9.43 B
Gross Profit819.57 M27.38 B
EBITDA556.76 M3.9 B
Net Income271.33 M570.98 M
Cash and Equivalents463.7 M2.7 B
Cash per Share5.55 X5.01 X
Total Debt908.71 M5.32 B
Debt to Equity1.30 %48.70 %
Current Ratio2.78 X2.16 X
Book Value Per Share14.19 X1.93 K
Cash Flow from Operations274.89 M971.22 M
Short Ratio3.05 X4.00 X
Earnings Per Share5.42 X3.12 X
Price to Earnings To Growth1.66 X4.89 X
Target Price120.83
Number of Employees5.63 K18.84 K
Beta1.27-0.15
Market Capitalization7.34 B19.03 B
Total Asset2.65 B29.47 B
Retained Earnings(120.12 M)9.33 B
Working Capital187.38 M1.48 B
   Advanced Drainage exotic insider transaction detected [view details]

Advanced Drainage Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Advanced . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Advanced Drainage Buy or Sell Advice

When is the right time to buy or sell Advanced Drainage Systems? Buying financial instruments such as Advanced Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables200.03 M236.19 M341.75 M368.73 M
Inventories282.4 M300.96 M494.32 M533.35 M

Use Investing Ideas to Build Portfolios

In addition to having Advanced Drainage in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Farming Thematic Idea Now

Farming
Farming Theme
Companies producing farming products and providing services for farmers. The Farming theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Farming Theme or any other thematic opportunities.
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Check out Advanced Drainage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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Is Advanced Drainage's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advanced Drainage. If investors know Advanced will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advanced Drainage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.045
Market Capitalization
7.3 B
Quarterly Revenue Growth YOY
0.252
Return On Assets
0.1538
Return On Equity
0.4648
The market value of Advanced Drainage Systems is measured differently than its book value, which is the value of Advanced that is recorded on the company's balance sheet. Investors also form their own opinion of Advanced Drainage's value that differs from its market value or its book value, called intrinsic value, which is Advanced Drainage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advanced Drainage's market value can be influenced by many factors that don't directly affect Advanced Drainage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Advanced Drainage's value and its price as these two are different measures arrived at by different means. Investors typically determine Advanced Drainage value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advanced Drainage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.