Advanced Story

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WMS -- USA Stock  

USD 57.95  1.37  2.31%

Advanced Drainage Accrued Expenses Turnover is relatively stable at the moment as compared to the past year. Advanced Drainage reported last year Accrued Expenses Turnover of 20.99. As of 08/05/2020, Cash and Equivalents Turnover is likely to grow to 18.71, while Revenue Per Employee is likely to drop slightly above 305 K. As many of us are excited about industrials space, it is fair to sum up Advanced Drainage Systems. We will evaluate why we are still optimistic in anticipation of a recovery. This post is to show some fundamental factors affecting Advanced Drainage's products and services. I will also report how it may impact the investing outlook for Advanced Drainage in September.
Published over a month ago
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Should you hold on to your Advanced Drainage position?
Over 89.0% of Advanced Drainage outstanding shares are owned by institutional investors. Institutional ownership of Advanced Drainage refers to the amount of Advanced Drainage equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Advanced, including its current ownership diagnostics.

And What about dividends?

A dividend is the distribution of a portion of Advanced Drainage earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Advanced Drainage dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Advanced one year expected dividend income is about $0.57 per share.
As of 09/23/2020, Preferred Dividends Income Statement Impact is likely to grow to about 4.3 M, while Payment of Dividends and Other Cash Distributions is likely to drop (20.2 M).
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact4.2 M4.3 M
Payment of Dividends and Other Cash Distributions-18.7 M-20.2 M
Dividend Yield 0.0081  0.006789 
Dividends per Basic Common Share 0.18  0.15 
Investing in dividend-paying stocks, such as Advanced Drainage Systems is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Advanced Drainage must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Advanced Drainage. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Advanced Drainage's Liquidity

Advanced Drainage financial leverage refers to using borrowed capital as a funding source to finance Advanced Drainage Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advanced Drainage financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Advanced Drainage's total debt and its cash.

How Advanced utilizes its cash?

To perform a cash flow analysis of Advanced Drainage, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Advanced Drainage is receiving and how much cash it distributes out in a given period. The Advanced Drainage cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Advanced Drainage Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Advanced Drainage reported last year Net Cash Flow from Operations of 306.19 Million

Breaking it down a bit more

Advanced Drainage retains a total of 69.74 Million outstanding shares. The majority of Advanced Drainage Systems outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Advanced Drainage to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Advanced Drainage. Please pay attention to any change in the institutional holdings of Advanced Drainage Systems as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
 2014 2015 2019 2020 (projected)
Interest Expense19.37 M18.46 M21.23 M22.4 M
Gross Profit205.11 M285.35 M256.82 M224.96 M

Ownership Breakdown

Retail Investors0.17

Possible September come-back of Advanced?

Latest treynor ratio is at -1.95. Advanced Drainage Systems currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.41. However, we do advice investors to further question Advanced Drainage Systems expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Advanced Drainage

While some other companies under the building products & equipment industry are still a bit expensive, Advanced Drainage may offer a potential longer-term growth to retail investors. On the whole, as of the 5th of August 2020, our analysis shows that Advanced Drainage moves indifferently to market moves. The enterprise is overvalued and projects below average chance of bankruptcy for the next 2 years. Our up-to-date 30 days 'Buy-Sell' recommendation on the enterprise is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Advanced Drainage Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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