Advanced Story

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WMS -- USA Stock  

USD 70.58  0.32  0.45%

Let's first try to sum up why Advanced Drainage investors are seeking stability amid unprecedented economic uncertainty. On the 5th of November the company is traded for 67.84. Advanced Drainage has historical hype elasticity of -0.18. The average price elasticity to hype of competition is about 0.03. The entity is anticipated to decline in value after the next press release, with the price expected to drop to 69.03. The average volatility of headline impact on Advanced Drainage stock price is huge, making predictions on the news or social media along less reliable. The price depreciation on the next news is expected to be -0.32%, whereas the daily expected return is at this time at 0.38 percent. Considering the 30-days investment horizon, the next anticipated announcement will be in about 8 days.
Published over three weeks ago
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Is Advanced Drainage (NYSE:WMS) gaining more confidence from retail investors?
On a scale of 0 to 100, Advanced Drainage holds a performance score of 10. The firm shows a Beta (market volatility) of -0.0468, which signifies not very significant fluctuations relative to the market. Let's try to break down what Advanced's beta means in this case. As returns on the market increase, returns on owning Advanced Drainage are expected to decrease at a much lower rate. During the bear market, Advanced Drainage is likely to outperform the market. Although it is vital to follow Advanced Drainage historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Advanced Drainage technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please makes use of Advanced Drainage standard deviation, as well as the relationship between the value at risk and kurtosis to make a quick decision on whether Advanced Drainage price patterns will revert.
The successful prediction of Advanced Drainage stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Advanced Drainage Systems, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Advanced Drainage based on Advanced Drainage hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Advanced Drainage's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Advanced Drainage's related companies.

Use Technical Analysis to project Advanced expected Price

Advanced Drainage technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Advanced Drainage technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Advanced Drainage trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

The company reported the last year's revenue of 1.77 B. Total Income to common stockholders was 86.66 M with profit before taxes, overhead, and interest of 497.54 M.
 2017 2018 2019 (projected)
Long Term Debt to Equity0.790.561.47
Interest Coverage6.777.156.43

Cost of Revenue Breakdown

Advanced Drainage Cost of Revenue yearly trend continues to be relatively stable with very little volatility. Cost of Revenue is likely to drop to about 855.4 M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Advanced Drainage Cost of Revenue is relatively stable at the moment as compared to the past year. Advanced Drainage reported last year Cost of Revenue of 904.79 Million
2010
2012
2013
2014
2015
2019
2020
2010818.4 Million
2012829.14 Million
2013875.23 Million
2014974.96 Million
20151.01 Billion
2019904.79 Million
2020855.41 Million

Another setback for Advanced Drainage retail investors

Latest semi deviation is at 1.65. Advanced Drainage Systems currently demonstrates below-verage downside deviation. It has Information Ratio of 0.19 and Jensen Alpha of 0.52. 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 Final Takeaway

While few other entities in the building products & equipment industry are either recovering or due for a correction, Advanced Drainage may not be performing as strong as the other in terms of long-term growth potentials. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Advanced Drainage.

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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