The company has 843.84
M in debt with debt to equity (D/E) ratio of 0.81, which is OK given its current industry classification.
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.
We determine the current worth of Advanced Drainage Systems using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Advanced Drainage Systems based exclusively on its
fundamental and basic
technical indicators. By analyzing Advanced Drainage's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Advanced Drainage's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Advanced Drainage. We 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.
Advanced Drainage Systems Investment Alerts
Advanced investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Advanced Drainage Systems performance across your portfolios.Please check all
investment alerts for Advanced
Advanced Drainage Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Advanced value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Advanced Drainage competition to find
correlations between indicators driving the intrinsic value of Advanced.
Advanced Drainage Gross Profit
Advanced Drainage Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Advanced Drainage previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Advanced Drainage Gross Profit growth over the last 10 years. Please check Advanced Drainage's
gross profit and other
fundamental indicators for more details.
Breaking it down
Advanced Drainage Systems reported the last year's revenue of 1.91
B. Total Income to common stockholders was 169.42
M with profit before taxes, overhead, and interest of 497.54
M.
| 2014 | 2015 | 2020 | 2021 (projected) |
Interest Expense | 19.37 M | 18.46 M | 21.23 M | 22.4 M | Gross Profit | 205.11 M | 285.35 M | 256.82 M | 224.96 M |
Margins Breakdown
Advanced profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Advanced Drainage itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Advanced Drainage profit margins.
| Operating Margin | (6.35) |
| EBITDA Margin | 1.75 |
| Gross Margin | 17.76 |
| Profit Margin | (13.62) |
Advanced Drainage Average Assets is relatively stable at the moment. Also, Advanced Drainage Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment.
Are Advanced Drainage technical indicators showing a bounce back?
Latest total risk alpha is at -0.17. Advanced Drainage Systems currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of -0.01. However, we advise 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. 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 bullying 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.
Our Conclusion on Advanced Drainage
While some companies in the building products & equipment industry are either recovering or due for a correction, Advanced may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 20th of May 2021, our analysis shows that Advanced Drainage follows the market closely. The enterprise is
fairly valued and projects
low probability of bankruptcy for the next 2 years. Our current 90 days recommendation on the enterprise is
Strong Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Advanced Drainage Systems. Please refer to our
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