Advanced Drainage Systems, Inc. 🇺🇸
WMS • Semiconductors • USA
⚡ 83.0/100
Wide Moat Score™
$136.99
+0.0% (24H)
Fundamental Snapshot • Market Cap: $10.3B
PEG Ratio
1.05x
GARP / VALUE
Forward P/E
21.7x
GROWTH FAIR
Revenue Growth YoY
+20.6%
ROBUST EXPANSION
Gross Margin
38.6%
MODERATE
Free Cash Flow
$327.3M
CASH FORTRESS
Debt / EBITDA
1.9x
SOLVENT BALANCE
📊 Proprietary 12-Point Fundamental Audit
| Audit Dimension | Benchmark Criterion | WMS Actual | Evaluation |
|---|---|---|---|
| 1. Economic Moat Strength | Software lock-in / high switching barrier / patent moat | Moat Score 83.0/100 | ✅ WIDE MOAT |
| 2. Pricing Power & Margins | Gross Margin > 40% sustainable | 38.6% Gross Margin | ⚠️ MODERATE |
| 3. Revenue Acceleration | YoY Top-Line Growth > 15% | +20.6% YoY | ✅ PASSED |
| 4. Peter Lynch PEG Ratio | PEG < 1.2x (Growth at a Reasonable Price) | 1.05x PEG Ratio | ✅ PASSED |
| 5. Fortress Balance Sheet | Debt / EBITDA < 2.5x | 1.9x Net Leverage | ✅ PASSED |
| 6. Free Cash Flow Generation | Positive and compounding FCF | $327.3M Free Cash Flow | ✅ PASSED |
| 7. Multiple vs Sector Median | Forward P/E reasonable vs earnings growth | Forward P/E: 21.7x | ✅ ATTRACTIVE MULTIPLE |
| 8. Management & Insider Ownership | Insider Ownership > 3% | 7.2% Insider Equity | ✅ ALIGNED |
| 9. Superinvestor Whale Backing | Held by Top 25 13F Wall St Whales | Institutional Superinvestor Interest | ℹ️ SCREENED |
| 10. Secular Industry Tailwinds | Exposure to multi-year compound themes | Semiconductors sector expansion | ✅ PASSED |
| 11. Trailing P/E Multiple | Historical earnings multiple sanity | Trailing P/E: 23.3x | ✅ PASSED |
| 12. Overall Moat Conviction | Composite algorithmic evaluation | Overall Score: 83.0/100 | ✅ HIGH CONVICTION |
📝 MoatPicks Investment Thesis
Competitive Moat Breakdown: High-quality compounder passing 9/9 fundamental checks. Strong balance sheet with Forward PER compression (21.7x vs 23.3x) and robust Free Cash Flow generation.
Valuation Verdict: Trading at a Forward P/E of 21.7x and PEG ratio of 1.05x, Advanced Drainage Systems, Inc. satisfies core fundamental screens for quality and durability.