Advanced Drainage Systems, Inc. cash flow to debt ratio of 45.68% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Advanced Drainage Systems, Inc.'s free cash flow has increased 54.47% from $368.55M last year to $569.29M, signaling increasing performance

Advanced Drainage Systems, Inc.'s debt to equity ratio is 0.93, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Advanced Drainage Systems, Inc.'s debt has increased relative to shareholder equity from 0.89 last year to 0.93 today, signaling weakened financials

Advanced Drainage Systems, Inc. has a net debt to EBITDA ratio of 1.80x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Advanced Drainage Systems, Inc.'s interest coverage ratio of 7.41 indicates that earnings with good margin can cover interest payments on company debt

Advanced Drainage Systems, Inc.'s profit margin has decreased (-9.80%) in the last year from 15.50% to 13.98%, signaling decreasing performance

Advanced Drainage Systems, Inc.'s short-term assets of $1.23G exceed its short-term liabilities of $509.47M

Advanced Drainage Systems, Inc.'s return on assets of 9.47% is higher than the 5.00% threshold, indicating efficient asset utilization

Advanced Drainage Systems, Inc.'s return on equity of 22.43%, is higher than 15.00%, indicating good performance

Advanced Drainage Systems, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Advanced Drainage Systems, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Advanced Drainage Systems, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Advanced Drainage Systems, Inc. has a free cash flow yield of 4.92%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Advanced Drainage Systems, Inc.'s yearly earnings has decreased -5.27% since last year from $450.17M to $426.46M, signaling decreasing performance

Advanced Drainage Systems, Inc.'s yearly revenue has increased 5.03% since last year from $2.90G to $3.05G, signaling increasing performance

ROIC 13.02% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Advanced Drainage Systems, Inc.'s 3-year revenue CAGR of -0.23% is negative, indicating declining revenue over the past 3 years

Advanced Drainage Systems, Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Advanced Drainage Systems, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Advanced Drainage Systems, Inc. is overvalued relative to its fair value price of 68.36 based on Discounted Cash Flow model

Advanced Drainage Systems, Inc. has an earnings yield of 3.63%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Advanced Drainage Systems, Inc. is overvalued relative to its fair value price of 65.09 based on EBITDA multiple model

Advanced Drainage Systems, Inc. has an EV/EBITDA ratio of 15.06x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Advanced Drainage Systems, Inc. is undervalued relative to its fair value price of 169.31 based on Earnings Fair Value model

Advanced Drainage Systems, Inc. has no meaningful EPS growth rate; PEG ratio cannot be computed.

Advanced Drainage Systems, Inc. has a price-to-book ratio of 6.01x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Advanced Drainage Systems, Inc. has a price-to-sales ratio of 3.85x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue