Professional
Added to YB: 2026-09-17
Pitch date: 2026-06-30
WMS [bullish]
Advanced Drainage Systems, Inc.
Author Info
No bio for this author
Company Info
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in the United States, Canada, and internationally.
Market Cap
$9.5B
Pitch Price
N/A
Price Target
N/A
Dividend
0.64%
EV/EBITDA
11.32
P/E
21.40
EV/Sales
3.44
Sector
Building Products
Category
growth
Baron Discovery Fund New Portfolio Holding: Advanced Drainage Systems, Inc.
WMS: Advanced Drainage Systems is a differentiated, lowest-cost stormwater and onsite wastewater products leader trading at roughly 12x fiscal 2027 EBITDA on potentially near-bottom-cycle earnings. Its unmatched manufacturing and logistics footprint and vertically integrated recycling operations underpin its competitive differentiation, while its high-teens share of a combined market the company estimates at roughly $16 billion leaves ample room to grow. Management outlined a credible path to revenue growth above 8% organically through 2030 and above 10% including acquisitions, while margin expansion partly depends on an eventual construction recovery.
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