Advanced Drainage Systems: Fully Valued

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About: Advanced Drainage Systems, Inc. (WMS)
by: Prasanna Rajagopal
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Prasanna Rajagopal
Long Only, Growth At Reasonable Price, Tech, Value
Summary

Manufacturing and transportation cost inflation pressuring EBITDA.

Costs may have abated to some extent in Q4 FY 2019.

Strong volume growth required to achieve EBITDA targets.

Population growth in Nevada, Texas, and North Carolina driving growth.

Advanced Drainage Systems (NYSE:WMS) has had a good recovery in its stock price since touching a low of $23.24 just before Christmas. It currently trades at $27.64 or a gain of about 15.6%