Advanced Drainage Systems, Inc. (NYSE:WMS) Plans Quarterly Dividend of $0.20

Key Points

• Advanced Drainage Systems declared a $0.20 quarterly dividend, payable December 15 to shareholders of record December 1. That equates to $0.80 annually and a 0.6% yield.
• The dividend appears well covered: the current payout ratio is 12.7%, and analysts expect a 10.8% payout ratio next year. The company has raised its dividend in each of the past year.
• Quarterly EPS of $1.88 topped analyst estimates of $1.81, while revenue of $889.4 million fell short of estimates of $921.8 million; revenue was up 4.6% year over year.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) announced a quarterly dividend on Thursday, November 5th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $0.20 per share by the construction company on Tuesday, December 15th. This represents a $0.80 annualized dividend and a yield of 0.6%. The ex-dividend date is Tuesday, December 1st.

Advanced Drainage Systems has raised its dividend by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 1 years. Advanced Drainage Systems has a payout ratio of 12.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Advanced Drainage Systems to earn $7.42 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 10.8%.

Advanced Drainage Systems Stock Performance

NYSE WMS traded down $20.77 during trading on Thursday, reaching $123.30. The company's stock had a trading volume of 2,726,196 shares, compared to its average volume of 825,407. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The firm has a market capitalization of $9.30 billion, a price-to-earnings ratio of 21.29, a price-to-earnings-growth ratio of 1.56 and a beta of 1.30. Advanced Drainage Systems has a 12 month low of $120.14 and a 12 month high of $179.32. The firm has a 50 day moving average price of $130.70 and a 200 day moving average price of $143.43.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its earnings results on Thursday, November 5th. The construction company reported $1.88 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.81 by $0.07. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The firm had revenue of $889.41 million for the quarter, compared to analyst estimates of $921.79 million. During the same quarter in the prior year, the business posted $1.97 EPS. The business's revenue was up 4.6% compared to the same quarter last year. As a group, equities analysts anticipate that Advanced Drainage Systems will post 6.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Advanced Drainage Systems

A number of large investors have recently modified their holdings of WMS. BlackRock Inc. acquired a new position in shares of Advanced Drainage Systems in the 2nd quarter worth approximately $1,172,482,000. Bamco Inc. NY bought a new stake in shares of Advanced Drainage Systems in the 2nd quarter valued at $106,800,000. Hill City Capital LP acquired a new stake in shares of Advanced Drainage Systems during the second quarter worth $75,341,000. Bank of New York Mellon Corp acquired a new stake in shares of Advanced Drainage Systems during the second quarter worth $74,104,000. Finally, Pictet Asset Management Holding SA raised its stake in Advanced Drainage Systems by 33.4% during the third quarter. Pictet Asset Management Holding SA now owns 1,505,017 shares of the construction company's stock worth $190,712,000 after buying an additional 377,043 shares during the last quarter. Institutional investors and hedge funds own 89.83% of the company's stock.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc NYSE: WMS is a manufacturer of water management products and solutions. The company produces thermoplastic corrugated pipe, fittings, drainage structures, stormwater chambers and related products used to manage the collection, conveyance, storage and treatment of water.

Its products serve a range of markets, including residential, commercial, agricultural, infrastructure and environmental applications. Advanced Drainage Systems supplies solutions for stormwater management, septic and wastewater systems, highway and road construction, land development, agriculture and erosion control.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers through a manufacturing and distribution network primarily covering the United States and Canada, with additional international operations.

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