Advanced Drainage Systems, Inc.
WMS Industrials Building Products & Equipment
Advanced Drainage Systems, Inc.’s revenue for fiscal 2026 (year ended March 2026) was $3.1 billion, up 5.03% from fiscal 2025. In the quarter to June 2026, revenue grew 20.6%, EPS grew 18.9%, free cash flow fell 8.28% and total debt rose 23.8%, each against the same quarter a year earlier. Dividend growth for ten consecutive years.
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Advanced Drainage Systems, Inc. (WMS) Altman Z-score
Advanced Drainage Systems, Inc.'s Altman Z-score for fiscal 2026 is 4.34, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 4.34 | (0.26) |
| FY2025 | 4.60 | (1.66) |
| FY2024 | 6.26 | 1.80 |
| FY2023 | 4.46 | (0.69) |
| FY2022 | 5.15 | 0.47 |
| FY2021 | 4.68 | 3.34 |
| FY2020 | 1.34 | (2.35) |
| FY2019 | 3.69 | 0.51 |
| FY2018 | 3.18 | 0.61 |
| FY2017 | 2.57 | 0.00 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.16 | — | 0.19 | |
| Retained earnings / total assets | 0.41 | — | 0.58 | |
| EBIT / total assets | 0.14 | — | 0.45 | |
| Market value of equity / total liabilities | 4.06 | — | 2.44 | |
| Sales / total assets | 0.68 | — | 0.68 | |
| Altman Z-score | Safe zone | 4.34 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.08 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| AWI Armstrong World Industries, Inc. compare | 7.8× |
| LII Lennox International, Inc. compare | 7.5× |
| AAON AAON, Inc. compare | 6.9× |
| SPXC SPX Technologies, Inc. compare | 5.6× |
| CSL Carlisle Companies Incorporated compare | 5.1× |
| WMS Advanced Drainage Systems, Inc. | 4.3× |
| MAS Masco Corporation compare | 3.9× |
| BLDR Builders FirstSource, Inc. compare | 2.7× |
| OC Owens Corning Inc compare | 2.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets