TacticScaleWhat Advanced Drainage Systems Does & How It Makes Money (WMS)
Updated October 2026 · reflects Advanced Drainage Systems's latest reported financials
Maker of plastic drainage pipes and stormwater and septic systems. The company earns revenue by manufacturing and selling pipes, chambers, septic and treatment systems and fittings.
How Advanced Drainage Systems makes money
The company earns revenue by manufacturing and selling pipes, chambers, septic and treatment systems and fittings. It also resells purchased products such as geosynthetic fabrics. Sales go to non-residential, residential, agricultural and infrastructure customers through its network of distribution centers.
What Advanced Drainage Systems does
Advanced Drainage Systems, founded in 1966 and based in Hilliard, Ohio, makes thermoplastic corrugated pipes and water management products. It sells in the United States, Canada and other countries. The business has two segments. Stormwater covers single-, double- and triple-wall polypropylene and polyethylene pipes, retention/detention chambers, PVC drainage structures, fittings, water quality filters and separators, channel drains, catch basins and grates. Wastewater covers septic tanks, leachfield chambers, EZflow synthetic aggregate and combined treatment and dispersal systems such as AeroFin and Enviro-Septic. It also buys and distributes geosynthetic products, such as construction fabrics used for soil stabilization, erosion control and subsurface drainage. Its products are used in non-residential construction, housing, agriculture and infrastructure, so demand depends on building activity and spending on water management.
Products & services
- Corrugated polypropylene and polyethylene pipes
- Stormwater retention/detention chambers
- Septic tanks and leachfield chambers
- AeroFin and Enviro-Septic treatment systems
- EZflow synthetic aggregate bundles
- Water quality filters and separators
What is Advanced Drainage Systems worth?
On an owner-earnings DCF, Advanced Drainage Systems's most-likely value is about $149 versus a recent price near $126 (19% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$68) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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