Compliance Status

Halal

Screened on Oct 15, 2026 · AAOIFI Standard 21

A

Very Good

81Score

Is Advanced Drainage Systems, Inc. (WMS) halal? Halal. Based on AAOIFI screening, Advanced Drainage Systems, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 81/100 (Grade: A).

Quote this verdict

HalalScreener rates Advanced Drainage Systems, Inc. (WMS) Halal, 81/100, grade A under AAOIFI Standard 21, screened Oct 15, 2026. Source: https://halalscreener.app/en/stock/WMS

Business activity

What the company sells is permissible.

Passed

Company debt

Within the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

16.8% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

You can own WMS

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened WMS's prohibited income, but the exact share you would need to purify is part of Pro.

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Advanced Drainage Systems, Inc.

WMS: Is Advanced Drainage Systems, Inc. Halal?

Advanced Drainage Systems, Inc.

NYSEBasic MaterialsUS

$128.20

Market Cap: 9.7B

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About Advanced Drainage Systems, Inc.

Advanced Drainage Systems, Inc., established in Hilliard, Ohio in 1966, is a leading provider of innovative water management solutions. The company specializes in the design, manufacturing, and global distribution of thermoplastic corrugated pipes and related drainage products, primarily targeting the underground construction and infrastructure sectors across the United States, Canada, Mexico, and other international territories. Its operations are structured across four key segments: Pipe, International, Infiltrator, and Allied Products & Other. ADS offers a wide array of products, including single, double, and triple-wall corrugated pipes made from polypropylene and polyethylene. Beyond basic piping, their extensive catalog features sophisticated water management systems such as plastic leachfield chambers, EZflow synthetic aggregate bundles, advanced mechanical aeration wastewater solutions, septic tanks and accessories, and integrated treatment and dispersal units. Furthermore, the company supplies allied products like storm retention, detention, and septic chambers, polyvinyl chloride drainage structures, various fittings, and water quality filters and separators. ADS also distributes construction fabrics and other geosynthetic materials vital for soil stabilization, reinforcement, filtration, erosion control, and sub-surface drainage, alongside drainage grates. These products cater to a broad spectrum of applications, including residential, non-residential, agricultural, and large-scale infrastructure projects, supported by approximately 38 distribution centers.

Sector: Basic Materials · Industry: Construction Materials

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 15, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2027Data source: EDGAR
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Frequently Asked Questions

Is Advanced Drainage Systems, Inc. (WMS) halal to invest in?
Based on AAOIFI Standard 21 screening, Advanced Drainage Systems, Inc. (WMS) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Advanced Drainage Systems, Inc. get a A compliance rating?
Advanced Drainage Systems, Inc. (WMS) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 16.8% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Advanced Drainage Systems, Inc.'s Shariah verdict?
Advanced Drainage Systems, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Advanced Drainage Systems, Inc. re-screened for Shariah compliance?
Advanced Drainage Systems, Inc. (WMS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 15, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.