Advanced Drainage SystemsMEX:WMS 59 Interest Coverage is 3.24 as of Mar. 2026, which is 55% below its 10-year median of 7.20. GuruFocus rates MEX:WMS with a GF Score™ of 59/100 and a GF Value™ of MXN1,996.53 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,354 Construction companies, Advanced Drainage Systems ranks worse than 53.18% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Advanced Drainage Systems's
Operating Income
for the
three
months ended in Mar. 2026 was MXN1,467 Mil. Advanced Drainage Systems's Interest Expense for the
three
months ended in Mar. 2026 was MXN-453 Mil.
Advanced Drainage Systems's interest coverage for the quarter that ended in Mar. 2026 was 3.24.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Advanced Drainage Systems's Interest Coverage or its related term are showing as below:
MEX:WMS'
s Interest Coverage Range Over the Past 10 Years
Min: 4.86 Med: 7.2 Max: 12.38
Current: 6.8
MEX:WMS's Interest Coverage is ranked worse than 53.18% of 1354
companies
in the Construction industry
Industry Median: 7.865
vs MEX:WMS: 6.80
Advanced Drainage Systems (MEX:WMS) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Advanced Drainage Systems Interest Coverage Related Terms
Advanced Drainage Systems Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:WMS vs SPXC, OC, AAON: Interest Coverage Comparison
For the Building Products & Equipment subindustry, Advanced Drainage Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advanced Drainage Systems Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's Interest Coverage falls into.
Advanced Drainage Systems Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Advanced Drainage Systems (MEX:WMS) has a Interest Coverage of 3.24 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advanced Drainage Systems and its competitors. This is 55% below median its historical median of 7.20. Over the past decade, Advanced Drainage Systems' Interest Coverage has ranged from 4.86 to 12.38. According to the industry distribution chart, Advanced Drainage Systems ranks #720 out of 1354 companies in the Construction industry, placing it in the top 53.2%.
Is Advanced Drainage Systems' Interest Coverage too high?
Advanced Drainage Systems' current Interest Coverage of 3.24 is 55% below median its 10-year median of 7.20. Over the past 10 years, this metric has ranged from a low of 4.86 to a high of 12.38. The Construction industry median Interest Coverage is 7.87. Advanced Drainage Systems' value of 3.24 is 58.8% below this industry median. Based on the distribution chart, Advanced Drainage Systems ranks #720 out of 1354 companies in the Construction industry, which is below the industry midpoint. Overall, Advanced Drainage Systems has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' Interest Coverage compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #720 out of 1354 companies for Interest Coverage. This places Advanced Drainage Systems in the lower half of its industry. The industry median Interest Coverage is 7.87. Advanced Drainage Systems' value of 3.24 is 58.8% below this benchmark. Historically, Advanced Drainage Systems' own Interest Coverage has ranged from 4.86 to 12.38 over the past decade. While the company's 10-year median is 7.20 vs. the industry median of 7.87, Advanced Drainage Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Drainage Systems's current Interest Coverage of 3.24 is 58.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Drainage Systems's current Interest Coverage is 3.24, which is 55% below median its own 10-year median of 7.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Drainage Systems stock overvalued right now?
Based on GuruFocus' analysis, Advanced Drainage Systems (MEX:WMS) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,996.53, compared to a current price of MXN2,100.00 — trading 5.2% above its estimated fair value. The current Interest Coverage is 3.24, which is 55% below median its 10-year median of 7.20 and 58.8% below the Construction industry median of 7.87. Advanced Drainage Systems' overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current Interest Coverage is 3.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advanced Drainage Systems (MEX:WMS) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Drainage Systems stock appears to be overvalued.
The current stock price of MXN2,100.00 is trading 5.2% above its estimated GF Value™ of MXN1,996.53.
GuruFocus considers Advanced Drainage Systems to be Fairly Valued.
Key valuation signals for MEX:WMS:
Interest Coverage: 3.24 (55% below median its 10-year median of 7.20)
GF Value™: MXN1,996.53 vs. price of MXN2,100.00 (5.2% above fair value)
Industry Position: 58.8% below the Construction median (#720 of 1354)
No single metric tells the full story. See the MEX:WMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Drainage Systems Inc designs, manufactures and markets water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions for use in the construction and agriculture markets. The company's products are used across a broad range of end markets and applications, including non-residential, residential, infrastructure and agriculture applications. It has two reportable segments: Stormwater and Wastewater. It derives the majority of revenue from the Stormwater segment, which manufactures and markets thermoplastic corrugated pipe and complementary products, including single wall pipe, N-12 HDPE pipe, polypropylene pipe, StormTech, Nyloplast, Inserta Tee, water quality filters and structures, and NDS channel drains, and access boxes.
59GF Score
Get the complete analysis for MEX:WMS
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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