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Advanced Drainage SystemsSTU:6DA -2.50%86 Pretax Margin % is 5.83% as of Mar. 2026, which is 61% below its 10-year median of 14.80. GuruFocus rates STU:6DA with a GF Score™ of 86/100 and a GF Value™ of €128.77 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,764 Construction companies, Advanced Drainage Systems ranks better than 88.61% on this metric.
The historical rank and industry rank for Advanced Drainage Systems's Pretax Margin % or its related term are showing as below:
STU:6DA'
s Pretax Margin % Range Over the Past 10 Years
Min: -10.73 Med: 14.8 Max: 23.2
Current: 18.35
STU:6DA's Pretax Margin % is ranked better than 88.61% of 1764
companies
in the Construction industry
Industry Median: 5.47
vs STU:6DA: 18.35
Advanced Drainage Systems (STU:6DA) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Advanced Drainage Systems Pretax Margin % Related Terms
Advanced Drainage Systems Pretax Margin % 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.
STU:6DA vs SPXC, OC, AAON: Pretax Margin % Comparison
For the Building Products & Equipment subindustry, Advanced Drainage Systems's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's Pretax Margin % falls into.
* 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 (STU:6DA) has a Pretax Margin % of 5.83% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Advanced Drainage Systems and its competitors. This is 61% below median its historical median of 14.80. According to the industry distribution chart, Advanced Drainage Systems ranks #201 out of 1764 companies in the Construction industry, placing it in the top 11.4%.
Is Advanced Drainage Systems' Pretax Margin % too high?
Advanced Drainage Systems' current Pretax Margin % of 5.83% is 61% below median its 10-year median of 14.80. The Construction industry median Pretax Margin % is 5.47. Advanced Drainage Systems' value of 5.83% is 6.6% above this industry median. Based on the distribution chart, Advanced Drainage Systems ranks #201 out of 1764 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Drainage Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' Pretax Margin % compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #201 out of 1764 companies for Pretax Margin %. This places Advanced Drainage Systems in the top 11% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.47. Advanced Drainage Systems' value of 5.83% is 6.6% above this benchmark. While the company's 10-year median is 14.80 vs. the industry median of 5.47, Advanced Drainage Systems has consistently been above 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 Pretax Margin % for a Construction company?
The median Pretax Margin % among Construction companies is 5.47, based on 1,764 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Drainage Systems's current Pretax Margin % of 5.83% is 6.6% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median Pretax Margin % is 5.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Drainage Systems's current Pretax Margin % is 5.83%, which is 61% below median its own 10-year median of 14.80. 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 (STU:6DA) is currently considered Fairly Valued. The stock's GF Value™ is €128.77, compared to a current price of €128.90 — trading 0.1% above its estimated fair value. The current Pretax Margin % is 5.83%, which is 61% below median its 10-year median of 14.80 and 6.6% above the Construction industry median of 5.47. Advanced Drainage Systems' overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Advanced Drainage Systems (STU:6DA), the current Pretax Margin % is 5.83% 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 (STU:6DA) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Drainage Systems stock appears to be overvalued.
The current stock price of €128.90 is trading 0.1% above its estimated GF Value™ of €128.77.
GuruFocus considers Advanced Drainage Systems to be Fairly Valued.
Key valuation signals for STU:6DA:
Pretax Margin %: 5.83% (61% below median its 10-year median of 14.80)
GF Value™: €128.77 vs. price of €128.90 (0.1% above fair value)
Industry Position: 6.6% above the Construction median (#201 of 1764)
No single metric tells the full story. See the STU:6DA 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.
86GF Score
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