Advanced Drainage SystemsMEX:WMS 61 Return-on-Tangible-Asset is 4.68% as of Mar. 2026, which is 73% below its 10-year median of 17.14. GuruFocus rates MEX:WMS with a GF Score™ of 61/100 and a GF Value™ of MXN2,070.97 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,779 Construction companies, Advanced Drainage Systems ranks better than 94.27% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Advanced Drainage Systems's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN2,373 Mil. Advanced Drainage Systems's average total tangible assets for the quarter that ended in Mar. 2026 was MXN50,660 Mil. Therefore, Advanced Drainage Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 4.68%.
The historical rank and industry rank for Advanced Drainage Systems's Return-on-Tangible-Asset or its related term are showing as below:
MEX:WMS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -18.44 Med: 17.14 Max: 29.13
Current: 15.43
During the past 13 years, Advanced Drainage Systems's highest Return-on-Tangible-Asset was 29.13%. The lowest was -18.44%. And the median was 17.14%.
MEX:WMS's Return-on-Tangible-Asset is ranked better than 94.27% of 1779
companies
in the Construction industry
Industry Median: 3.03
vs MEX:WMS: 15.43
Advanced Drainage Systems (MEX:WMS) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Advanced Drainage Systems Return-on-Tangible-Asset Related Terms
Advanced Drainage Systems Return-on-Tangible-Asset Historical Data
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The historical data trend for Advanced Drainage Systems's Return-on-Tangible-Asset can be seen below:
* 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 Return-on-Tangible-Asset Chart
MEX:WMS vs SPXC, OC, AAON: Return-on-Tangible-Asset Comparison
For the Building Products & Equipment subindustry, Advanced Drainage Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 4.68% mean?
Advanced Drainage Systems (MEX:WMS) has a Return-on-Tangible-Asset of 4.68% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Advanced Drainage Systems and its competitors. This is 73% below median its historical median of 17.14. According to the industry distribution chart, Advanced Drainage Systems ranks #102 out of 1779 companies in the Construction industry, placing it in the top 5.7%.
Is Advanced Drainage Systems' Return-on-Tangible-Asset too high?
Advanced Drainage Systems' current Return-on-Tangible-Asset of 4.68% is 73% below median its 10-year median of 17.14. The Construction industry median Return-on-Tangible-Asset is 3.03. Advanced Drainage Systems' value of 4.68% is 54.5% above this industry median. Based on the distribution chart, Advanced Drainage Systems ranks #102 out of 1779 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 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' Return-on-Tangible-Asset compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #102 out of 1779 companies for Return-on-Tangible-Asset. This places Advanced Drainage Systems in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.03. Advanced Drainage Systems' value of 4.68% is 54.5% above this benchmark. While the company's 10-year median is 17.14 vs. the industry median of 3.03, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.03, based on 1,779 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Drainage Systems's current Return-on-Tangible-Asset of 4.68% is 54.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Drainage Systems's current Return-on-Tangible-Asset is 4.68%, which is 73% below median its own 10-year median of 17.14. 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 Modestly Undervalued. The stock's GF Value™ is MXN2,070.97, compared to a current price of MXN2,100.00 — trading 1.4% above its estimated fair value. The current Return-on-Tangible-Asset is 4.68%, which is 73% below median its 10-year median of 17.14 and 54.5% above the Construction industry median of 3.03. Advanced Drainage Systems' overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current Return-on-Tangible-Asset is 4.68% 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 1.4% above its estimated GF Value™ of MXN2,070.97.
GuruFocus considers Advanced Drainage Systems to be Modestly Undervalued.
Key valuation signals for MEX:WMS:
Return-on-Tangible-Asset: 4.68% (73% below median its 10-year median of 17.14)
GF Value™: MXN2,070.97 vs. price of MXN2,100.00 (1.4% above fair value)
Industry Position: 54.5% above the Construction median (#102 of 1779)
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.
61GF Score
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