Advanced Drainage SystemsMEX:WMS 60 Return-on-Tangible-Equity is 28.89% as of Mar. 2026, which is 76% below its 10-year median of 121.36. GuruFocus rates MEX:WMS with a GF Score™ of 60/100 and a GF Value™ of MXN2,042.04 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,704 Construction companies, Advanced Drainage Systems ranks better than 92.08% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Advanced Drainage Systems's annualized net income for the quarter that ended in Mar. 2026 was MXN2,373 Mil. Advanced Drainage Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN8,213 Mil. Therefore, Advanced Drainage Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 28.89%.
The historical rank and industry rank for Advanced Drainage Systems's Return-on-Tangible-Equity or its related term are showing as below:
MEX:WMS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.65 Med: 121.36 Max: 3534.8
Current: 78.45
During the past 13 years, Advanced Drainage Systems's highest Return-on-Tangible-Equity was 3,534.80%. The lowest was 22.65%. And the median was 121.36%.
MEX:WMS's Return-on-Tangible-Equity is ranked better than 92.08% of 1704
companies
in the Construction industry
Industry Median: 8.245
vs MEX:WMS: 78.45
Advanced Drainage Systems (MEX:WMS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Advanced Drainage Systems Return-on-Tangible-Equity Related Terms
Advanced Drainage Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Advanced Drainage Systems's Return-on-Tangible-Equity 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-Equity Chart
MEX:WMS vs SPXC, OC, AAON: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Advanced Drainage Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.89% mean?
Advanced Drainage Systems (MEX:WMS) has a Return-on-Tangible-Equity of 28.89% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Advanced Drainage Systems and its competitors. This is 76% below median its historical median of 121.36. Over the past decade, Advanced Drainage Systems' Return-on-Tangible-Equity has ranged from 22.65 to 3,534.80. According to the industry distribution chart, Advanced Drainage Systems ranks #135 out of 1704 companies in the Construction industry, placing it in the top 7.9%.
Is Advanced Drainage Systems' Return-on-Tangible-Equity too high?
Advanced Drainage Systems' current Return-on-Tangible-Equity of 28.89% is 76% below median its 10-year median of 121.36. Over the past 10 years, this metric has ranged from a low of 22.65 to a high of 3,534.80. The Construction industry median Return-on-Tangible-Equity is 8.25. Advanced Drainage Systems' value of 28.89% is 250.4% above this industry median. Based on the distribution chart, Advanced Drainage Systems ranks #135 out of 1704 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 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' Return-on-Tangible-Equity compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #135 out of 1704 companies for Return-on-Tangible-Equity. This places Advanced Drainage Systems in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. Advanced Drainage Systems' value of 28.89% is 250.4% above this benchmark. Historically, Advanced Drainage Systems' own Return-on-Tangible-Equity has ranged from 22.65 to 3,534.80 over the past decade. While the company's 10-year median is 121.36 vs. the industry median of 8.25, 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 28.89% is 250.4% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — 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-Equity is 28.89%, which is 76% below median its own 10-year median of 121.36. 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 MXN2,042.04, compared to a current price of MXN2,100.00 — trading 2.8% above its estimated fair value. The current Return-on-Tangible-Equity is 28.89%, which is 76% below median its 10-year median of 121.36 and 250.4% above the Construction industry median of 8.25. Advanced Drainage Systems' overall GF Score™ is 60/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current Return-on-Tangible-Equity is 28.89% 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 2.8% above its estimated GF Value™ of MXN2,042.04.
GuruFocus considers Advanced Drainage Systems to be Fairly Valued.
Key valuation signals for MEX:WMS:
Return-on-Tangible-Equity: 28.89% (76% below median its 10-year median of 121.36)
GF Value™: MXN2,042.04 vs. price of MXN2,100.00 (2.8% above fair value)
Industry Position: 250.4% above the Construction median (#135 of 1704)
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.
60GF Score
Get the complete analysis for MEX:WMS
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:WMS has been successfully added to your 
