Advanced Drainage SystemsMEX:WMS 59 ROE % is 6.69% as of Mar. 2026, which is 72% below its 10-year median of 24.32. 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 1,743 Construction companies, Advanced Drainage Systems ranks better than 87.78% on this metric.
The historical rank and industry rank for Advanced Drainage Systems's ROE % or its related term are showing as below:
MEX:WMS'
s ROE % Range Over the Past 10 Years
Min: -30.68 Med: 24.32 Max: 49.09
Current: 23.11
During the past 13 years, Advanced Drainage Systems's highest ROE % was 49.09%. The lowest was -30.68%. And the median was 24.32%.
MEX:WMS's ROE % is ranked better than 87.78% of 1743
companies
in the Construction industry
Industry Median: 6.69
vs MEX:WMS: 23.11
Advanced Drainage Systems (MEX:WMS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Building Products & Equipment subindustry, Advanced Drainage Systems's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's ROE % distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Advanced Drainage Systems (MEX:WMS) has a ROE % of 6.69% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Advanced Drainage Systems and its competitors. This is 72% below median its historical median of 24.32. According to the industry distribution chart, Advanced Drainage Systems ranks #213 out of 1743 companies in the Construction industry, placing it in the top 12.2%.
Is Advanced Drainage Systems' ROE % too high?
Advanced Drainage Systems' current ROE % of 6.69% is 72% below median its 10-year median of 24.32. The Construction industry median ROE % is 6.69. Advanced Drainage Systems' value of 6.69% is 0% at this industry median. Based on the distribution chart, Advanced Drainage Systems ranks #213 out of 1743 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 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' ROE % compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #213 out of 1743 companies for ROE %. This places Advanced Drainage Systems in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 6.69. Advanced Drainage Systems' value of 6.69% is 0% at this benchmark. While the company's 10-year median is 24.32 vs. the industry median of 6.69, Advanced Drainage Systems has consistently been at 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.69, based on 1,743 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Drainage Systems's current ROE % of 6.69% is 0% at 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Drainage Systems's current ROE % is 6.69%, which is 72% below median its own 10-year median of 24.32. 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 ROE % is 6.69%, which is 72% below median its 10-year median of 24.32 and 0% at the Construction industry median of 6.69. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current ROE % is 6.69% 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:
ROE %: 6.69% (72% below median its 10-year median of 24.32)
GF Value™: MXN1,996.53 vs. price of MXN2,100.00 (5.2% above fair value)
Industry Position: 0% at the Construction median (#213 of 1743)
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
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