3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Advanced Drainage Systems's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was -4.85%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Advanced Drainage Systems's 3-Year ROIIC % or its related term are showing as below:
MEX:WMS's 3-Year ROIIC % is ranked worse than 68.77% of 1681
companies
in the Construction industry
Industry Median: 4.63
vs MEX:WMS: -4.85
Advanced Drainage Systems (MEX:WMS) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Advanced Drainage Systems 3-Year ROIIC % Related Terms
Advanced Drainage Systems 3-Year ROIIC % 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.
MEX:WMS vs SPXC, OC, AAON: 3-Year ROIIC % Comparison
For the Building Products & Equipment subindustry, Advanced Drainage Systems's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Advanced Drainage Systems (MEX:WMS) has a 3-Year ROIIC % of -4.85 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Advanced Drainage Systems and its competitors. According to the industry distribution chart, Advanced Drainage Systems ranks #1156 out of 1681 companies in the Construction industry, placing it in the top 68.8%.
Is Advanced Drainage Systems' 3-Year ROIIC % too high?
Advanced Drainage Systems' current 3-Year ROIIC % is -4.85. Based on the distribution chart, Advanced Drainage Systems ranks #1156 out of 1681 companies in the Construction industry, which is below the industry midpoint. 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' 3-Year ROIIC % compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #1156 out of 1681 companies for 3-Year ROIIC %. This places Advanced Drainage Systems in the lower half of its industry. The industry median 3-Year ROIIC % is 4.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Construction company?
The median 3-Year ROIIC % among Construction companies is 4.63, based on 1,681 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Drainage Systems's current 3-Year ROIIC % is -4.85. 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 MXN2,897.97, compared to a current price of MXN2,100.00 — trading 27.5% below its estimated fair value. The current 3-Year ROIIC % is -4.85. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current 3-Year ROIIC % is -4.85 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 undervalued.
The current stock price of MXN2,100.00 is trading 27.5% below its estimated GF Value™ of MXN2,897.97.
GuruFocus considers Advanced Drainage Systems to be Modestly Undervalued.
Key valuation signals for MEX:WMS:
3-Year ROIIC %: -4.85
GF Value™: MXN2,897.97 vs. price of MXN2,100.00 (27.5% below fair value)
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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