Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Advanced Drainage Systems's 3-Year RORE % for the quarter that ended in Mar. 2026 was -3.35%.
The industry rank for Advanced Drainage Systems's 3-Year RORE % or its related term are showing as below:
MEX:WMS's 3-Year RORE % is ranked worse than 62.13% of 1632
companies
in the Construction industry
Industry Median: 6.525
vs MEX:WMS: -3.35
Advanced Drainage Systems (MEX:WMS) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Advanced Drainage Systems 3-Year RORE % Related Terms
Advanced Drainage Systems 3-Year RORE % 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 RORE % Comparison
For the Building Products & Equipment subindustry, Advanced Drainage Systems's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Advanced Drainage Systems (MEX:WMS) has a 3-Year RORE % of -3.35 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Advanced Drainage Systems and its competitors. According to the industry distribution chart, Advanced Drainage Systems ranks #1014 out of 1632 companies in the Construction industry, placing it in the top 62.1%.
Is Advanced Drainage Systems' 3-Year RORE % too high?
Advanced Drainage Systems' current 3-Year RORE % is -3.35. Based on the distribution chart, Advanced Drainage Systems ranks #1014 out of 1632 companies in the Construction industry, which is below the industry midpoint. Overall, Advanced Drainage Systems has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' 3-Year RORE % compare to SPXC and OC?
According to the Construction industry distribution chart, Advanced Drainage Systems ranks #1014 out of 1632 companies for 3-Year RORE %. This places Advanced Drainage Systems in the lower half of its industry. The industry median 3-Year RORE % is 6.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Construction company?
The median 3-Year RORE % among Construction companies is 6.53, based on 1,632 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Advanced Drainage Systems and its competitors. For the Construction industry, the median 3-Year RORE % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Drainage Systems's current 3-Year RORE % is -3.35. 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 MXN2,042.73, compared to a current price of MXN2,100.00 — trading 2.8% above its estimated fair value. The current 3-Year RORE % is -3.35. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current 3-Year RORE % is -3.35 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 MXN2,042.73.
GuruFocus considers Advanced Drainage Systems to be Modestly Undervalued.
Key valuation signals for MEX:WMS:
3-Year RORE %: -3.35
GF Value™: MXN2,042.73 vs. price of MXN2,100.00 (2.8% above 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.
60GF Score
Get the complete analysis for MEX:WMS
3-Year RORE % 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 
