McGrath RentCorpMGRC -2.48%90 Return-on-Tangible-Equity is 12.59% as of Mar. 2026, which is 30% below its 10-year median of 18.01. GuruFocus rates MGRC with a GF Score™ of 90/100 and a GF Value™ of $122.26 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,009 Business Services companies, McGrath RentCorp ranks better than 67.1% 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. McGrath RentCorp's annualized net income for the quarter that ended in Mar. 2026 was $108.1 Mil. McGrath RentCorp's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $859.0 Mil. Therefore, McGrath RentCorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.59%.
The historical rank and industry rank for McGrath RentCorp's Return-on-Tangible-Equity or its related term are showing as below:
MGRC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.92 Med: 18.01 Max: 36.36
Current: 19.04
During the past 13 years, McGrath RentCorp's highest Return-on-Tangible-Equity was 36.36%. The lowest was 10.92%. And the median was 18.01%.
MGRC's Return-on-Tangible-Equity is ranked better than 67.1% of 1009
companies
in the Business Services industry
Industry Median: 10.56
vs MGRC: 19.04
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.
McGrath RentCorp Return-on-Tangible-Equity Related Terms
McGrath RentCorp Return-on-Tangible-Equity Historical Data
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The historical data trend for McGrath RentCorp'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.
MGRC vs CTOS, VSTS, PRG: Return-on-Tangible-Equity Comparison
For the Rental & Leasing Services subindustry, McGrath RentCorp'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.
McGrath RentCorp Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp'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 12.59% mean?
McGrath RentCorp (MGRC) has a Return-on-Tangible-Equity of 12.59% 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 McGrath RentCorp and its competitors. This is 30% below median its historical median of 18.01. Over the past decade, McGrath RentCorp's Return-on-Tangible-Equity has ranged from 10.92 to 36.36. According to the industry distribution chart, McGrath RentCorp ranks #332 out of 1009 companies in the Business Services industry, placing it in the top 32.9%.
Is McGrath RentCorp's Return-on-Tangible-Equity too high?
McGrath RentCorp's current Return-on-Tangible-Equity of 12.59% is 30% below median its 10-year median of 18.01. Over the past 10 years, this metric has ranged from a low of 10.92 to a high of 36.36. The Business Services industry median Return-on-Tangible-Equity is 10.56. McGrath RentCorp's value of 12.59% is 19.2% above this industry median. Based on the distribution chart, McGrath RentCorp ranks #332 out of 1009 companies in the Business Services industry, which is above the industry midpoint. Overall, McGrath RentCorp has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McGrath RentCorp's Return-on-Tangible-Equity compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #332 out of 1009 companies for Return-on-Tangible-Equity. This puts McGrath RentCorp in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.56. McGrath RentCorp's value of 12.59% is 19.2% above this benchmark. Historically, McGrath RentCorp's own Return-on-Tangible-Equity has ranged from 10.92 to 36.36 over the past decade. While the company's 10-year median is 18.01 vs. the industry median of 10.56, McGrath RentCorp 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.56, based on 1,009 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. McGrath RentCorp's current Return-on-Tangible-Equity of 12.59% is 19.2% 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 McGrath RentCorp and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current Return-on-Tangible-Equity is 12.59%, which is 30% below median its own 10-year median of 18.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGrath RentCorp stock overvalued right now?
Based on GuruFocus' analysis, McGrath RentCorp (MGRC) is currently considered Fairly Valued. The stock's GF Value™ is $122.26, compared to a current price of $113.39 — trading 7.3% below its estimated fair value. The current Return-on-Tangible-Equity is 12.59%, which is 30% below median its 10-year median of 18.01 and 19.2% above the Business Services industry median of 10.56. McGrath RentCorp's overall GF Score™ is 90/100 with 4 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 McGrath RentCorp (MGRC), the current Return-on-Tangible-Equity is 12.59% 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 McGrath RentCorp (MGRC) Overvalued in 2026?
Based on GuruFocus' analysis, McGrath RentCorp stock appears to be undervalued.
The current stock price of $113.39 is trading 7.3% below its estimated GF Value™ of $122.26.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
Return-on-Tangible-Equity: 12.59% (30% below median its 10-year median of 18.01)
GF Value™: $122.26 vs. price of $113.39 (7.3% below fair value)
Industry Position: 19.2% above the Business Services median (#332 of 1009)
No single metric tells the full story. See the MGRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McGrath RentCorp is a diversified business-to-business rental company with three rental divisions: relocatable modular buildings, portable storage containers, and electronic test equipment. It comprises four reportable business segments, namely the Modular Building segment (Mobile Modular), which generates maximum revenue; the Portable Storage segment (Portable Storage); the Electronic Test Equipment segment (TRS-RenTelco); and its classroom manufacturing business (Enviroplex), which sells modular buildings used as classrooms in California. The company generates its revenues mainly from the rental of its equipment under operating leases, with sales of equipment occurring in the normal course of business.
90GF Score
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