Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
McGrath RentCorpMGRC +2.87%91 ROC (Joel Greenblatt) % is 10.42% as of Mar. 2026, which is 17% below its 10-year median of 12.58. GuruFocus rates MGRC with a GF Score™ of 91/100 and a GF Value™ of $122.35 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,083 Business Services companies, McGrath RentCorp ranks worse than 57.43% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. McGrath RentCorp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 10.42%.
The historical rank and industry rank for McGrath RentCorp's ROC (Joel Greenblatt) % or its related term are showing as below:
MGRC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 8.13 Med: 12.58 Max: 23.41
Current: 14.85
During the past 13 years, McGrath RentCorp's highest ROC (Joel Greenblatt) % was 23.41%. The lowest was 8.13%. And the median was 12.58%.
MGRC's ROC (Joel Greenblatt) % is ranked worse than 57.43% of 1083
companies
in the Business Services industry
Industry Median: 21.2
vs MGRC: 14.85
McGrath RentCorp's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 9.50% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
McGrath RentCorp ROC (Joel Greenblatt) % Related Terms
McGrath RentCorp ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for McGrath RentCorp's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Rental & Leasing Services subindustry, McGrath RentCorp's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 10.42% mean?
McGrath RentCorp (MGRC) has a ROC (Joel Greenblatt) % of 10.42% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on McGrath RentCorp and its competitors. This is 17% below median its historical median of 12.58. Over the past decade, McGrath RentCorp's ROC (Joel Greenblatt) % has ranged from 8.13 to 23.41. According to the industry distribution chart, McGrath RentCorp ranks #622 out of 1083 companies in the Business Services industry, placing it in the top 57.4%.
Is McGrath RentCorp's ROC (Joel Greenblatt) % too high?
McGrath RentCorp's current ROC (Joel Greenblatt) % of 10.42% is 17% below median its 10-year median of 12.58. Over the past 10 years, this metric has ranged from a low of 8.13 to a high of 23.41. The Business Services industry median ROC (Joel Greenblatt) % is 21.20. McGrath RentCorp's value of 10.42% is 50.8% below this industry median. Based on the distribution chart, McGrath RentCorp ranks #622 out of 1083 companies in the Business Services industry, which is below the industry midpoint. Overall, McGrath RentCorp has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McGrath RentCorp's ROC (Joel Greenblatt) % compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #622 out of 1083 companies for ROC (Joel Greenblatt) %. This places McGrath RentCorp in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 21.20. McGrath RentCorp's value of 10.42% is 50.8% below this benchmark. Historically, McGrath RentCorp's own ROC (Joel Greenblatt) % has ranged from 8.13 to 23.41 over the past decade. While the company's 10-year median is 12.58 vs. the industry median of 21.20, McGrath RentCorp has consistently been below 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 ROC (Joel Greenblatt) % for a Business Services company?
The median ROC (Joel Greenblatt) % among Business Services companies is 21.20, based on 1,083 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGrath RentCorp's current ROC (Joel Greenblatt) % of 10.42% is 50.8% below 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on McGrath RentCorp and its competitors. For the Business Services industry, the median ROC (Joel Greenblatt) % is 21.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current ROC (Joel Greenblatt) % is 10.42%, which is 17% below median its own 10-year median of 12.58. 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 $122.35, compared to a current price of $121.02 — trading 1.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 10.42%, which is 17% below median its 10-year median of 12.58 and 50.8% below the Business Services industry median of 21.20. McGrath RentCorp's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For McGrath RentCorp (MGRC), the current ROC (Joel Greenblatt) % is 10.42% 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 $121.02 is trading 1.1% below its estimated GF Value™ of $122.35.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
ROC (Joel Greenblatt) %: 10.42% (17% below median its 10-year median of 12.58)
GF Value™: $122.35 vs. price of $121.02 (1.1% below fair value)
Industry Position: 50.8% below the Business Services median (#622 of 1083)
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.
91GF Score
Get the complete analysis for MGRC
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MGRC has been successfully added to your 
