ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Morguard Real Estate Investment Trust's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.58%.
Morguard Real Estate Investment Trust (OTCPK:MGRUF) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Morguard Real Estate Investment Trust's WACC % is 4.57%. Morguard Real Estate Investment Trust's ROC % is 4.15% (calculated using TTM income statement data).
Morguard Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Morguard Real Estate Investment Trust ROC % Related Terms
Morguard Real Estate Investment Trust ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Morguard Real Estate Investment Trust (MGRUF) has a ROC % of 3.58% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Morguard Real Estate Investment Trust and its competitors.
Is Morguard Real Estate Investment Trust's ROC % too high?
Morguard Real Estate Investment Trust's current ROC % is 3.58%. The REITs industry median ROC % is 3.74. Morguard Real Estate Investment Trust's value of 3.58% is 4.3% below this industry median. Overall, Morguard Real Estate Investment Trust has a GF Score™ of 57/100, reflecting its overall financial health beyond just this single metric.
How does Morguard Real Estate Investment Trust's ROC % compare to VICI and WPC?
Morguard Real Estate Investment Trust's ROC % of 3.58% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Morguard Real Estate Investment Trust's value of 3.58% is 4.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 747 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morguard Real Estate Investment Trust's current ROC % of 3.58% is 4.3% 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 % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Morguard Real Estate Investment Trust and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morguard Real Estate Investment Trust's current ROC % is 3.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morguard Real Estate Investment Trust stock overvalued right now?
Morguard Real Estate Investment Trust (MGRUF) has a current ROC % of 3.58%. The stock's GF Value™ is $3.58, compared to a current price of $4.64 — trading 29.6% above its estimated fair value. The current ROC % is 3.58% and 4.3% below the REITs industry median of 3.74. Morguard Real Estate Investment Trust's overall GF Score™ is 57/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Morguard Real Estate Investment Trust (MGRUF), the current ROC % is 3.58% 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 Morguard Real Estate Investment Trust (MGRUF) Overvalued in 2026?
Based on GuruFocus' analysis, Morguard Real Estate Investment Trust stock appears to be overvalued.
The current stock price of $4.64 is trading 29.6% above its estimated GF Value™ of $3.58.
Key valuation signals for MGRUF:
ROC %: 3.58%
GF Value™: $3.58 vs. price of $4.64 (29.6% above fair value)
No single metric tells the full story. See the MGRUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morguard Real Estate Investment Trust Business Description
Morguard Real Estate Investment Trust is a closed-end trust that owns, manages, and invests in a diversified real estate portfolio of commercial properties across Canada. The company has three reportable segments namely Retail, Office, and Industrial. It derives maximum revenue from the Retail segment.
57GF Score
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