McGrath RentCorpMGRC 90 ROE % is 8.74% as of Mar. 2026, which is 43% below its 10-year median of 15.24. GuruFocus rates MGRC with a GF Score™ of 90/100 and a GF Value™ of $122.13 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,058 Business Services companies, McGrath RentCorp ranks better than 67.3% on this metric.
The historical rank and industry rank for McGrath RentCorp's ROE % or its related term are showing as below:
MGRC'
s ROE % Range Over the Past 10 Years
Min: 9.88 Med: 15.24 Max: 33.52
Current: 12.99
During the past 13 years, McGrath RentCorp's highest ROE % was 33.52%. The lowest was 9.88%. And the median was 15.24%.
MGRC's ROE % is ranked better than 67.3% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs MGRC: 12.99
McGrath RentCorp (NAS:MGRC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
McGrath RentCorp ROE % Related Terms
McGrath RentCorp ROE % Historical Data
* Premium members only.
The historical data trend for McGrath RentCorp's ROE % 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.
For the Rental & Leasing Services subindustry, McGrath RentCorp's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's ROE % distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
McGrath RentCorp (MGRC) has a ROE % of 8.74% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on McGrath RentCorp and its competitors. This is 43% below median its historical median of 15.24. Over the past decade, McGrath RentCorp's ROE % has ranged from 9.88 to 33.52. According to the industry distribution chart, McGrath RentCorp ranks #346 out of 1058 companies in the Business Services industry, placing it in the top 32.7%.
Is McGrath RentCorp's ROE % too high?
McGrath RentCorp's current ROE % of 8.74% is 43% below median its 10-year median of 15.24. Over the past 10 years, this metric has ranged from a low of 9.88 to a high of 33.52. The Business Services industry median ROE % is 8.10. McGrath RentCorp's value of 8.74% is 8% above this industry median. Based on the distribution chart, McGrath RentCorp ranks #346 out of 1058 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 ROE % compare to CTOS and HTZ?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #346 out of 1058 companies for ROE %. This puts McGrath RentCorp in the upper half of its industry. The industry median ROE % is 8.10. McGrath RentCorp's value of 8.74% is 8% above this benchmark. Historically, McGrath RentCorp's own ROE % has ranged from 9.88 to 33.52 over the past decade. While the company's 10-year median is 15.24 vs. the industry median of 8.10, 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 ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGrath RentCorp's current ROE % of 8.74% is 8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on McGrath RentCorp and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current ROE % is 8.74%, which is 43% below median its own 10-year median of 15.24. 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 $122.13, compared to a current price of $121.79 — trading 0.3% below its estimated fair value. The current ROE % is 8.74%, which is 43% below median its 10-year median of 15.24 and 8% above the Business Services industry median of 8.10. McGrath RentCorp's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For McGrath RentCorp (MGRC), the current ROE % is 8.74% 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 $121.79 is trading 0.3% below its estimated GF Value™ of $122.13.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
ROE %: 8.74% (43% below median its 10-year median of 15.24)
GF Value™: $122.13 vs. price of $121.79 (0.3% below fair value)
Industry Position: 8% above the Business Services median (#346 of 1058)
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.
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