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McGrath RentCorpMGRC +0.85%91 3-Year ROIIC % is 9.79 as of Dec. 2025, which is 9% below its 10-year median of 10.79. GuruFocus rates MGRC with a GF Score™ of 91/100 and a GF Value™ of $122.33 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,010 Business Services companies, McGrath RentCorp ranks better than 59.8% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
McGrath RentCorp's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 9.79%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for McGrath RentCorp's 3-Year ROIIC % or its related term are showing as below:
MGRC's 3-Year ROIIC % is ranked better than 59.8% of 1010
companies
in the Business Services industry
Industry Median: 4.995
vs MGRC: 9.79
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
McGrath RentCorp 3-Year ROIIC % Related Terms
McGrath RentCorp 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for McGrath RentCorp's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Rental & Leasing Services subindustry, McGrath RentCorp's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
McGrath RentCorp (MGRC) has a 3-Year ROIIC % of 9.79 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on McGrath RentCorp and its competitors. This is near median its historical median of 10.79. According to the industry distribution chart, McGrath RentCorp ranks #406 out of 1010 companies in the Business Services industry, placing it in the top 40.2%.
Is McGrath RentCorp's 3-Year ROIIC % too high?
McGrath RentCorp's current 3-Year ROIIC % of 9.79 is near median its 10-year median of 10.79. The Business Services industry median 3-Year ROIIC % is 5.00. McGrath RentCorp's value of 9.79 is 96% above this industry median. Based on the distribution chart, McGrath RentCorp ranks #406 out of 1010 companies in the Business Services industry, which is above 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 3-Year ROIIC % compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #406 out of 1010 companies for 3-Year ROIIC %. This puts McGrath RentCorp in the upper half of its industry. The industry median 3-Year ROIIC % is 5.00. McGrath RentCorp's value of 9.79 is 96% above this benchmark. While the company's 10-year median is 10.79 vs. the industry median of 5.00, 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 3-Year ROIIC % for a Business Services company?
The median 3-Year ROIIC % among Business Services companies is 5.00, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGrath RentCorp's current 3-Year ROIIC % of 9.79 is 96% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on McGrath RentCorp and its competitors. For the Business Services industry, the median 3-Year ROIIC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current 3-Year ROIIC % is 9.79, which is near median its own 10-year median of 10.79. 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 $122.33, compared to a current price of $116.87 — trading 4.5% below its estimated fair value. The current 3-Year ROIIC % is 9.79, which is near median its 10-year median of 10.79 and 96% above the Business Services industry median of 5.00. McGrath RentCorp's overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For McGrath RentCorp (MGRC), the current 3-Year ROIIC % is 9.79 as of Dec. 2025. 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 $116.87 is trading 4.5% below its estimated GF Value™ of $122.33.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
3-Year ROIIC %: 9.79 (near median its 10-year median of 10.79)
GF Value™: $122.33 vs. price of $116.87 (4.5% below fair value)
Industry Position: 96% above the Business Services median (#406 of 1010)
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
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