Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
McGrath RentCorp's 3-Year RORE % for the quarter that ended in Mar. 2026 was 7.54%.
The industry rank for McGrath RentCorp's 3-Year RORE % or its related term are showing as below:
MGRC's 3-Year RORE % is ranked worse than 50.15% of 979
companies
in the Business Services industry
Industry Median: 7.59
vs MGRC: 7.54
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
McGrath RentCorp 3-Year RORE % Related Terms
McGrath RentCorp 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for McGrath RentCorp's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
McGrath RentCorp (MGRC) has a 3-Year RORE % of 7.54 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on McGrath RentCorp and its competitors. According to the industry distribution chart, McGrath RentCorp ranks #491 out of 979 companies in the Business Services industry, placing it in the top 50.2%.
Is McGrath RentCorp's 3-Year RORE % too high?
McGrath RentCorp's current 3-Year RORE % is 7.54. The Business Services industry median 3-Year RORE % is 7.59. McGrath RentCorp's value of 7.54 is 0.7% below this industry median. Based on the distribution chart, McGrath RentCorp ranks #491 out of 979 companies in the Business Services industry, which is below 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 3-Year RORE % compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #491 out of 979 companies for 3-Year RORE %. This places McGrath RentCorp in the lower half of its industry. The industry median 3-Year RORE % is 7.59. McGrath RentCorp's value of 7.54 is 0.7% 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 3-Year RORE % for a Business Services company?
The median 3-Year RORE % among Business Services companies is 7.59, based on 979 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGrath RentCorp's current 3-Year RORE % of 7.54 is 0.7% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on McGrath RentCorp and its competitors. For the Business Services industry, the median 3-Year RORE % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current 3-Year RORE % is 7.54. 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 $122.31, compared to a current price of $116.68 — trading 4.6% below its estimated fair value. The current 3-Year RORE % is 7.54 and 0.7% below the Business Services industry median of 7.59. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For McGrath RentCorp (MGRC), the current 3-Year RORE % is 7.54 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 $116.68 is trading 4.6% below its estimated GF Value™ of $122.31.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
3-Year RORE %: 7.54
GF Value™: $122.31 vs. price of $116.68 (4.6% below fair value)
Industry Position: 0.7% below the Business Services median (#491 of 979)
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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