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McGrath RentCorpMGRC -0.73%92 5-Year Yield-on-Cost % is 2.00 as of Jul. 22, 2026, which is 17% below its 10-year median of 2.41. GuruFocus rates MGRC with a GF Score™ of 92/100 and a GF Value™ of $122.40 (Fairly Valued). The stock has 4 warning signs investors should review. Among 597 Business Services companies, McGrath RentCorp ranks worse than 75.21% on this metric.
McGrath RentCorp's yield on cost for the quarter that ended in Mar. 2026 was 2.00.
The historical rank and industry rank for McGrath RentCorp's 5-Year Yield-on-Cost % or its related term are showing as below:
MGRC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.67 Med: 2.41 Max: 3.96
Current: 2
During the past 13 years, McGrath RentCorp's highest Yield on Cost was 3.96. The lowest was 1.67. And the median was 2.41.
MGRC's 5-Year Yield-on-Cost % is ranked worse than 75.21% of 597
companies
in the Business Services industry
Industry Median: 4.04
vs MGRC: 2.00
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
McGrath RentCorp 5-Year Yield-on-Cost % Related Terms
MGRC vs CTOS, VSTS, PRG: 5-Year Yield-on-Cost % Comparison
For the Rental & Leasing Services subindustry, McGrath RentCorp's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
McGrath RentCorp (MGRC) has a 5-Year Yield-on-Cost % of 2.00 as of Jul. 22, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on McGrath RentCorp and its competitors. This is 17% below median its historical median of 2.41. Over the past decade, McGrath RentCorp's 5-Year Yield-on-Cost % has ranged from 1.67 to 3.96. According to the industry distribution chart, McGrath RentCorp ranks #449 out of 597 companies in the Business Services industry, placing it in the top 75.2%.
Is McGrath RentCorp's 5-Year Yield-on-Cost % too high?
McGrath RentCorp's current 5-Year Yield-on-Cost % of 2.00 is 17% below median its 10-year median of 2.41. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 3.96. The Business Services industry median 5-Year Yield-on-Cost % is 4.04. McGrath RentCorp's value of 2.00 is 50.5% below this industry median. Based on the distribution chart, McGrath RentCorp ranks #449 out of 597 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, McGrath RentCorp has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McGrath RentCorp's 5-Year Yield-on-Cost % compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #449 out of 597 companies for 5-Year Yield-on-Cost %. This places McGrath RentCorp in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.04. McGrath RentCorp's value of 2.00 is 50.5% below this benchmark. Historically, McGrath RentCorp's own 5-Year Yield-on-Cost % has ranged from 1.67 to 3.96 over the past decade. While the company's 10-year median is 2.41 vs. the industry median of 4.04, 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 5-Year Yield-on-Cost % for a Business Services company?
The median 5-Year Yield-on-Cost % among Business Services companies is 4.04, based on 597 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGrath RentCorp's current 5-Year Yield-on-Cost % of 2.00 is 50.5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on McGrath RentCorp and its competitors. For the Business Services industry, the median 5-Year Yield-on-Cost % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current 5-Year Yield-on-Cost % is 2.00, which is 17% below median its own 10-year median of 2.41. 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 $122.40, compared to a current price of $116.63 — trading 4.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.00, which is 17% below median its 10-year median of 2.41 and 50.5% below the Business Services industry median of 4.04. McGrath RentCorp's overall GF Score™ is 92/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For McGrath RentCorp (MGRC), the current 5-Year Yield-on-Cost % is 2.00 as of Jul. 22, 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 $116.63 is trading 4.7% below its estimated GF Value™ of $122.40.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
5-Year Yield-on-Cost %: 2.00 (17% below median its 10-year median of 2.41)
GF Value™: $122.40 vs. price of $116.63 (4.7% below fair value)
Industry Position: 50.5% below the Business Services median (#449 of 597)
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.
92GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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