MGRC Stock Analysis: McGrath RentCorp | NASDAQ
Rental & Leasing Services | NASDAQ, USA | Market Cap: 2.868m USD | 12M Return: -1.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 22.1M
EPS Trend: 97.0%
Qual. Beats: 0
Rev. Trend: 92.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
McGrath RentCorp (NASDAQ: MGRC) is a U.S.-based business-to-business rental company founded in 1979 and headquartered in Livermore, California. The company operates through four segments: Mobile Modular (relocatable modular buildings), Portable Storage (steel containers), TRS-RenTelco (electronic test equipment), and Enviroplex (portable classrooms for California schools).
The Mobile Modular segment is the core business, providing temporary and semi-permanent modular structures for classrooms, offices, healthcare clinics, and construction sites. The Portable Storage segment supplies steel storage and office containers to construction, industrial, energy, and education markets. The B2B rental model in these segments typically generates recurring revenue through project-based and medium-term lease contracts.
TRS-RenTelco rents general-purpose electronic test equipment (oscilloscopes, analyzers, signal sources) to aerospace, defense, semiconductor, and industrial R&D customers, along with communications test gear for fiber, copper, and wireless networks. This segment benefits from the cyclical capital spending patterns of telecom equipment manufacturers and defense contractors. Enviroplex, the smallest segment, is a California-focused manufacturer selling portable classrooms directly to public school districts.
- Mobile Modular revenue grows with commercial construction and education demand
- TRS-RenTelco margins depend on semiconductor and telecom test equipment cycles
- Higher interest rates raise fleet financing costs across rental segments
| Net Income: 155.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -2.35 > 1.0 |
| NWC/Revenue: -4.74% < 20% (prev 8.92%; Δ -13.65% < -1%) |
| CFO/TA 0.10 > 3% & CFO 244.2m > Net Income 155.1m |
| Net Debt (543.6m) to EBITDA (350.0m): 1.55 < 3 |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (24.7m) vs 12m ago 0.17% < -2% |
| Gross Margin: 45.93% > 18% (prev 46.70%; Δ -0.77% > 0.5%) |
| Asset Turnover: 41.01% > 50% (prev 40.96%; Δ 0.04% > 0%) |
| Interest Coverage Ratio: 8.34 > 6 (EBIT TTM 241.5m / Interest Expense TTM 29.0m) |
| A: -0.02 (Total Current Assets 235.6m - Total Current Liabilities 280.5m) / Total Assets 2.38b |
| B: 0.47 (Retained Earnings 1.12b / Total Assets 2.38b) |
| C: 0.10 (EBIT TTM 241.5m / Avg Total Assets 2.31b) |
| D: 1.08 (Book Value of Equity 1.24b / Total Liabilities 1.14b) |
| Altman-Z'' = 3.25 = A |
| DSRI: 1.03 (Receivables 222.1m/208.9m, Revenue 947.4m/918.5m) |
| GMI: 1.02 (GM 46.70% / 45.93%) |
| AQI: 0.99 (AQ_t 0.20 / AQ_t-1 0.20) |
| SGI: 1.03 (Revenue 947.4m / 918.5m) |
| TATA: -0.04 (NI 155.1m - CFO 244.2m) / TA 2.38b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of July 15, 2026, the stock is trading at USD 115.88 with a total of 112,169 shares traded. Over the past week, the price has changed by +2.03%, over one month by +1.49%, over three months by +1.87% and over the past year by -1.31%.
Current recommended Stop Loss: 109.80 (which is 5.2% or 2 ATR below the current price).
McGrath RentCorp has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy MGRC.
- StrongBuy: 1
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 145.4 | 25.5% |
P/E Trailing = 18.5333
P/E Forward = 18.1818
P/S = 3.0272
P/B = 2.3173
P/EG = 1.1725
Revenue TTM = 947.4m USD
EBIT TTM = 241.5m USD
EBITDA TTM = 350.0m USD
Long Term Debt = 546.0m USD (from longTermDebt, last quarter)
Short Term Debt = 12.9m USD (from shortTermDebt, last fiscal year)
Debt = 546.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 543.6m USD (calculated: Debt 546.0m - CCE 2.36m)
Enterprise Value = 3.41b USD (2.87b + Debt 546.0m - CCE 2.36m)
Interest Coverage Ratio = 8.34 (Ebit TTM 241.5m / Interest Expense TTM 29.0m)
EV/FCF = 17.43x (Enterprise Value 3.41b / FCF TTM 195.7m)
FCF Yield = 5.74% (FCF TTM 195.7m / Enterprise Value 3.41b)
FCF Margin = 20.66% (FCF TTM 195.7m / Revenue TTM 947.4m)
Net Margin = 16.38% (Net Income TTM 155.1m / Revenue TTM 947.4m)
Gross Margin = 45.93% ((Revenue TTM 947.4m - Cost of Revenue TTM 512.3m) / Revenue TTM)
Gross Margin QoQ = 46.23% (prev 48.04%)
Tobins Q-Ratio = 1.43 (Enterprise Value 3.41b / Total Assets 2.38b)
Interest Expense / Debt = 5.30% (Interest Expense 29.0m / Debt 546.0m)
Taxrate = 27.01% (57.4m / 212.5m)
NOPAT = 176.3m (EBIT 241.5m * (1 - 27.01%))
Current Ratio = 0.84 (Total Current Assets 235.6m / Total Current Liabilities 280.5m)
Debt / Equity = 0.44 (Debt 546.0m / totalStockholderEquity, last quarter 1.24b)
Debt / EBITDA = 1.55 (Net Debt 543.6m / EBITDA 350.0m)
Debt / FCF = 2.78 (Net Debt 543.6m / FCF TTM 195.7m)
Total Stockholder Equity = 1.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.72% (Net Income 155.1m / Total Assets 2.38b)
RoE = 12.84% (Net Income TTM 155.1m / Total Stockholder Equity 1.21b)
RoCE = 13.77% (EBIT 241.5m / Capital Employed (Equity 1.21b + L.T.Debt 546.0m))
RoIC = 8.36% (NOPAT 176.3m / Invested Capital 2.11b)
WACC = 7.86% (E(2.87b)/V(3.41b) * Re(8.62%) + D(546.0m)/V(3.41b) * Rd(5.30%) * (1-Tc(0.27)))
Discount Rate = 8.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 98.01 | Cagr: 0.23%
[DCF] Terminal Value 73.10% ; FCFF base≈212.4m ; Y1≈186.2m ; Y5≈150.5m
[DCF] Fair Price = 76.20 (EV 2.42b - Net Debt 543.6m = Equity 1.87b / Shares 24.6m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 97.02 | EPS CAGR: 13.87% | SUE: -0.04 | # QB: 0
Revenue Correlation: 92.03 | Revenue CAGR: 8.75% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.46 | Chg30d=-3.94% | Revisions=-29% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.84 | Chg30d=-0.68% | Revisions=+17% | Analysts=4
EPS current Year (2026-12-31): EPS=6.34 | Chg30d=-1.93% | Revisions=-40% | GrowthEPS=-0.3% | GrowthRev=+2.4%
EPS next Year (2027-12-31): EPS=7.01 | Chg30d=-0.39% | Revisions=+0% | GrowthEPS=+10.6% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: -21% (up=4, down=7)