(MGRC) McGrath RentCorp - Overview
Sector: Industrials | Industry: Rental & Leasing Services | Exchange: NASDAQ (USA) | Market Cap: 2.744m USD | Total Return: -2.2% in 12m
Avg Turnover: 18.3M
EPS Trend: 97.0%
Qual. Beats: 0
Rev. Trend: 92.0%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
McGrath RentCorp (MGRC) is a diversified business-to-business rental company specializing in modular buildings, portable storage, and electronic test equipment. Based in Livermore, California, the firm serves a broad range of sectors including education, construction, aerospace, and telecommunications through four primary segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.
The company’s business model relies on high-utilization rental fleets, which allow for recurring revenue streams and lower capital intensity compared to traditional construction. In the modular segment, the company benefits from the secular demand for temporary classroom space driven by regional shifts in student populations and legislative mandates for smaller class sizes.
The TRS-RenTelco division provides specialized electronic and communications test equipment, such as oscilloscopes and signal analyzers, to the semiconductor and defense industries. This niche market is characterized by high technical barriers to entry and requires constant inventory refreshment to keep pace with rapid technological advancements in 5G and fiber optic networking.
For a more detailed breakdown of the companys valuation metrics and historical performance, you may find it useful to explore the data on ValueRay. McGrath RentCorp’s Enviroplex segment specifically targets the California public school market, providing a vertically integrated manufacturing arm that complements its broader rental operations.
- Higher interest rates increase debt servicing costs and dampen construction activity
- Educational infrastructure spending drives long-term modular building rental demand
- Aerospace and defense R&D cycles dictate electronic test equipment utilization
- Non-residential construction starts influence portable storage and office site demand
- Regulatory changes in California school facility funding impact Enviroplex manufacturing volume
| 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 (350.4m): 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 0.47%; Δ 4.55k% > 0.5%) |
| Asset Turnover: 41.01% > 50% (prev 40.96%; Δ 0.04% > 0%) |
| Interest Coverage Ratio: 8.35 > 6 (EBITDA TTM 350.4m / 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 241.9m / 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 45.93% / 46.70%) |
| 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 = -3.01 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 108.99 with a total of 183,668 shares traded.
Over the past week, the price has changed by -0.63%,
over one month by -8.26%,
over three months by -1.34% and
over the past year by -2.21%.
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 | 33.4% |
P/E Trailing = 17.7317
P/E Forward = 17.1527
P/S = 2.8963
P/B = 2.1862
P/EG = 1.1062
Revenue TTM = 947.4m USD
EBIT TTM = 241.9m USD
EBITDA TTM = 350.4m 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 = 3.29b USD (2.74b + Debt 546.0m - CCE 2.36m)
Interest Coverage Ratio = 8.35 (Ebit TTM 241.9m / Interest Expense TTM 29.0m)
EV/FCF = 16.79x (Enterprise Value 3.29b / FCF TTM 195.7m)
FCF Yield = 5.95% (FCF TTM 195.7m / Enterprise Value 3.29b)
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 = 1.38 (Enterprise Value 3.29b / Total Assets 2.38b)
Interest Expense / Debt = 5.30% (Interest Expense 29.0m / Debt 546.0m)
Taxrate = 26.68% (9.84m / 36.9m)
NOPAT = 177.4m (EBIT 241.9m * (1 - 26.68%))
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 350.4m)
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 = 13.79% (EBIT 241.9m / Capital Employed (Equity 1.21b + L.T.Debt 546.0m))
RoIC = 8.41% (NOPAT 177.4m / Invested Capital 2.11b)
WACC = 8.13% (E(2.74b)/V(3.29b) * Re(8.97%) + D(546.0m)/V(3.29b) * Rd(5.30%) * (1-Tc(0.27)))
Discount Rate = 8.97% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | 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=-25% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.84 | Chg30d=-0.68% | Revisions=+14% | Analysts=4
EPS current Year (2026-12-31): EPS=6.34 | Chg30d=-1.93% | Revisions=-33% | 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: -33%