MGRC Stock Analysis: McGrath RentCorp | NASDAQ
Rental & Leasing Services | NASDAQ, USA | Market Cap: 2.754m USD | 12M Return: -2.4% | US5805891091 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 18.2M
EPS Trend: 94.9%
Qual. Beats: 0
Rev. Trend: 92.2%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 business-to-business rental company headquartered in Livermore, California, operating across the United States and internationally. Founded in 1979, the company is classified within the Industrials sector (GICS Sub-Industry: Trading Companies & Distributors) and is structured around four operating segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.
The Mobile Modular segment rents and sells relocatable modular buildings used as classrooms, temporary offices, healthcare clinics, childcare facilities, and construction field offices. The Portable Storage segment provides steel storage and office containers to construction, retail, commercial, industrial, energy, manufacturing, education, and healthcare markets. This segment reflects the broader modular and prefabricated construction industry, which has grown as organizations seek flexible, lower-capital alternatives to permanent structures.
The TRS-RenTelco segment rents and sells electronic test equipment-including oscilloscopes, amplifiers, analyzers, and communications network test gear-to aerospace, defense, electronics, semiconductor, and research customers. This segment operates within the electronic test equipment rental market, where firms lease high-cost specialized instruments to avoid large capital outlays. The Enviroplex segment manufactures and sells portable classrooms directly to California public school districts and other educational institutions.
- Modular rental demand from education and commercial construction sectors
- Electronic test equipment leasing tied to semiconductor and aerospace capex
- California classroom manufacturing orders from K-12 districts
- Interest rate cuts pressure fleet financing costs and rental pricing power
| Net Income: 152.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -3.14 > 1.0 |
| NWC/Revenue: -59.89% < 20% (prev 7.92%; Δ -67.81% < -1%) |
| CFO/TA 0.10 > 3% & CFO 251.7m > Net Income 152.8m |
| Net Debt (585.5m) to EBITDA (348.1m): 1.68 < 3 |
| Current Ratio: 0.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (24.5m) vs 12m ago -0.50% < -2% |
| Gross Margin: 46.87% > 18% (prev 46.32%; Δ 0.55% > 0.5%) |
| Asset Turnover: 38.63% > 50% (prev 40.46%; Δ -1.83% > 0%) |
| Interest Coverage Ratio: 8.40 > 6 (EBIT TTM 237.5m / Interest Expense TTM 28.3m) |
| A: -0.22 (Total Current Assets 376.6m - Total Current Liabilities 935.3m) / Total Assets 2.50b |
| B: 0.45 (Retained Earnings 1.13b / Total Assets 2.50b) |
| C: 0.10 (EBIT TTM 237.5m / Avg Total Assets 2.42b) |
| D: 0.99 (Book Value of Equity 1.25b / Total Liabilities 1.26b) |
| Altman-Z'' = 1.70 = BBB |
| DSRI: 1.04 (Receivables 240.0m/233.8m, Revenue 932.9m/941.5m) |
| GMI: 0.99 (GM 46.32% / 46.87%) |
| AQI: 3.72 (AQ_t 0.75 / AQ_t-1 0.20) |
| SGI: 0.99 (Revenue 932.9m / 941.5m) |
| TATA: -0.04 (NI 152.8m - CFO 251.7m) / TA 2.50b) |
| Beneish M = -1.41 (Cap -4..+1) = D |
As of October 15, 2026, the stock is trading at USD 111.97 with a total of 141,280 shares traded. Over the past week, the price has changed by -2.00%, over one month by +1.21%, over three months by -2.98% and over the past year by -2.42%.
Current recommended Stop Loss: 108.60 (which is 3% or 1.3 ATR below the current price).
McGrath RentCorp has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy MGRC.
- StrongBuy: 1
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 145.4 | 29.9% |
P/E Trailing = 18.153
P/E Forward = 16.1551
P/S = 2.9517
P/B = 2.2214
P/EG = 1.0425
Revenue TTM = 932.9m USD
EBIT TTM = 237.5m USD
EBITDA TTM = 348.1m USD
Long Term Debt = 589.9m USD (from longTermDebt, last quarter)
Short Term Debt = 589.9m USD (from shortTermDebt, last quarter)
Debt = 589.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 585.5m USD (calculated: Debt 589.9m - CCE 4.38m)
Enterprise Value = 3.34b USD (2.75b + Debt 589.9m - CCE 4.38m)
Interest Coverage Ratio = 8.40 (Ebit TTM 237.5m / Interest Expense TTM 28.3m)
EV/FCF = 15.94x (Enterprise Value 3.34b / FCF TTM 209.5m)
FCF Yield = 6.28% (FCF TTM 209.5m / Enterprise Value 3.34b)
FCF Margin = 22.46% (FCF TTM 209.5m / Revenue TTM 932.9m)
Net Margin = 16.38% (Net Income TTM 152.8m / Revenue TTM 932.9m)
Gross Margin = 46.87% ((Revenue TTM 932.9m - Cost of Revenue TTM 495.7m) / Revenue TTM)
Gross Margin QoQ = 48.80% (prev 46.23%)
Tobins Q-Ratio = 1.33 (Enterprise Value 3.34b / Total Assets 2.50b)
Interest Expense / Debt = 4.79% (Interest Expense 28.3m / Debt 589.9m)
Taxrate = 26.95% (56.4m / 209.2m)
NOPAT = 173.5m (EBIT 237.5m * (1 - 26.95%))
Current Ratio = 0.40 (Total Current Assets 376.6m / Total Current Liabilities 935.3m)
Debt / Equity = 0.47 (Debt 589.9m / totalStockholderEquity, last quarter 1.25b)
Debt / EBITDA = 1.68 (Net Debt 585.5m / EBITDA 348.1m)
Debt / FCF = 2.79 (Net Debt 585.5m / FCF TTM 209.5m)
Total Stockholder Equity = 1.23b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.33% (Net Income 152.8m / Total Assets 2.50b)
RoE = 12.44% (Net Income TTM 152.8m / Total Stockholder Equity 1.23b)
RoCE = 13.06% (EBIT 237.5m / Capital Employed (Equity 1.23b + L.T.Debt 589.9m))
RoIC = 8.06% (NOPAT 173.5m / Invested Capital 2.15b)
WACC = 7.17% (E(2.75b)/V(3.34b) * Re(7.95%) + D(589.9m)/V(3.34b) * Rd(4.79%) * (1-Tc(0.27)))
Discount Rate = 7.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 23.47 | Cagr: -0.13%
[DCF] Terminal Value 73.10% ; FCFF base≈232.8m ; Y1≈204.2m ; Y5≈165.0m
[DCF] Fair Price = 84.44 (EV 2.65b - Net Debt 585.5m = Equity 2.06b / Shares 24.4m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 94.86 | EPS CAGR: 12.39% | SUE: -0.12 | # QB: 0
Revenue Correlation: 92.25 | Revenue CAGR: 6.03% | SUE: -1.03 | # QB: -1
EPS current Quarter (2026-09-30): EPS=1.84 | Chg30d=+0.41% | Revisions=-17% | Analysts=4
EPS current Year (2026-12-31): EPS=6.35 | Chg30d=+0.20% | Revisions=+17% | GrowthEPS=-0.1% | GrowthRev=+2.0%
EPS next Year (2027-12-31): EPS=6.95 | Chg30d=-0.93% | Revisions=-50% | GrowthEPS=+9.4% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: -25% (up=3, down=6)