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McGrath RentCorp (MGRC)

POSITIVE
IndustrialsRental & Leasing ServicesUnited States

Fundamental

74

Price

$116.10

Market Cap

$2.84B

Part 1 · What the company is worth

Overview

McGrath RentCorp operates as a business-to-business rental company in the United States and internationally. The company also engages in renting and selling relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex. The Mobile Modular segment rents and sells modular buildings designed for use as classrooms, temporary offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, childcare facilities, office spaces, and various other purposes. The Portable Storage segment offers steel containers, such as storage and office containers, to provide temporary storage solutions to construction, retail, commercial and industrial, energy and petrochemical, manufacturing, education, and healthcare markets. The TRS-RenTelco segment rents and sells general purpose electronic test equipment, such as oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment primarily for the aerospace, defense, electronics, industrial, research, and semiconductor industries. This segment also provides communications test equipment, including network and transmission test equipment for various fiber, copper, and wireless networks to the manufacturers of communications equipment and products, electrical and communications installation contractors, field technicians, and service providers. The Enviroplex segment manufactures and sells portable classrooms directly to public school districts and other educational institutions in California. The company was incorporated in 1979 and is based in Livermore, California.

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Direct competitors

Who this company fights with for the same customers

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Balance Sheet & Liquidity

Revenue

$933M

Trailing 12 months (through 6/30/2026)

Net Income

$153M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$211M

Total Equity

$1.24B

Total Liabilities

$1.12B

Current Ratio

1.27

Interest Coverage

8.40

Debt/EBITDA

1.68

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$186.40

Current Price

$116.10

Margin of Safety

+37.7%

Fair Value Range

$121.16 - $251.64

Estimation Methods

Analyst price target:$145.40
Discounted cash flow (DCF):$366.45
Earnings multiple (P/E):$105.85
Graham growth formula:$142.52
Earnings power value (EPV):$95.79
Justified P/B:$106.05
Dividend discount (Gordon):$50.66
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$218.04
Revenue multiple:Not enough data to compute it
Analyst Consensus:Strong Buy (8B / 1H / 0S)
Last Earnings Surprise:-10.70%

Valuation Metrics

P/E Ratio

18.76

ROE

12.6%

P/B Ratio

2.28

P/FCF

13.58

Gross Margin

48.5%

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

7.3%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 9.91%
  • Price CAGR 11.53%
  • Gross Margin 48.5%
  • P/FCF 13.58
  • P/B Ratio 2.28
  • Debt/Equity ratio
  • Operating Margin 25.5%
  • Positive Free Cash Flow
  • CapEx intensity
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 12.4%
  • Revenue Growth 5Y 10.5%
  • Analyst Consensus 89% Buy
  • Earnings Quality (OCF/NI) 1.65
  • Share Dilution 0.2%
  • Piotroski F-Score 7/9

Failed (6)

  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Fairly valued)
  • Earnings Surprise avg -1.7%
  • PEG Ratio 2.20
  • Net Margin Trend 16.4% vs 26.8%

Unavailable (3)

  • ROIC NaN%
  • Dividend Payout NaN%
  • Current Ratio

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.65

High quality: earnings backed by cash

Share Dilution

0.2%

Share count is stable

Governance

Executive Team

NameTitleAge
Mr. Philip B. HawkinsPresident, CEO & Director49
Mr. Keith E. PrattExecutive VP, CFO & Assistant Corporate Secretary62
Ms. Gilda Malek J.D.Senior VP, Chief Legal Officer & Corporate Secretary56
Ms. Kristina E. Van Trease-WhitneySenior VP & Chief Strategy Officer55
Mr. David M. Whitney CPASenior VP & Chief Accounting Officer60
Ms. Tara D. WescottSenior VP & Chief Human Resources Officer51
Ms. Chris J. SnyderSenior Vice President of Mobile Modular54
Mr. John P. SkeneskyVP & Division Manager of TRS-RenTelco58
Mr. John P. LieffrigVP & Division Manager of Mobile Modular Portable Storage60

Audit Risk

2

Board Risk

1

Compensation Risk

2

Shareholder Rights Risk

1

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for MGRC, sourced from Markets Gazette.

No recent news for MGRC.