MGRC

McGrath RentCorp

Fundamental data last updated:November 1, 2026

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company profile

SECTOR

Industrials

industry

Rental & Leasing Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

McGrath RentCorp operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, electronic test equipment and related accessories, and liquid and solid containment tanks and boxes. The company operates through four segments: Mobile Modular, TRS-RenTelco, Adler Tanks, 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, child care facilities, office spaces, and various other purposes; and portable storage containers. 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 to aerospace, defense, electronics, industrial, research, and semiconductor industries. It 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 Adler Tanks segment rents fixed axle steel tanks for storing groundwater, wastewater, volatile organic liquids, sewage, slurry and bio sludge, oil and water mixtures, and chemicals; vacuum containers for sludge and solid materials; dewatering boxes for the separation of water contained in sludge and slurry; and roll-off and trash boxes for temporary storage and transportation of solid waste. 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 headquartered in Livermore, California.

 


VALUATION

P/E

17.67

Market Cap ($M USD)

$2.74B

Forward P/E

15.88

PEG

1.41

PRICE TO SALES

2.89

PRICE TO BOOK

2.22

EV / EBITDA

9.36

5-Year Average P/E

Free Cash Flow Yield

7.16%

DCF Value

$372.89

Graham Number

$84.40

Price to FCF

13.97

EV to FCF

16.75

Earnings Yield

5.66%

FCF Yield

7.16%

DIVIDEND

Yield

1.75%

Annual Payout

$1.95

Payout Ratio

31.14%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.30

Next Year EPS Growth Estimate

$7.01

Next Year Revenue Growth Estimate

$1.01B

Return on Equity (ROE)

12.84%

FREE CASH FLOW

Operating Margin

25.53%

Debt-to-Equity

0.43

Piotroski F-Score

6

Altman Z-Score

2.81

Return on Invested Capital (ROIC)

11.53%

Current Ratio

0.84

Quick Ratio

0.80

Net Debt to EBITDA

1.55

Interest Coverage

8.35

Gross Profit margin

45.93%

FCF PER SHARE

$7.95

REVENUE PER SHARE

$38.49

Gainseekers Quantitative Analysis

Summary

MGRC’s valuation is a paradox. Despite a DCF value that towers over its snapshot price, the market seems to overlook this deep value opportunity. The Forward P/E of 16.35 suggests reasonable growth expectations, yet the Earnings Yield of 5.50% indicates a potential undervaluation. With an Altman Z-score of 2.85, the company is on stable financial ground, hinting at a solid balance between growth and safety. The market may be mispricing MGRC, offering a compelling case for value investors.

AI Exposure / Tech Reliance

Operating in the Rental & Leasing Services industry, MGRC is well-positioned to leverage AI and tech advancements. The sector's inherent need for efficient asset management and logistics can benefit from AI-driven optimizations. This adaptability could enhance operational efficiency and customer satisfaction, securing its competitive edge.

The Bull Case

For the value-driven investor, MGRC presents an attractive proposition. With a robust ROIC of 11.53% and a healthy FCF Yield of 6.95%, the company demonstrates strong capital efficiency and cash generation. A Piotroski F-Score of 6 indicates sound financial health, while an operating margin of 25.53% underscores its pricing power. These metrics paint a picture of a company that knows how to turn revenue into profit, making it a worthy addition to a GARP portfolio.

The Bear Case

However, MGRC is not without its flaws. The Price/Book ratio of 2.28 and Price/Sales of 2.97 suggest the stock might be overvalued relative to its assets and revenue. The current ratio of 0.84 raises liquidity concerns, indicating potential short-term financial strain. Furthermore, trading close to its 52-week high, the stock appears technically overextended, which could deter cautious investors wary of a pullback.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$140.00

Institutional Ownership %

1-Year Beta

0.45

Insider Buying % (6 Mo)

Distance to 52-Week High

15.30%

Distance to 52-Week Low

14.71%

EARNINGS SURPRISE %

-2.65%

50-DAY SMA

$112.07

200-DAY SMA

$112.47

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.