Want to see MGRC full AI Analyst Report?
Top Page
Mcgrath Rentcorp
(NASDAQ:MGRC)
Select Model
Select Model
Rating:71Outperform
Price Target:
$129.00
▲(7.50% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong profitability and improved balance-sheet positioning alongside robust recent free-cash-flow generation. The earnings outlook is cautiously positive with maintained/tightened guidance and strength in TRS and Mobile Modular trends, but is tempered by segment headwinds (Enviroplex/portable storage) and higher investment needs. Technicals are mildly supportive (price above key longer-term averages), while valuation looks fair with a modest dividend yield.
Positive Factors
Strong cash generation
Sustained operating and free cash flow conversion (~80% of net income) underpins durable financial flexibility. Strong FCF funds dividends, buybacks, fleet reinvestment and M&A optionality, supporting growth execution and resilience through cycles despite historical volatility in some years.
Negative Factors
Enviroplex revenue and margin volatility
A dramatic drop in Enviroplex sales highlights project-timing and demand volatility in that segment. Large swings in project revenue and margin can meaningfully distort company results, increase forecasting risk, and leave utilization and capital recovery sensitive to a small set of large projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating and free cash flow conversion (~80% of net income) underpins durable financial flexibility. Strong FCF funds dividends, buybacks, fleet reinvestment and M&A optionality, supporting growth execution and resilience through cycles despite historical volatility in some years.
Read all positive factors
Mcgrath Rentcorp (MGRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.81B
Dividend Yield1.7%
Average Volume (3M)190.43K
Price to Earnings (P/E)18.5
Beta (1Y)0.65
Revenue Growth-0.92%
EPS Growth-39.51%
CountryUS
Employees1,306
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)6.22
Shares Outstanding24,425,663
10 Day Avg. Volume130,309
30 Day Avg. Volume190,430
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)2.09
Price to Sales (P/S)2.73
P/FCF Ratio12.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$141.50Price Target Upside17.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)6.37
Revenue Forecast (FY)$966.50M
Mcgrath Rentcorp Business Overview & Revenue Model
Company Description
McGrath RentCorp (MGRC) operates as a diversified business-to-business provider of rental solutions, serving clients across the United States and internationally. Its primary offerings encompass a range of temporary infrastructure and specialized ...
How the Company Makes Money
MGRC primarily makes money by renting specialty assets to customers under short- and longer-term rental arrangements, charging periodic rental fees for the use of its equipment and structures. Key revenue streams typically include (1) rental reven...
Mcgrath Rentcorp Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive tone: clear operational inflection points and strong performance at TRS and improving modular rental trends underpin confidence (rental revenue growth, higher revenue per unit, and sequential utilization improvement). These positives are partially offset by meaningful near-term headwinds — a sharp decline in Enviroplex sales, weakness in portable storage, lower total revenues and modestly lower adjusted EBITDA — driven largely by project timing and soft local construction markets. Management maintained guidance midpoints, increased targeted CapEx for growth areas, and highlighted balance sheet flexibility, suggesting cautious optimism but balanced risks.Positive Updates
Rental Operations Growth
Rental operations revenues increased 6% year-over-year, driven by Mobile Modular and TRS RenTelco momentum; company emphasized rental operations growth despite weaker sales.
Negative Updates
Total Revenue and Adjusted EBITDA Declines
Total company revenues decreased 6% to $221M and adjusted EBITDA fell 4% to $83M versus prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
Rental Operations Growth
Rental operations revenues increased 6% year-over-year, driven by Mobile Modular and TRS RenTelco momentum; company emphasized rental operations growth despite weaker sales.
Read all positive updates
Company Guidance
Management left midpoints unchanged but tightened full-year 2026 guidance, now forecasting total revenue of $955–$985 million and adjusted EBITDA of $363–$375 million, while increasing gross rental equipment CapEx to $200–$220 million to support incremental TRS investment. They expect continued strength in Mobile Modular and stronger-than-expected TRS to offset weaker portable storage and Enviroplex (Enviroplex expected to be similar to 2024); Q2 results supporting the outlook included total revenues of $221 million and adjusted EBITDA of $83 million, Mobile Modular revenues of $150 million (adjusted EBITDA $51M) with average utilization ~70.1% (ended the quarter ~70.6%), TRS revenues of $43 million (up 17%) and adjusted EBITDA $25 million (up 29%) with utilization ~68.1% (ended 68.9%). Financial flexibility cited to execute the plan: net borrowings $590 million, funded debt / LTM adjusted EBITDA 1.65x, year-to-date rental equipment purchases $124 million (vs. $50M prior year), net cash from operations $106 million YTD, $25 million of dividends paid and $27 million of share repurchases YTD, with management focused on disciplined execution, capital allocation and opportunistic M&A.Mcgrath Rentcorp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 932.86M | 944.24M | 910.94M | 831.84M | 635.66M | 616.83M |
| Gross Profit | 437.19M | 434.84M | 435.42M | 393.63M | 259.29M | 266.21M |
| EBITDA | 348.11M | 350.77M | 468.35M | 299.40M | 258.26M | 238.91M |
| Net Income | 152.83M | 156.31M | 231.73M | 174.62M | 115.14M | 89.70M |
Balance Sheet | ||||||
| Total Assets | 2.50B | 2.36B | 2.31B | 2.27B | 1.71B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 4.38M | 295.00K | 807.00K | 877.00K | 957.00K | 1.49M |
| Total Debt | 589.89M | 527.79M | 602.83M | 777.75M | 425.34M | 437.45M |
| Total Liabilities | 1.26B | 1.12B | 1.18B | 1.33B | 903.90M | 878.24M |
| Stockholders Equity | 1.25B | 1.24B | 1.12B | 933.80M | 803.95M | 732.02M |
Cash Flow | ||||||
| Free Cash Flow | 209.53M | 211.30M | 334.15M | -178.32M | -10.87M | 78.92M |
| Operating Cash Flow | 251.68M | 255.68M | 374.38M | 95.34M | 194.43M | 195.74M |
| Investing Cash Flow | -183.94M | -127.11M | -150.75M | -391.87M | -131.43M | -351.70M |
| Financing Cash Flow | -64.83M | -129.08M | -223.69M | 296.44M | -63.53M | 156.20M |
Mcgrath Rentcorp Technical Analysis
Negative
120.00
Price Trends
114.97
Positive
112.80
Positive
110.62
Positive
Market Momentum
0.92
Negative
58.54
Neutral
55.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGRC, the sentiment is Negative. The current price of 120 is above the 20-day moving average (MA) of 116.88, above the 50-day MA of 114.97, and above the 200-day MA of 110.62, indicating a neutral trend. The MACD of 0.92 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 55.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGRC.
Mcgrath Rentcorp Risk Analysis
Mcgrath Rentcorp disclosed 84 risk factors in its most recent earnings report. Mcgrath Rentcorp reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mcgrath Rentcorp Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.81B | 18.51 | 12.84% | 1.63% | -0.92% | -39.51% | |
68 Neutral | $9.83B | 20.81 | 16.70% | 1.36% | 1.12% | 3.84% | |
64 Neutral | $1.64B | 37.48 | 17.33% | 0.70% | 23.13% | 12.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.39B | -65.62 | -7.11% | 1.06% | -4.12% | -487.73% | |
58 Neutral | $2.31B | -121.85 | -2.18% | ― | 9.38% | 43.77% | |
49 Neutral | $5.02B | 102.14 | 2.56% | 1.72% | 28.50% | 67.75% |
* Industrials Sector Average
MGRC
Mcgrath Rentcorp
115.15
-3.59
-3.03%
WSC
WillScot Mobile Mini Holdings
24.28
-0.50
-2.03%
HRI
Herc Holdings
150.14
38.53
34.53%
R
Ryder System
256.42
84.09
48.80%
WLFC
Willis Lease Finance
71.33
25.64
56.13%
CTOS
Custom Truck One Source
10.15
4.15
69.17%
Mcgrath Rentcorp Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
McGrath RentCorp Shareholders Approve Directors and Incentive Plan
Positive
Jun 5, 2026
At its annual meeting of shareholders held on June 3, 2026, McGrath RentCorp investors elected seven directors to the board, including Nicolas C. Anderson, Kimberly A. Box, Smita Conjeevaram, William J. Dawson, Joseph F. Hanna, Philip B. Hawkins a...
Business Operations and StrategyPrivate Placements and Financing
McGrath RentCorp Expands and Extends Revolving Credit Facility
Positive
May 11, 2026
On May 8, 2026, McGrath RentCorp entered into a Third Amended and Restated Credit Agreement that refinances its prior $650 million facility and extends its revolving credit line to May 8, 2031. The new structure provides a $725 million senior revo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.