Mcgrath Rentcorp (MGRC) AI Stock Analysis

• Market Cap: $2.95B
• Dividend Yield: 1.61%
• Average Volume (3M): 127.31K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.79
• Revenue Growth: 8.78%
• EPS Growth: 117.40%
• Country: US
• Employees: 1,219
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 1.46
• Shares Outstanding: 24,611,530
• 10 Day Avg. Volume: 147,012
• 30 Day Avg. Volume: 127,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 7.06
• 1Y Price Target: $139.50
• Price Target Upside: 17.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• Price Target: $136.00 ▲(14.50% Upside)

McGrath Rentcorp's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's robust revenue growth, efficient cash flow management, and strategic acquisitions position it well for future growth. Technical indicators and valuation metrics further support a positive outlook, despite some challenges in specific segments.

Mcgrath Rentcorp Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

McGrath RentCorp generates revenue primarily through the rental of modular space and mobile storage units. The company operates on a rental model, charging customers on a monthly basis for the use of its products. Key revenue streams include long-term and short-term rentals, as well as ancillary services such as delivery, setup, and maintenance of the rental units. McGrath RentCorp also earns revenue from the sale of used equipment and containers. Significant partnerships with construction firms, educational institutions, and government agencies further contribute to the company's earnings, as these sectors often require reliable and scalable rental solutions for their projects.

Mcgrath Rentcorp Financial Statement Overview

Summary

McGrath Rentcorp demonstrates strong financial health with significant revenue growth, robust profitability margins, and efficient cash flow management. The company maintains a balanced leverage with a solid return on equity, indicating effective financial management.

Income Statement

The income statement shows strong revenue growth with a steady increase over the years, reaching $941.5M in the TTM period. Gross profit margin is healthy at 47.4% and net profit margin stands robust at 26.8% in TTM. Revenue growth from 2024 to TTM is 3.4%, indicating consistent business expansion. EBIT and EBITDA margins remain solid, reflecting efficient operations.

Balance Sheet

The balance sheet displays a balanced financial position with a debt-to-equity ratio of 0.49 in TTM, showing manageable leverage. Return on equity is strong at 21.7%, suggesting effective utilization of equity capital. The equity ratio stands at 50.0%, indicating a stable equity base relative to assets. The financial stability is supported by healthy equity and manageable debt levels.

Cash Flow

Cash flow analysis reveals robust free cash flow growth, recovering from negative figures in 2023 to $267.8M in TTM. Operating cash flow to net income ratio is 1.37, showing strong cash generation capability. Free cash flow to net income ratio is also healthy at 1.06, reflecting excellent cash flow management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	941.54M	910.94M	831.84M	635.66M	534.59M	572.55M
Gross Profit	445.89M	435.42M	393.63M	336.91M	281.02M	263.75M
EBITDA	485.17M	468.35M	299.40M	258.26M	230.75M	235.40M
Net Income	252.45M	231.73M	174.62M	115.14M	89.70M	101.98M
Balance Sheet
Total Assets	2.33B	2.28B	2.22B	1.71B	1.60B	1.28B
Cash, Cash Equivalents and Short-Term Investments	1.47M	807.00K	877.00K	957.00K	1.49M	1.24M
Total Debt	572.52M	590.21M	762.98M	425.34M	426.45M	222.75M
Total Liabilities	1.16B	1.15B	1.28B	903.90M	863.90M	593.14M
Stockholders Equity	1.16B	1.12B	933.80M	803.95M	732.02M	682.60M
Cash Flow
Free Cash Flow	267.83M	334.15M	-178.32M	-10.87M	78.92M	80.45M
Operating Cash Flow	345.44M	374.38M	95.34M	194.43M	195.74M	180.50M
Investing Cash Flow	-78.47M	-150.75M	-391.87M	-131.43M	-351.70M	-53.00M
Financing Cash Flow	-274.90M	-223.69M	296.44M	-63.53M	156.20M	-128.45M

Mcgrath Rentcorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 118.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGRC, the sentiment is Neutral. The current price of 118.78 is below the 20-day moving average (MA) of 122.48, below the 50-day MA of 121.19, and above the 200-day MA of 115.91, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 9.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGRC.

Mcgrath Rentcorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	81 Outperform	$2.95B	11.68	23.85%	1.61%	8.78%	117.40%
WSC	66 Neutral	3.90B	35.79	10.61%	1.01%	-2.34%	-37.24%
HRI	50 Neutral	4.08B	142.37	1.20%	2.31%	11.41%	-92.67%
HTZ	47 Neutral	2.17B	-0.85	505.56%	―	-7.58%	-225.06%
VSTS	47 Neutral	551.09M	-18.46	-3.40%	3.33%	-4.59%	-125.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mcgrath Rentcorp Corporate Events

McGrath RentCorp Shareholders Approve Key Proposals at Annual Meeting

On June 4, 2025, McGrath RentCorp held its annual meeting of shareholders where several key proposals were voted on. The shareholders elected directors, ratified the appointment of Grant Thornton LLP as independent auditors for 2025, and approved the compensation of the company’s named executive officers on a non-binding, advisory basis.