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MGRC

McGrath RentCorpNasdaqGS:MGRC Stock Report

Last Price

US$75.89

Market Cap

US$1.8b

7D

-2.9%

1Y

3.5%

Updated

21 Jan, 2022

Data

Company Financials +
MGRC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends5/6

MGRC Stock Overview

McGrath RentCorp operates as a business to business rental company in the United States and internationally.

McGrath RentCorp Competitors

Fastenal

NasdaqGS:FAST

US$32.5b

United Rentals

NYSE:URI

US$21.5b

Herc Holdings

NYSE:HRI

US$4.6b

Triton International

NYSE:TRTN

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for McGrath RentCorp
Historical stock prices
Current Share PriceUS$75.89
52 Week HighUS$87.53
52 Week LowUS$67.08
Beta0.83
1 Month Change-3.29%
3 Month Change-0.26%
1 Year Change3.53%
3 Year Change53.31%
5 Year Change93.20%
Change since IPO3,320.39%

Recent News & Updates

Dec 27
Estimating The Intrinsic Value Of McGrath RentCorp (NASDAQ:MGRC)

Estimating The Intrinsic Value Of McGrath RentCorp (NASDAQ:MGRC)

Does the December share price for McGrath RentCorp ( NASDAQ:MGRC ) reflect what it's really worth? Today, we will...

Oct 26
At US$76.82, Is McGrath RentCorp (NASDAQ:MGRC) Worth Looking At Closely?

At US$76.82, Is McGrath RentCorp (NASDAQ:MGRC) Worth Looking At Closely?

McGrath RentCorp ( NASDAQ:MGRC ), might not be a large cap stock, but it saw a double-digit share price rise of over...

Shareholder Returns

MGRCUS Trade DistributorsUS Market
7D-2.9%-6.1%-6.1%
1Y3.5%22.1%4.2%

Return vs Industry: MGRC underperformed the US Trade Distributors industry which returned 23.7% over the past year.

Return vs Market: MGRC underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is MGRC's price volatile compared to industry and market?
MGRC volatility
MGRC Average Weekly Movement3.3%
Trade Distributors Industry Average Movement5.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: MGRC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MGRC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19791,061Joe Hannahttps://www.mgrc.com

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.

McGrath RentCorp Fundamentals Summary

How do McGrath RentCorp's earnings and revenue compare to its market cap?
MGRC fundamental statistics
Market CapUS$1.84b
Earnings (TTM)US$92.43m
Revenue (TTM)US$589.90m

19.9x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGRC income statement (TTM)
RevenueUS$589.90m
Cost of RevenueUS$320.50m
Gross ProfitUS$269.41m
ExpensesUS$176.97m
EarningsUS$92.43m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 23, 2022

Earnings per share (EPS)3.81
Gross Margin45.67%
Net Profit Margin15.67%
Debt/Equity Ratio64.5%

How did MGRC perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is McGrath RentCorp undervalued compared to its fair value and its price relative to the market?

20.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGRC ($75.89) is trading below our estimate of fair value ($95.02)

Significantly Below Fair Value: MGRC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MGRC is poor value based on its PE Ratio (19.9x) compared to the US Trade Distributors industry average (19.8x).

PE vs Market: MGRC is poor value based on its PE Ratio (19.9x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: MGRC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MGRC is overvalued based on its PB Ratio (2.6x) compared to the US Trade Distributors industry average (2.4x).


Future Growth

How is McGrath RentCorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGRC's forecast earnings growth (10.9% per year) is above the savings rate (2%).

Earnings vs Market: MGRC's earnings (10.9% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: MGRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MGRC's revenue (5.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MGRC's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGRC's Return on Equity is forecast to be low in 3 years time (18.3%).


Past Performance

How has McGrath RentCorp performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGRC has high quality earnings.

Growing Profit Margin: MGRC's current net profit margins (15.7%) are lower than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: MGRC's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: MGRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGRC had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (82.1%).


Return on Equity

High ROE: MGRC's Return on Equity (13%) is considered low.


Financial Health

How is McGrath RentCorp's financial position?


Financial Position Analysis

Short Term Liabilities: MGRC's short term assets ($230.7M) exceed its short term liabilities ($137.3M).

Long Term Liabilities: MGRC's short term assets ($230.7M) do not cover its long term liabilities ($760.6M).


Debt to Equity History and Analysis

Debt Level: MGRC's net debt to equity ratio (64.2%) is considered high.

Reducing Debt: MGRC's debt to equity ratio has reduced from 88.3% to 64.5% over the past 5 years.

Debt Coverage: MGRC's debt is well covered by operating cash flow (40.3%).

Interest Coverage: MGRC's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet


Dividend

What is McGrath RentCorp current dividend yield, its reliability and sustainability?

2.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGRC's dividend (2.29%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: MGRC's dividend (2.29%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: MGRC's dividends per share have been stable in the past 10 years.

Growing Dividend: MGRC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), MGRC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGRC's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.4yrs

Average management tenure


CEO

Joe Hanna (58 yo)

4.92yrs

Tenure

US$2,668,399

Compensation

Mr. Joseph F. Hanna, also known as Joe, has been the Chief Executive Officer and President of McGrath RentCorp since February 23, 2017. Mr. Hanna served as Chief Operating Officer and Senior Vice President...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD2.67M) is about average for companies of similar size in the US market ($USD3.73M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MGRC's management team is seasoned and experienced (11.4 years average tenure).


Board Members

Experienced Board: MGRC's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McGrath RentCorp's employee growth, exchange listings and data sources


Key Information

  • Name: McGrath RentCorp
  • Ticker: MGRC
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: US$1.840b
  • Shares outstanding: 24.25m
  • Website: https://www.mgrc.com

Number of Employees


Location

  • McGrath RentCorp
  • 5700 Las Positas Road
  • Livermore
  • California
  • 94551-7800
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.