NasdaqGS:MGRC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has McGrath RentCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

NasdaqGS:MGRC

1.0%

US Commercial Services

0.8%

US Market


1 Year Return

29.4%

NasdaqGS:MGRC

4.7%

US Commercial Services

1.9%

US Market

MGRC outperformed the Commercial Services industry which returned 4.1% over the past year.

MGRC outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

MGRCIndustryMarket
7 Day5.0%1.0%0.8%
30 Day3.3%0.3%3.4%
90 Day12.1%-0.04%2.1%
1 Year32.7%29.4%8.6%4.7%4.2%1.9%
3 Year135.7%117.8%67.3%55.9%46.7%37.2%
5 Year124.8%93.9%102.1%81.9%62.3%44.5%

Price Volatility Vs. Market

How volatile is McGrath RentCorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is McGrath RentCorp undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

McGrath RentCorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

McGrath RentCorp's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

McGrath RentCorp is good value based on earnings compared to the US Commercial Services industry average.

McGrath RentCorp is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

McGrath RentCorp is poor value based on expected growth next year.


Price Based on Value of Assets

McGrath RentCorp is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

McGrath RentCorp's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

McGrath RentCorp's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

McGrath RentCorp's revenue growth is positive but not above the United States of America market average.

McGrath RentCorp's earnings growth is positive but not above the United States of America market average.

McGrath RentCorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

McGrath RentCorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has McGrath RentCorp performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

McGrath RentCorp has delivered over 20% year on year earnings growth in the past 5 years.

McGrath RentCorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.

McGrath RentCorp's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

McGrath RentCorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

McGrath RentCorp used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

McGrath RentCorp has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is McGrath RentCorp's financial position?


Financial Position Analysis

McGrath RentCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

McGrath RentCorp's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

McGrath RentCorp's level of debt (51%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (75.6% vs 51% today).

Debt is well covered by operating cash flow (59.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

2.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

McGrath RentCorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

McGrath RentCorp's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of McGrath RentCorp's salary, the management and board of directors tenure and is there insider trading?

10.3yrs

Average management tenure


CEO

Joe Hanna (56yo)

2.6yrs

Tenure

US$2,482,289

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

Joe's remuneration is lower than average for companies of similar size in United States of America.

Joe's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

10.3yrs

Average Tenure

54yo

Average Age

The average tenure for the McGrath RentCorp management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.4yrs

Average Tenure

64yo

Average Age

The tenure for the McGrath RentCorp board of directors is about average.


Insider Trading

McGrath RentCorp individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$68,78917 Sep 19
Kay Dashner
EntityIndividual
Role
Head of Human Resources
VP of Human Resources & Secretary
Shares1,000
Max PriceUS$68.79
SellUS$216,93912 Sep 19
Philip Hawkins
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Mobile Modular
Shares3,310
Max PriceUS$65.54
SellUS$265,07221 Aug 19
Keith Pratt
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,951
Max PriceUS$67.15
SellUS$32,90620 Aug 19
David Whitney
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Principal Accounting Officer
Shares504
Max PriceUS$65.29
SellUS$96,47420 Aug 19
Kristina Van Trease-Whitney
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Adler Tank Rentals
Shares1,481
Max PriceUS$65.29
SellUS$94,83512 Aug 19
John Skenesky
EntityIndividual
Role
Other Key Executive
VP & Division Manager of TRS-RenTelco
Shares1,459
Max PriceUS$65.00
SellUS$139,83807 Aug 19
Elizabeth Fetter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,200
Max PriceUS$63.56
SellUS$210,81505 Aug 19
David Whitney
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Principal Accounting Officer
Shares3,061
Max PriceUS$68.87
SellUS$461,86505 Aug 19
Kristina Van Trease-Whitney
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Adler Tank Rentals
Shares6,716
Max PriceUS$68.87
SellUS$149,96905 Aug 19
Dennis Stradford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,200
Max PriceUS$68.17
SellUS$174,18705 Aug 19
Keith Pratt
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,513
Max PriceUS$69.31
SellUS$68,22310 May 19
Kristina Van Trease-Whitney
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Adler Tank Rentals
Shares1,078
Max PriceUS$63.29
SellUS$34,48909 May 19
David Whitney
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Principal Accounting Officer
Shares545
Max PriceUS$63.28
SellUS$16,42009 May 19
Melodie Craft
EntityIndividual
Role
Chief Legal Officer
Vice President of Legal Affairs & Risk Management
Shares257
Max PriceUS$63.89
SellUS$61,76009 May 19
Keith Pratt
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares962
Max PriceUS$64.20
SellUS$235,87409 May 19
John Lieffrig
EntityIndividual
Shares3,731
Max PriceUS$63.22
SellUS$323,45107 May 19
Philip Hawkins
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Mobile Modular
Shares5,101
Max PriceUS$63.41
SellUS$114,02819 Mar 19
David Whitney
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Principal Accounting Officer
Shares1,967
Max PriceUS$57.97
SellUS$248,81219 Mar 19
Kristina Van Trease-Whitney
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Adler Tank Rentals
Shares4,294
Max PriceUS$57.97
SellUS$132,08714 Mar 19
Kristina Van Trease-Whitney
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Adler Tank Rentals
Shares2,258
Max PriceUS$58.50
SellUS$439,91011 Mar 19
Philip Hawkins
EntityIndividual
Role
Other Key Executive
VP & Division Manager of Mobile Modular
Shares7,693
Max PriceUS$57.99
SellUS$101,43507 Mar 19
John Skenesky
EntityIndividual
Role
Other Key Executive
VP & Division Manager of TRS-RenTelco
Shares1,719
Max PriceUS$59.01
SellUS$152,30905 Mar 19
Keith Pratt
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,537
Max PriceUS$60.03
SellUS$164,38210 Dec 18
Dennis Stradford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,200
Max PriceUS$51.37
SellUS$97,57320 Nov 18
Keith Pratt
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,841
Max PriceUS$53.00
SellUS$69,89008 Nov 18
John Lieffrig
EntityIndividual
Shares1,284
Max PriceUS$54.43

Ownership Breakdown


Management Team

  • Keith Pratt (56yo)

    Executive VP & CFO

    • Tenure: 13.5yrs
    • Compensation: US$1.24m
  • Dennis Kakures (62yo)

    Consultant

    • Tenure: 2.6yrs
    • Compensation: US$1.63m
  • Joe Hanna (56yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$2.48m
  • David Whitney (54yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 13.5yrs
  • Kristina Van Trease-Whitney (49yo)

    VP & Division Manager of Adler Tank Rentals

    • Tenure: 10.3yrs
    • Compensation: US$698.05k
  • Philip Hawkins (43yo)

    VP & Division Manager of Mobile Modular

    • Tenure: 12.3yrs
    • Compensation: US$728.60k
  • Kay Dashner (60yo)

    VP of Human Resources & Secretary

    • Tenure: 14.7yrs
  • John Skenesky (52yo)

    VP & Division Manager of TRS-RenTelco

    • Tenure: 7.8yrs
    • Compensation: US$616.50k
  • Melodie Craft (44yo)

    Vice President of Legal Affairs & Risk Management

    • Tenure: 1.7yrs

Board Members

  • Ron Zech (75yo)

    Non-Executive Chairman of the Board

    • Tenure: 10.3yrs
    • Compensation: US$204.91k
  • Liz Fetter (61yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$179.91k
  • Brad Shuster (64yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$174.91k
  • Dennis Stradford (72yo)

    Director

    • Tenure: 17.7yrs
    • Compensation: US$176.91k
  • William Dawson (64yo)

    Director

    • Tenure: 21.7yrs
    • Compensation: US$186.91k
  • Joe Hanna (56yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$2.48m
  • Rick Smith (72yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$176.91k
  • kim Box (59yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$94.35k

Company Information

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


Key Information

  • Name: McGrath RentCorp
  • Ticker: MGRC
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$1.657b
  • Shares outstanding: 24.25m
  • Website: https://www.mgrc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGRCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1984

Biography

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 e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:49
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.