McGrath RentCorp
Market Cap
US$1.8b
Last Updated
2019/12/12 23:42 UTC
Data Sources
Company Financials +
Executive Summary
McGrath RentCorp operates as a business to business rental company in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: MGRC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.6%
MGRC
-0.1%
US Commercial Services
1.3%
US Market
1 Year Return
41.9%
MGRC
22.9%
US Commercial Services
19.4%
US Market
Return vs Industry: MGRC exceeded the US Commercial Services industry which returned 22.8% over the past year.
Return vs Market: MGRC exceeded the US Market which returned 17.8% over the past year.
Shareholder returns
| MGRC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | -0.1% | 1.3% |
| 30 Day | 1.9% | 1.1% | 2.6% |
| 90 Day | 7.9% | 3.7% | 5.0% |
| 1 Year | 45.4%41.9% | 27.5%22.9% | 22.0%19.4% |
| 3 Year | 106.4%91.2% | 55.6%46.0% | 46.8%37.3% |
| 5 Year | 143.7%110.5% | 98.3%78.0% | 66.3%48.0% |
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
1 week ago | Simply Wall St
Did McGrath RentCorp (NASDAQ:MGRC) Insiders Sell Shares?2 weeks ago | Simply Wall St
These 4 Measures Indicate That McGrath RentCorp (NASDAQ:MGRC) Is Using Debt Reasonably Well1 month ago | Simply Wall St
Is McGrath RentCorp's (NASDAQ:MGRC) 101% Share Price Increase Well Justified?Valuation
Is McGrath RentCorp undervalued compared to its fair value and its price relative to the market?
30.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGRC ($74.78) is trading below our estimate of fair value ($106.9)
Significantly Below Fair Value: MGRC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MGRC is good value based on its PE Ratio (19.1x) compared to the Commercial Services industry average (26.4x).
PE vs Market: MGRC is poor value based on its PE Ratio (19.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MGRC is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: MGRC is overvalued based on its PB Ratio (2.9x) compared to the US Commercial Services industry average (2x).
Next Steps
Future Growth
How is McGrath RentCorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
6.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGRC's forecast earnings growth (6.9% per year) is above the savings rate (1.7%).
Earnings vs Market: MGRC's earnings (6.9% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: MGRC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MGRC's revenue (4.4% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: MGRC's revenue (4.4% 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 (14.6%).
Next Steps
Past Performance
How has McGrath RentCorp performed over the past 5 years?
26.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGRC has high quality earnings.
Growing Profit Margin: MGRC's current net profit margins (17%) are lower than last year (35.5%).
Past Earnings Growth Analysis
Earnings Trend: MGRC's earnings have grown significantly by 26% 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 (-45.2%) over the past year, making it difficult to compare to the Commercial Services industry average (-3.1%).
Return on Equity
High ROE: MGRC's Return on Equity (15.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is McGrath RentCorp's financial position?
Financial Position Analysis
Short Term Liabilities: MGRC's short term assets ($173.7M) exceed its short term liabilities ($101.1M).
Long Term Liabilities: MGRC's short term assets ($173.7M) do not cover its long term liabilities ($588.5M).
Debt to Equity History and Analysis
Debt Level: MGRC's debt to equity ratio (48.9%) is considered high.
Reducing Debt: MGRC's debt to equity ratio has reduced from 77.7% to 48.9% over the past 5 years.
Debt Coverage: MGRC's debt is well covered by operating cash flow (60.6%).
Interest Coverage: MGRC's interest payments on its debt are well covered by EBIT (11x coverage).
Balance Sheet
Inventory Level: MGRC has a low level of unsold assets or inventory.
Debt Coverage by Assets: MGRC's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is McGrath RentCorp's current dividend yield, its reliability and sustainability?
2.01%
Current Dividend Yield
Upcoming Dividend Payment
Purchase McGrath RentCorp before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MGRC's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: MGRC's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.72%).
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 (37.5%), 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 (34.9% payout ratio).
Next Steps
Management
What is the CEO of McGrath RentCorp's salary, the management and board of directors tenure and is there insider trading?
10.5yrs
Average management tenure
CEO
Joe Hanna (56yo)
2.8yrs
Tenure
US$2,482,289
Compensation
Mr. Joseph F. Hanna, also known as Joe, has been the Chief Executive Officer and President of McGrath RentCorp since February 23, 2017. Mr. Hanna served as Chief Operating Officer and Senior Vice President ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD2.48M) is below average for companies of similar size in the US market ($USD3.87M).
Compensation vs Earnings: 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
10.5yrs
Average Tenure
54yo
Average Age
Experienced Management: MGRC's management team is seasoned and experienced (10.5 years average tenure).
Board Age and Tenure
7.6yrs
Average Tenure
64yo
Average Age
Experienced Board: MGRC's board of directors are considered experienced (7.6 years average tenure).
Insider Trading
Insider Buying: MGRC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman of the Board |
| Shares | 4,000 |
| Max Price | US$77.08 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 2,193 |
| Max Price | US$75.25 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Principal Accounting Officer |
| Shares | 1,638 |
| Max Price | US$75.58 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 200 |
| Max Price | US$75.59 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Adler Tank Rentals |
| Shares | 1,638 |
| Max Price | US$75.58 |
| Entity | Individual |
| Role | Head of Human Resources VP of Human Resources & Secretary |
| Shares | 1,000 |
| Max Price | US$68.79 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Mobile Modular |
| Shares | 3,310 |
| Max Price | US$65.54 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 3,951 |
| Max Price | US$67.15 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Principal Accounting Officer |
| Shares | 504 |
| Max Price | US$65.29 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Adler Tank Rentals |
| Shares | 1,481 |
| Max Price | US$65.29 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of TRS-RenTelco |
| Shares | 1,459 |
| Max Price | US$65.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,200 |
| Max Price | US$63.56 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Adler Tank Rentals |
| Shares | 6,716 |
| Max Price | US$68.87 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Principal Accounting Officer |
| Shares | 3,061 |
| Max Price | US$68.87 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 2,513 |
| Max Price | US$69.31 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,200 |
| Max Price | US$68.17 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Adler Tank Rentals |
| Shares | 1,078 |
| Max Price | US$63.29 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Principal Accounting Officer |
| Shares | 545 |
| Max Price | US$63.28 |
| Entity | Individual |
| Role | Chief Legal Officer Vice President of Legal Affairs & Risk Management |
| Shares | 257 |
| Max Price | US$63.89 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 962 |
| Max Price | US$64.20 |
| Entity | Individual |
| Shares | 3,731 |
| Max Price | US$63.22 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Mobile Modular |
| Shares | 5,101 |
| Max Price | US$63.41 |
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Principal Accounting Officer |
| Shares | 1,967 |
| Max Price | US$57.97 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Adler Tank Rentals |
| Shares | 4,294 |
| Max Price | US$57.97 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Adler Tank Rentals |
| Shares | 2,258 |
| Max Price | US$58.50 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of Mobile Modular |
| Shares | 7,693 |
| Max Price | US$57.99 |
| Entity | Individual |
| Role | Other Key Executive VP & Division Manager of TRS-RenTelco |
| Shares | 1,719 |
| Max Price | US$59.01 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 2,537 |
| Max Price | US$60.03 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Keith Pratt (56yo)
Executive VP & CFO
- Tenure: 13.8yrs
- Compensation: US$1.24m
Dennis Kakures (62yo)
Consultant
- Tenure: 2.8yrs
- Compensation: US$1.63m
Joe Hanna (56yo)
President
- Tenure: 2.8yrs
- Compensation: US$2.48m
David Whitney (54yo)
VP, Controller & Principal Accounting Officer
- Tenure: 13.8yrs
Kristina Van Trease-Whitney (49yo)
VP & Division Manager of Adler Tank Rentals
- Tenure: 10.5yrs
- Compensation: US$698.05k
Philip Hawkins (43yo)
VP & Division Manager of Mobile Modular
- Tenure: 12.5yrs
- Compensation: US$728.60k
Kay Dashner (60yo)
VP of Human Resources & Secretary
- Tenure: 14.9yrs
John Skenesky (52yo)
VP & Division Manager of TRS-RenTelco
- Tenure: 8.1yrs
- Compensation: US$616.50k
Melodie Craft (44yo)
Vice President of Legal Affairs & Risk Management
- Tenure: 1.9yrs
Board Members
Ron Zech (75yo)
Non-Executive Chairman of the Board
- Tenure: 10.5yrs
- Compensation: US$204.91k
Liz Fetter (61yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$179.91k
Brad Shuster (64yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$174.91k
Dennis Stradford (72yo)
Independent Director
- Tenure: 17.9yrs
- Compensation: US$176.91k
William Dawson (64yo)
Independent Director
- Tenure: 21.9yrs
- Compensation: US$186.91k
Joe Hanna (56yo)
President
- Tenure: 2.8yrs
- Compensation: US$2.48m
Rick Smith (72yo)
Independent Director
- Tenure: 9.4yrs
- Compensation: US$176.91k
kim Box (59yo)
Independent Director
- Tenure: 1.4yrs
- 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$1.816b
- Shares outstanding: 24.28m
- Website: https://www.mgrc.com
Number of Employees
Location
- McGrath RentCorp
- 5700 Las Positas Road
- Livermore
- California
- 94551
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGRC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/12 23:42 |
| End of Day Share Price | 2019/12/12 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.