McGrath RentCorp
Market Cap
US$1.6b
Last Updated
2020/11/26 23:05 UTC
Data Sources
Company Financials +
Executive Summary
McGrath RentCorp operates as a business to business rental company in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MGRC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
MGRC
-0.3%
US Commercial Services
2.1%
US Market
1 Year Return
-10.6%
MGRC
11.5%
US Commercial Services
19.8%
US Market
Return vs Industry: MGRC underperformed the US Commercial Services industry which returned 11.5% over the past year.
Return vs Market: MGRC underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| MGRC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | -0.3% | 2.1% |
| 30 Day | 9.4% | 8.5% | 8.1% |
| 90 Day | -2.3% | 6.6% | 6.0% |
| 1 Year | -8.1%-10.6% | 13.3%11.5% | 22.5%19.8% |
| 3 Year | 48.3%37.6% | 54.3%44.6% | 46.5%36.8% |
| 5 Year | 169.2%133.8% | 126.1%103.3% | 96.9%75.3% |
Long-Term 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
2 weeks ago | Simply Wall St
Here's Why McGrath RentCorp (NASDAQ:MGRC) Can Manage Its Debt Responsibly3 weeks ago | Simply Wall St
Earnings Beat: McGrath RentCorp Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models4 weeks ago | Simply Wall St
How Much Does McGrath RentCorp's (NASDAQ:MGRC) CEO Make?Valuation
Is McGrath RentCorp undervalued compared to its fair value and its price relative to the market?
6.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGRC ($65.75) is trading below our estimate of fair value ($70.16)
Significantly Below Fair Value: MGRC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MGRC is good value based on its PE Ratio (16.4x) compared to the US Commercial Services industry average (26.8x).
PE vs Market: MGRC is good value based on its PE Ratio (16.4x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: MGRC is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: MGRC is overvalued based on its PB Ratio (2.4x) compared to the US Commercial Services industry average (1.9x).
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 (2.2%).
Earnings vs Market: MGRC's earnings (6.9% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: MGRC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MGRC's revenue (3.1% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: MGRC's revenue (3.1% 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 (16.1%).
Next Steps
Past Performance
How has McGrath RentCorp performed over the past 5 years?
19.1%
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 higher than last year (17%).
Past Earnings Growth Analysis
Earnings Trend: MGRC's earnings have grown by 19.1% per year over the past 5 years.
Accelerating Growth: MGRC's earnings growth over the past year (2.7%) is below its 5-year average (19.1% per year).
Earnings vs Industry: MGRC earnings growth over the past year (2.7%) exceeded the Commercial Services industry -5.9%.
Return on Equity
High ROE: MGRC's Return on Equity (14.7%) is considered low.
Next Steps
Financial Health
How is McGrath RentCorp's financial position?
Financial Position Analysis
Short Term Liabilities: MGRC's short term assets ($177.6M) exceed its short term liabilities ($108.8M).
Long Term Liabilities: MGRC's short term assets ($177.6M) do not cover its long term liabilities ($524.9M).
Debt to Equity History and Analysis
Debt Level: MGRC's debt to equity ratio (36.3%) is considered satisfactory.
Reducing Debt: MGRC's debt to equity ratio has reduced from 98.2% to 36.3% over the past 5 years.
Debt Coverage: MGRC's debt is well covered by operating cash flow (76.1%).
Interest Coverage: MGRC's interest payments on its debt are well covered by EBIT (14.2x coverage).
Balance Sheet
Next Steps
Dividend
What is McGrath RentCorp current dividend yield, its reliability and sustainability?
2.56%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGRC's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: MGRC's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 (40.7%), 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 (39.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.2yrs
Average management tenure
CEO
Joe Hanna (57 yo)
3.75yrs
Tenure
US$2,555,509
Compensation
Mr. Joseph F. Hanna, also known as Joe, has been the Chief Executive Officer and President of McGrath RentCorp since February 23, 2017. Mr. Hanna served as Chief Operating Officer and Senior Vice President...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD2.56M) is below average for companies of similar size in the US market ($USD4.15M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.75yrs | US$2.56m | 0.27% $ 4.3m | |
| Executive VP & CFO | 14.67yrs | US$1.26m | 0.094% $ 1.5m | |
| VP of Legal Affairs & Risk Management and Secretary | 2.83yrs | US$729.27k | 0.0028% $ 44.5k | |
| VP and Division Manager of Mobile Modular & Enviroplex | 13.42yrs | US$817.24k | 0% $ 0 | |
| VP & Division Manager of TRS-RenTelco | 9yrs | US$620.50k | 0.079% $ 1.2m | |
| VP, Controller & Principal Accounting Officer | 14.67yrs | no data | 0.020% $ 320.9k | |
| Vice President | 0.50yr | no data | no data | |
| VP & Division Manager of Adler Tank Rentals | 11.42yrs | US$698.05k | 0.020% $ 320.9k |
10.2yrs
Average Tenure
53yo
Average Age
Experienced Management: MGRC's management team is seasoned and experienced (10.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.75yrs | US$2.56m | 0.27% $ 4.3m | |
| Independent Non-Executive Chairman of the Board | 11.42yrs | US$239.68k | 0.13% $ 2.0m | |
| Independent Director | 6.75yrs | US$207.52k | 0.021% $ 332.0k | |
| Independent Director | 3.33yrs | US$199.68k | 0.024% $ 381.4k | |
| Independent Director | 18.83yrs | US$202.18k | 0.029% $ 460.2k | |
| Independent Director | 22.83yrs | US$212.18k | 0.075% $ 1.2m | |
| Independent Director | 10.33yrs | US$202.18k | 0.11% $ 1.7m | |
| Independent Director | 2.33yrs | US$199.34k | 0.013% $ 203.9k |
8.5yrs
Average Tenure
65yo
Average Age
Experienced Board: MGRC's board of directors are considered experienced (8.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MGRC insiders have only sold shares 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 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$1.585b
- Shares outstanding: 24.11m
- Website: https://www.mgrc.com
Number of Employees
Location
- McGrath RentCorp
- 5700 Las Positas Road
- Livermore
- California
- 94551-7800
- 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 | 2020/11/26 23:05 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.