Mcgrath Rentcorp

Consumer Discretionary
Diversified Commercial Services
www.mgrc.com

Earnings Score
Moat Score

Market Cap $2.66B
PE 11
Debt -
Cash $3.39M
EV -
FCF $349.89M

Earnings

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Sales & Net Margins

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Earnings	$237.09M
EBIT	$363.73M
ROE	21%
ROA	16%
FCF	$349.89M
Equity	$1.14B
Growth Stability	93%
PE	11.2
PEG	0.54
PB	2.34
P/FCF	7.59
P/S	2.89
Price/Cash	0
Net Margins	14%
Gross Margins	48%
Op. Margins	40%
Earnings CAGR	15%
Sales Growth YoY	4%
Sales Growth QoQ	-20%
Sales CAGR	10%
FCF CAGR	4%
Equity CAGR	12%
Earnings Stability	0.52
Earnings Growth YoY	23%

Earnings Growth QoQ	-28%
Earnings CAGR 5Y	21%
Sales CAGR 5Y	13%
FCF CAGR 5Y	-1%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	14%
Equity CAGR 3Y	16%
Market Cap	$2.66B
Revenue	$918.53M
Dividend Yield	2%
Payout Ratio	20%
Assets	$2.24B
Cash	$3.39M
Shares Outstanding	24.53M
Earnings Score	74%
Moat Score	95%
Gross Profit	$438.58M
Shares Growth 3y	0%
Equity Growth QoQ	1%
Equity Growth YoY	21%

Assets & ROA

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Stockholders Equity & ROE

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McGrath RentCorp is a rental company. It is comprised of four reportable business segments: Modular building and portable storage segment (Mobile Modular), Electronic test equipment segment (TRS-RenTelco), Containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks) and Classroom manufacturing division selling modular classrooms in California (Enviroplex). The company generates its revenues primarily from the rental of its equipment on operating leases with sales of equipment occurring in the normal course of business.

SEC Filings

Direct access to Mcgrath Rentcorp (MGRC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Mcgrath Rentcorp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Mcgrath Rentcorp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%

Stability 52%

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Mcgrath Rentcorp Discounted Cash Flow

Fully customizable DCF calculator online for Mcgrath Rentcorp.

Years

Calculation mode

= $4.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$350M	$365M	$380M	$397M	$414M	$431M	$450M	$469M	$489M	$510M	$532M	$5.3B
DCF		$332M	$314M	$298M	$282M	$268M	$254M	$241M	$228M	$216M	$205M	$2B
Value	$4.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	10%	9%	33%	16%	17%	18%	15%	16%	21%	25%	14%
ROA	-	7%	8%	10%	11%	11%	8%	10%	12%	16%	16%
ROE	-	10%	29%	14%	15%	15%	12%	14%	19%	21%	21%

Good Net Margins (14.44%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	93%	97%	100%	100%	100%	93%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (93%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	5%	9%	8%	14%	0%	8%	19%	13%	10%	13%
Earnings YoY growth	-	-5%	302%	-48%	22%	5%	-12%	28%	52%	33%	21%
Equity YoY growth	-	4%	33%	9%	11%	8%	7%	10%	16%	20%	13%
FCF YoY growth	-	-3%	-18%	18%	39%	-5%	16%	-8%	-71%	551%	-1%