MCGRATH RENTCORP (MGRC) Stock Fundamental Analysis
NASDAQ:MGRC - US5805891091 - Common Stock
125.68 USD
+0.06 (+0.05%)
125.68 USD
0 (0%)
Taking everything into account, MGRC scores 6 out of 10 in our fundamental rating. MGRC was compared to 50 industry peers in the Trading Companies & Distributors industry. MGRC has an excellent profitability rating, but there are some minor concerns on its financial health. MGRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MGRC had positive earnings in the past year.
MGRC had a positive operating cash flow in the past year.
MGRC had positive earnings in each of the past 5 years.
In the past 5 years MGRC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.85%, MGRC belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
MGRC's Return On Equity of 21.70% is fine compared to the rest of the industry. MGRC outperforms 80.00% of its industry peers.
MGRC has a Return On Invested Capital of 8.30%. This is in the better half of the industry: MGRC outperforms 68.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGRC is below the industry average of 9.98%.
The last Return On Invested Capital (8.30%) for MGRC is above the 3 year average (7.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 21.7% | ||
| ROIC | 8.3% |
ROA(3y)8.26%
ROA(5y)7.68%
ROE(3y)17.88%
ROE(5y)16.17%
ROIC(3y)7.67%
ROIC(5y)7.89%
1.3 Margins
The Profit Margin of MGRC (26.81%) is better than 96.00% of its industry peers.
MGRC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.54%, MGRC belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
MGRC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 47.36%, MGRC belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MGRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.54% | ||
| PM (TTM) | 26.81% | ||
| GM | 47.36% |
OM growth 3Y5.79%
OM growth 5Y0.79%
PM growth 3Y20.49%
PM growth 5Y8.42%
GM growth 3Y1.61%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGRC is destroying value.
The number of shares outstanding for MGRC has been increased compared to 1 year ago.
Compared to 5 years ago, MGRC has more shares outstanding
The debt/assets ratio for MGRC has been reduced compared to a year ago.
2.2 Solvency
MGRC has an Altman-Z score of 3.01. This indicates that MGRC is financially healthy and has little risk of bankruptcy at the moment.
MGRC's Altman-Z score of 3.01 is in line compared to the rest of the industry. MGRC outperforms 50.00% of its industry peers.
The Debt to FCF ratio of MGRC is 2.63, which is a good value as it means it would take MGRC, 2.63 years of fcf income to pay off all of its debts.
MGRC has a Debt to FCF ratio of 2.63. This is in the better half of the industry: MGRC outperforms 74.00% of its industry peers.
MGRC has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, MGRC is in line with its industry, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.86
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.43 indicates that MGRC should not have too much problems paying its short term obligations.
MGRC has a Current ratio of 1.43. This is in the lower half of the industry: MGRC underperforms 68.00% of its industry peers.
MGRC has a Quick Ratio of 1.36. This is a normal value and indicates that MGRC is financially healthy and should not expect problems in meeting its short term obligations.
MGRC's Quick ratio of 1.36 is in line compared to the rest of the industry. MGRC outperforms 58.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.32% over the past year.
Measured over the past 5 years, MGRC shows a small growth in Earnings Per Share. The EPS has been growing by 4.21% on average per year.
The Revenue has grown by 8.78% in the past year. This is quite good.
MGRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.82% yearly.
EPS 1Y (TTM)45.32%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%73.81%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%10.82%
3.2 Future
Based on estimates for the next years, MGRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.82% on average per year.
The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y29.3%
EPS Next 2Y18.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y4.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.74, the valuation of MGRC can be described as rather expensive.
68.00% of the companies in the same industry are more expensive than MGRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. MGRC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.43, MGRC is valued on the expensive side.
MGRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGRC is cheaper than 62.00% of the companies in the same industry.
MGRC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than MGRC, based on the Enterprise Value to EBITDA ratio.
MGRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGRC is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.21 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of MGRC may justify a higher PE ratio.
MGRC's earnings are expected to grow with 18.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)4.93
EPS Next 2Y18.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MGRC has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
MGRC's Dividend Yield is rather good when compared to the industry average which is at 1.69. MGRC pays more dividend than 86.00% of the companies in the same industry.
MGRC's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of MGRC has a limited annual growth rate of 5.43%.
MGRC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MGRC decreased recently.
Dividend Growth(5Y)5.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
18.75% of the earnings are spent on dividend by MGRC. This is a low number and sustainable payout ratio.
MGRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.75%
EPS Next 2Y18.82%
EPS Next 3YN/A
125.68
+0.06 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners90.21%
Inst Owner Change0.97%
Ins Owners1.37%
Ins Owner Change-6.39%
Market Cap3.09B
Analysts85
Price Target146.88 (16.87%)
Short Float %1.33%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend1.91
Dividend Growth(5Y)5.43%
DP18.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.2%
Min EPS beat(2)17.85%
Max EPS beat(2)18.54%
EPS beat(4)3
Avg EPS beat(4)-2.87%
Min EPS beat(4)-52.07%
Max EPS beat(4)18.54%
EPS beat(8)4
Avg EPS beat(8)-7.86%
EPS beat(12)7
Avg EPS beat(12)-6.24%
EPS beat(16)9
Avg EPS beat(16)-4.92%
Revenue beat(2)2
Avg Revenue beat(2)2.87%
Min Revenue beat(2)1.08%
Max Revenue beat(2)4.66%
Revenue beat(4)3
Avg Revenue beat(4)4.34%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)14.83%
Revenue beat(8)6
Avg Revenue beat(8)4.51%
Revenue beat(12)9
Avg Revenue beat(12)2.8%
Revenue beat(16)9
Avg Revenue beat(16)0.09%
PT rev (1m)0%
PT rev (3m)-1.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.63%
EPS NY rev (1m)1.11%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 18.43 | ||
| P/S | 3.29 | ||
| P/FCF | 14.21 | ||
| P/OCF | 8.95 | ||
| P/B | 2.66 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)6.06
EY4.82%
EPS(NY)6.82
Fwd EY5.43%
FCF(TTM)8.84
FCFY7.04%
OCF(TTM)14.04
OCFY11.17%
SpS38.26
BVpS47.26
TBVpS31.65
PEG (NY)0.71
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 21.7% | ||
| ROCE | 11.17% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.31% | ||
| ROICexgc | 10.11% | ||
| OM | 25.54% | ||
| PM (TTM) | 26.81% | ||
| GM | 47.36% | ||
| FCFM | 23.11% |
ROA(3y)8.26%
ROA(5y)7.68%
ROE(3y)17.88%
ROE(5y)16.17%
ROIC(3y)7.67%
ROIC(5y)7.89%
ROICexc(3y)7.68%
ROICexc(5y)7.89%
ROICexgc(3y)9.14%
ROICexgc(5y)9.05%
ROCE(3y)10.32%
ROCE(5y)10.61%
ROICexcg growth 3Y7.29%
ROICexcg growth 5Y2.3%
ROICexc growth 3Y5.15%
ROICexc growth 5Y-1.08%
OM growth 3Y5.79%
OM growth 5Y0.79%
PM growth 3Y20.49%
PM growth 5Y8.42%
GM growth 3Y1.61%
GM growth 5Y0.47%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.63 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 120.53% | ||
| Cap/Sales | 13.58% | ||
| Interest Coverage | 6.34 | ||
| Cash Conversion | 99.67% | ||
| Profit Quality | 86.2% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 3.01 |
F-Score6
WACC9.69%
ROIC/WACC0.86
Cap/Depr(3y)216.69%
Cap/Depr(5y)173.54%
Cap/Sales(3y)28.76%
Cap/Sales(5y)24.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.32%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%73.81%
EPS Next Y29.3%
EPS Next 2Y18.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%10.82%
Revenue Next Year3.85%
Revenue Next 2Y4.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.9%
EBIT growth 3Y20.47%
EBIT growth 5Y10.69%
EBIT Next Year55.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y466.95%
FCF growth 3Y23.21%
FCF growth 5Y77.11%
OCF growth 1Y87.84%
OCF growth 3Y24.14%
OCF growth 5Y14.77%