MCGRATH RENTCORP (MGRC) Stock Fundamental Analysis
NASDAQ:MGRC - Nasdaq - US5805891091 - Common Stock - Currency: USD
MGRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. While MGRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MGRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MGRC was profitable.
MGRC had a positive operating cash flow in the past year.
Each year in the past 5 years MGRC has been profitable.
Each year in the past 5 years MGRC had a positive operating cash flow.
1.2 Ratios
MGRC's Return On Assets of 10.85% is amongst the best of the industry. MGRC outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 21.70%, MGRC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Invested Capital of MGRC (8.30%) is better than 64.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGRC is in line with the industry average of 9.53%.
The 3 year average ROIC (7.67%) for MGRC is below the current ROIC(8.30%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 26.81%, MGRC belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
MGRC's Profit Margin has improved in the last couple of years.
MGRC has a better Operating Margin (25.54%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of MGRC has remained more or less at the same level.
With an excellent Gross Margin value of 47.36%, MGRC belongs to the best of the industry, outperforming 83.33% 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.
MGRC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MGRC has been increased compared to 5 years ago.
The debt/assets ratio for MGRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.00 indicates that MGRC is not in any danger for bankruptcy at the moment.
The Altman-Z score of MGRC (3.00) is comparable to the rest of the industry.
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 70.83% 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.
MGRC has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3 |
ROIC/WACC0.97
WACC8.56%
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 72.92% of its industry peers.
A Quick Ratio of 1.36 indicates that MGRC should not have too much problems paying its short term obligations.
MGRC has a Quick ratio of 1.36. This is comparable to the rest of the industry: MGRC outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
MGRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.32%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.21% on average over the past years.
MGRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.78%.
The Revenue has been growing by 9.82% on average over the past years. This is quite good.
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
MGRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.90% yearly.
MGRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.54% yearly.
EPS Next Y27.87%
EPS Next 2Y17.9%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MGRC is valuated rather expensively with a Price/Earnings ratio of 19.80.
Based on the Price/Earnings ratio, MGRC is valued a bit cheaper than 64.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. MGRC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.87 indicates a rather expensive valuation of MGRC.
MGRC's Price/Forward Earnings is on the same level as the industry average.
MGRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than MGRC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MGRC is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 10.51 |
4.3 Compensation for Growth
MGRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MGRC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MGRC's earnings are expected to grow with 17.90% in the coming years.
PEG (NY)0.71
PEG (5Y)4.7
EPS Next 2Y17.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MGRC has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.00, MGRC pays a better dividend. On top of this MGRC pays more dividend than 83.33% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, MGRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
MGRC pays out 18.75% of its income as dividend. This is a sustainable payout ratio.
The dividend of MGRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.75%
EPS Next 2Y17.9%
EPS Next 3YN/A
120.01
-4.78 (-3.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change-1.27%
Ins Owners1.37%
Ins Owner Change7.22%
Market Cap2.95B
Analysts85
Price Target146.88 (22.39%)
Short Float %1.67%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)-1.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.87 | ||
| P/S | 3.14 | ||
| P/FCF | 13.57 | ||
| P/OCF | 8.55 | ||
| P/B | 2.54 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)6.06
EY5.05%
EPS(NY)6.71
Fwd EY5.59%
FCF(TTM)8.84
FCFY7.37%
OCF(TTM)14.04
OCFY11.7%
SpS38.26
BVpS47.26
TBVpS31.65
PEG (NY)0.71
PEG (5Y)4.7
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 |
F-Score6
WACC8.56%
ROIC/WACC0.97
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 Y27.87%
EPS Next 2Y17.9%
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 Year55.05%
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%