MCGRATH RENTCORP (MGRC) Stock Fundamental Analysis
NASDAQ:MGRC - Nasdaq - US5805891091 - Common Stock - Currency: USD
Taking everything into account, MGRC scores 6 out of 10 in our fundamental rating. MGRC was compared to 49 industry peers in the Trading Companies & Distributors industry. MGRC scores excellent on profitability, but there are some minor concerns on its financial health. MGRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MGRC was profitable.
MGRC had a positive operating cash flow in the past year.
MGRC had positive earnings in each of the past 5 years.
MGRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MGRC has a Return On Assets of 10.57%. This is amongst the best in the industry. MGRC outperforms 85.71% of its industry peers.
MGRC has a Return On Equity of 20.86%. This is in the better half of the industry: MGRC outperforms 75.51% of its industry peers.
MGRC has a Return On Invested Capital of 8.00%. This is in the better half of the industry: MGRC outperforms 65.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGRC is in line with the industry average of 9.66%.
The 3 year average ROIC (7.67%) for MGRC is below the current ROIC(8.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 20.86% | ||
| ROIC | 8% |
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 (25.81%) is better than 97.96% of its industry peers.
MGRC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.54%, MGRC belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
MGRC's Operating Margin has been stable in the last couple of years.
MGRC's Gross Margin of 47.75% is amongst the best of the industry. MGRC outperforms 83.67% of its industry peers.
MGRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 25.81% | ||
| GM | 47.75% |
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.
MGRC has a better debt/assets ratio than last year.
2.2 Solvency
MGRC has an Altman-Z score of 2.94. This is not the best score and indicates that MGRC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.94, MGRC perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
MGRC has a debt to FCF ratio of 2.48. This is a good value and a sign of high solvency as MGRC would need 2.48 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.48, MGRC is doing good in the industry, outperforming 69.39% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that MGRC is not too dependend on debt financing.
The Debt to Equity ratio of MGRC (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.82
WACC9.75%
2.3 Liquidity
A Current Ratio of 1.56 indicates that MGRC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.56, MGRC is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
A Quick Ratio of 1.44 indicates that MGRC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, MGRC is in line with its industry, outperforming 59.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
MGRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.70%, which is quite impressive.
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.
Looking at the last year, MGRC shows a small growth in Revenue. The Revenue has grown by 7.32% in the last year.
The Revenue has been growing by 9.82% on average over the past years. This is quite good.
EPS 1Y (TTM)21.7%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%112.96%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%4.04%
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 17.90% on average per year.
MGRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y27.87%
EPS Next 2Y17.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.67%
Revenue Next 2Y4.59%
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
With a Price/Earnings ratio of 20.93, MGRC is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MGRC.
MGRC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.30, which is the current average of the S&P500 Index.
MGRC is valuated correctly with a Price/Forward Earnings ratio of 16.96.
MGRC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.06. MGRC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
MGRC's Enterprise Value to EBITDA is on the same level as the industry average.
MGRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGRC is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 10.1 |
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.
MGRC's earnings are expected to grow with 17.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)4.97
EPS Next 2Y17.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MGRC has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.69, MGRC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, MGRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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.
MGRC has decreased its dividend recently.
Dividend Growth(5Y)5.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
19.85% 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.
DP19.85%
EPS Next 2Y17.9%
EPS Next 3YN/A
NASDAQ:MGRC (6/6/2025, 12:49:33 PM)
113.86
+0.24 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners89.08%
Inst Owner Change1.55%
Ins Owners1.31%
Ins Owner Change7.43%
Market Cap2.80B
Analysts85
Price Target148.58 (30.49%)
Short Float %2.45%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend1.91
Dividend Growth(5Y)5.43%
DP19.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.02%
Min EPS beat(2)4.19%
Max EPS beat(2)17.85%
EPS beat(4)2
Avg EPS beat(4)-16.04%
Min EPS beat(4)-52.07%
Max EPS beat(4)17.85%
EPS beat(8)4
Avg EPS beat(8)-8.56%
EPS beat(12)7
Avg EPS beat(12)-6.36%
EPS beat(16)8
Avg EPS beat(16)-6.13%
Revenue beat(2)1
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)1.08%
Revenue beat(4)2
Avg Revenue beat(4)2.96%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)14.83%
Revenue beat(8)6
Avg Revenue beat(8)4.21%
Revenue beat(12)8
Avg Revenue beat(12)1.6%
Revenue beat(16)9
Avg Revenue beat(16)0.26%
PT rev (1m)-0.46%
PT rev (3m)3.55%
EPS NQ rev (1m)-3.66%
EPS NQ rev (3m)-13.54%
EPS NY rev (1m)1.71%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 16.96 | ||
| P/S | 3.05 | ||
| P/FCF | 12.41 | ||
| P/OCF | 7.6 | ||
| P/B | 2.47 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)5.44
EY4.78%
EPS(NY)6.71
Fwd EY5.9%
FCF(TTM)9.17
FCFY8.06%
OCF(TTM)14.99
OCFY13.16%
SpS37.32
BVpS46.18
TBVpS30.94
PEG (NY)0.75
PEG (5Y)4.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 20.86% | ||
| ROCE | 10.76% | ||
| ROIC | 8% | ||
| ROICexc | 8.01% | ||
| ROICexgc | 9.76% | ||
| OM | 24.54% | ||
| PM (TTM) | 25.81% | ||
| GM | 47.75% | ||
| FCFM | 24.58% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 134.12% | ||
| Cap/Sales | 15.58% | ||
| Interest Coverage | 5.21 | ||
| Cash Conversion | 111.08% | ||
| Profit Quality | 95.22% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 2.94 |
F-Score6
WACC9.75%
ROIC/WACC0.82
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)21.7%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%112.96%
EPS Next Y27.87%
EPS Next 2Y17.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.32%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%4.04%
Revenue Next Year3.67%
Revenue Next 2Y4.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.88%
EBIT growth 3Y20.47%
EBIT growth 5Y10.69%
EBIT Next Year55.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y438.49%
FCF growth 3Y23.21%
FCF growth 5Y77.11%
OCF growth 1Y106.75%
OCF growth 3Y24.14%
OCF growth 5Y14.77%