MCGRATH RENTCORP (MGRC) Stock Fundamental Analysis
USA - NASDAQ:MGRC - US5805891091 - Common Stock
115.28 USD
-0.64 (-0.55%)
115.28 USD
0 (0%)
Overall MGRC gets a fundamental rating of 6 out of 10. We evaluated MGRC against 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
MGRC had positive earnings in the past year.
In the past year MGRC had a positive cash flow from operations.
In the past 5 years MGRC has always been profitable.
In the past 5 years MGRC always reported a positive cash flow from operatings.
1.2 Ratios
MGRC has a better Return On Assets (10.85%) than 91.84% of its industry peers.
MGRC's Return On Equity of 21.70% is fine compared to the rest of the industry. MGRC outperforms 79.59% 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 67.35% of its industry peers.
MGRC had an Average Return On Invested Capital over the past 3 years of 7.67%. This is below the industry average of 10.06%.
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
MGRC's Profit Margin of 26.81% is amongst the best of the industry. MGRC outperforms 95.92% of its industry peers.
In the last couple of years the Profit Margin of MGRC has grown nicely.
MGRC has a Operating Margin of 25.54%. This is amongst the best in the industry. MGRC outperforms 85.71% of its industry peers.
MGRC's Operating Margin has been stable in the last couple of years.
MGRC's Gross Margin of 47.36% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGRC is destroying value.
Compared to 1 year ago, MGRC has more shares outstanding
Compared to 5 years ago, MGRC has more shares outstanding
MGRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.88 indicates that MGRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGRC has a Altman-Z score (2.88) which 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.
The Debt to FCF ratio of MGRC (2.63) is better than 73.47% 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.
With a Debt to Equity ratio value of 0.49, MGRC perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.85
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.43 indicates that MGRC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, MGRC is doing worse than 67.35% of the companies in the same industry.
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 has a Quick ratio (1.36) which is in line with 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.
MGRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.21% yearly.
MGRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.78%.
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
MGRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.37% 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 Y30.67%
EPS Next 2Y19.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.83%
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.
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
The Price/Earnings ratio is 19.02, which indicates a rather expensive current valuation of MGRC.
Compared to the rest of the industry, the Price/Earnings ratio of MGRC indicates a somewhat cheap valuation: MGRC is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MGRC to the average of the S&P500 Index (27.86), we can say MGRC is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.75 indicates a correct valuation of MGRC.
67.35% of the companies in the same industry are more expensive than MGRC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, MGRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
75.51% of the companies in the same industry are more expensive than MGRC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGRC indicates a rather cheap valuation: MGRC is cheaper than 83.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.04 | ||
| EV/EBITDA | 9.88 |
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 19.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)4.52
EPS Next 2Y19.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MGRC has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.74, MGRC pays a better dividend. On top of this MGRC pays more dividend than 85.71% of the companies listed in the same industry.
MGRC's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
MGRC pays out 18.75% of its income as dividend. This is a sustainable payout ratio.
MGRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.75%
EPS Next 2Y19.37%
EPS Next 3YN/A
115.28
-0.64 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change0.97%
Ins Owners1.27%
Ins Owner Change-6.39%
Market Cap2.84B
Analysts85
Price Target146.88 (27.41%)
Short Float %1.49%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)0%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)1.06%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.75 | ||
| P/S | 3.01 | ||
| P/FCF | 13.04 | ||
| P/OCF | 8.21 | ||
| P/B | 2.44 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)6.06
EY5.26%
EPS(NY)6.88
Fwd EY5.97%
FCF(TTM)8.84
FCFY7.67%
OCF(TTM)14.04
OCFY12.18%
SpS38.26
BVpS47.26
TBVpS31.65
PEG (NY)0.62
PEG (5Y)4.52
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 | 2.88 |
F-Score6
WACC9.79%
ROIC/WACC0.85
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 Y30.67%
EPS Next 2Y19.37%
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 Year3.83%
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 Year55.55%
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%