104.23 USD
+4.56 (+4.58%)
104.23 USD
0 (0%)
MGRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 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 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.
In the past year MGRC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 6.19%, MGRC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
With a Return On Equity value of 12.16%, MGRC perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
MGRC has a better Return On Invested Capital (7.93%) than 61.22% 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 9.22%.
The last Return On Invested Capital (7.93%) for MGRC is above the 3 year average (7.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 12.16% | ||
| ROIC | 7.93% |
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 15.62%, MGRC belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
MGRC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.97%, MGRC belongs to the top of the industry, outperforming 83.67% 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 47.37% is amongst the best of the industry. MGRC outperforms 89.80% of its industry peers.
MGRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.97% | ||
| PM (TTM) | 15.62% | ||
| GM | 47.37% |
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 2.69. 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.
MGRC has a Altman-Z score (2.69) which is in line with its industry peers.
The Debt to FCF ratio of MGRC is 9.40, which is on the high side as it means it would take MGRC, 9.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.40, MGRC is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
MGRC has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
MGRC has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 9.4 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.8
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.55 indicates that MGRC should not have too much problems paying its short term obligations.
MGRC has a Current ratio of 1.55. This is comparable to the rest of the industry: MGRC outperforms 44.90% of its industry peers.
MGRC has a Quick Ratio of 1.47. This is a normal value and indicates that MGRC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MGRC (1.47) is better than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
MGRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.89%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.21% on average over the past years.
MGRC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
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)29.89%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%-8.02%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%-3.87%
3.2 Future
The Earnings Per Share is expected to grow by 15.65% on average over the next years. This is quite good.
Based on estimates for the next years, MGRC will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
EPS Next Y28.13%
EPS Next 2Y17.97%
EPS Next 3Y15.65%
EPS Next 5YN/A
Revenue Next Year3.03%
Revenue Next 2Y3.66%
Revenue Next 3Y4.1%
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 17.64.
Based on the Price/Earnings ratio, MGRC is valued a bit cheaper than 67.35% of the companies in the same industry.
MGRC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.51 indicates a correct valuation of MGRC.
Based on the Price/Forward Earnings ratio, MGRC is valued a bit cheaper than 69.39% of the companies in the same industry.
MGRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGRC indicates a somewhat cheap valuation: MGRC is cheaper than 71.43% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MGRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.72 | ||
| EV/EBITDA | 8.84 |
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.
The excellent profitability rating of MGRC may justify a higher PE ratio.
A more expensive valuation may be justified as MGRC's earnings are expected to grow with 15.65% in the coming years.
PEG (NY)0.63
PEG (5Y)4.19
EPS Next 2Y17.97%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, MGRC has a reasonable but not impressive dividend return.
MGRC's Dividend Yield is rather good when compared to the industry average which is at 2.08. MGRC pays more dividend than 85.71% of the companies in the same industry.
MGRC's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of MGRC has a limited annual growth rate of 5.43%.
MGRC has been paying a dividend for at least 10 years, so it has 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
32.75% of the earnings are spent on dividend by MGRC. This is a low number and sustainable payout ratio.
The dividend of MGRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.75%
EPS Next 2Y17.97%
EPS Next 3Y15.65%
104.23
+4.56 (+4.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change0.08%
Ins Owners1.27%
Ins Owner Change-3.64%
Market Cap2.57B
Revenue(TTM)931.22M
Net Income(TTM)145.43M
Analysts85
Price Target149.69 (43.62%)
Short Float %1.4%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend1.91
Dividend Growth(5Y)5.43%
DP32.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.78%
Min EPS beat(2)-8.97%
Max EPS beat(2)18.54%
EPS beat(4)3
Avg EPS beat(4)7.9%
Min EPS beat(4)-8.97%
Max EPS beat(4)18.54%
EPS beat(8)3
Avg EPS beat(8)-11.09%
EPS beat(12)6
Avg EPS beat(12)-7.39%
EPS beat(16)9
Avg EPS beat(16)-3.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-5.7%
Max Revenue beat(2)4.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-5.7%
Max Revenue beat(4)4.66%
Revenue beat(8)5
Avg Revenue beat(8)2.39%
Revenue beat(12)9
Avg Revenue beat(12)3.06%
Revenue beat(16)9
Avg Revenue beat(16)0.01%
PT rev (1m)1.21%
PT rev (3m)1.91%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.37%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 15.51 | ||
| P/S | 2.75 | ||
| P/FCF | 43.72 | ||
| P/OCF | 12.13 | ||
| P/B | 2.14 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)5.91
EY5.67%
EPS(NY)6.72
Fwd EY6.45%
FCF(TTM)2.38
FCFY2.29%
OCF(TTM)8.6
OCFY8.25%
SpS37.84
BVpS48.61
TBVpS33.1
PEG (NY)0.63
PEG (5Y)4.19
Graham Number80.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 12.16% | ||
| ROCE | 10.66% | ||
| ROIC | 7.93% | ||
| ROICexc | 7.95% | ||
| ROICexgc | 9.64% | ||
| OM | 24.97% | ||
| PM (TTM) | 15.62% | ||
| GM | 47.37% | ||
| FCFM | 6.3% |
ROA(3y)8.26%
ROA(5y)7.68%
ROE(3y)17.88%
ROE(5y)16.17%
ROIC(3y)7.67%
ROIC(5y)7.89%
ROICexc(3y)7.68%
ROICexc(5y)7.89%
ROICexgc(3y)9.14%
ROICexgc(5y)9.05%
ROCE(3y)10.32%
ROCE(5y)10.61%
ROICexgc growth 3Y7.29%
ROICexgc 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-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 9.4 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 143.75% | ||
| Cap/Sales | 16.42% | ||
| Interest Coverage | 7.08 | ||
| Cash Conversion | 62.42% | ||
| Profit Quality | 40.35% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 2.69 |
F-Score5
WACC9.85%
ROIC/WACC0.8
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)29.89%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%-8.02%
EPS Next Y28.13%
EPS Next 2Y17.97%
EPS Next 3Y15.65%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%-3.87%
Revenue Next Year3.03%
Revenue Next 2Y3.66%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
EBIT growth 1Y13%
EBIT growth 3Y20.47%
EBIT growth 5Y10.69%
EBIT Next Year55.55%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y181.38%
FCF growth 3Y23.21%
FCF growth 5Y77.11%
OCF growth 1Y17.52%
OCF growth 3Y24.14%
OCF growth 5Y14.77%
MCGRATH RENTCORP / MGRC FAQ
What is the ChartMill fundamental rating of MCGRATH RENTCORP (MGRC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MGRC.
What is the valuation status of MCGRATH RENTCORP (MGRC) stock?
ChartMill assigns a valuation rating of 6 / 10 to MCGRATH RENTCORP (MGRC). This can be considered as Fairly Valued.
What is the profitability of MGRC stock?
MCGRATH RENTCORP (MGRC) has a profitability rating of 8 / 10.
What is the valuation of MCGRATH RENTCORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCGRATH RENTCORP (MGRC) is 17.64 and the Price/Book (PB) ratio is 2.14.
What is the earnings growth outlook for MCGRATH RENTCORP?
The Earnings per Share (EPS) of MCGRATH RENTCORP (MGRC) is expected to grow by 28.13% in the next year.