MCGRATH RENTCORP (MGRC)
US5805891091 - Common Stock
We assign a fundamental rating of 4 out of 10 to MGRC. MGRC was compared to 51 industry peers in the Trading Companies & Distributors industry. MGRC has a medium profitability rating, but doesn't score so well on its financial health evaluation. MGRC is quite expensive at the moment. It does show 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.
In the past 5 years MGRC has always been profitable.
MGRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.88%, MGRC is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
With a Return On Equity value of 18.71%, MGRC perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
MGRC has a worse Return On Invested Capital (6.88%) than 60.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGRC is below the industry average of 11.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 18.71% | ||
| ROIC | 6.88% |
ROA(3y)6.75%
ROA(5y)7.12%
ROE(3y)15.09%
ROE(5y)15.1%
ROIC(3y)7.42%
ROIC(5y)8.13%
1.3 Margins
MGRC has a better Profit Margin (21.00%) than 96.08% of its industry peers.
MGRC's Profit Margin has improved in the last couple of years.
The Operating Margin of MGRC (22.38%) is better than 78.43% of its industry peers.
In the last couple of years the Operating Margin of MGRC has remained more or less at the same level.
MGRC's Gross Margin of 47.32% is amongst the best of the industry. MGRC outperforms 80.39% of its industry peers.
MGRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 21% | ||
| GM | 47.32% |
OM growth 3Y-3.1%
OM growth 5Y-1.05%
PM growth 3Y5.63%
PM growth 5Y5.67%
GM growth 3Y0.91%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
MGRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MGRC has more shares outstanding
Compared to 5 years ago, MGRC has more shares outstanding
The debt/assets ratio for MGRC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.51 indicates that MGRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MGRC (2.51) is comparable to the rest of the industry.
MGRC has a Debt/Equity ratio of 0.82. This is a neutral value indicating MGRC is somewhat dependend on debt financing.
The Debt to Equity ratio of MGRC (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.51 |
ROIC/WACC0.75
WACC9.19%
2.3 Liquidity
MGRC has a Current Ratio of 1.98. 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 Current ratio (1.98) which is comparable to the rest of the industry.
MGRC has a Quick Ratio of 1.98. This is a normal value and indicates that MGRC is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.98, MGRC belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for MGRC have decreased by -6.58% in the last year.
The Earnings Per Share has been growing slightly by 6.31% on average over the past years.
The Revenue has grown by 25.33% in the past year. This is a very strong growth!
Measured over the past years, MGRC shows a quite strong growth in Revenue. The Revenue has been growing by 10.79% on average per year.
EPS 1Y (TTM)-6.58%
EPS 3Y1.97%
EPS 5Y6.31%
EPS growth Q2Q-19.75%
Revenue 1Y (TTM)25.33%
Revenue growth 3Y13.26%
Revenue growth 5Y10.79%
Revenue growth Q2Q5.07%
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 19.26% yearly.
MGRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y25.65%
EPS Next 2Y19.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.08%
Revenue Next 2Y4.95%
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.
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
A Price/Earnings ratio of 25.39 indicates a quite expensive valuation of MGRC.
Based on the Price/Earnings ratio, MGRC is valued a bit more expensive than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, MGRC is valued at the same level.
The Price/Forward Earnings ratio is 20.21, which indicates a rather expensive current valuation of MGRC.
MGRC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MGRC is more expensive than 60.78% of the companies in the same industry.
MGRC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.64 |
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 a very decent 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 19.26% in the coming years.
PEG (NY)0.99
PEG (5Y)4.02
EPS Next 2Y19.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, 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 1.71. MGRC pays more dividend than 84.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, MGRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of MGRC grows each year by 7.81%, which is quite nice.
MGRC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.07% 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.
DP26.07%
EPS Next 2Y19.26%
EPS Next 3YN/A
MCGRATH RENTCORP
NASDAQ:MGRC (4/26/2024, 7:03:31 PM)
After market: 111.71 0 (0%)111.71
+2.41 (+2.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 20.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.99
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 18.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.38% | ||
| PM (TTM) | 21% | ||
| GM | 47.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.58%
EPS 3Y1.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.33%
Revenue growth 3Y13.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y