117.4 USD
+3.06 (+2.68%)
117.4 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MGRC. MGRC was compared to 50 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
- MGRC had positive earnings in the past year.
- In the past year MGRC had a positive cash flow from operations.
- MGRC had positive earnings in each of the past 5 years.
- In the past 5 years MGRC always reported a positive cash flow from operatings.
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 68.00% of the companies in the same industry.
- MGRC has a Return On Equity (12.16%) which is comparable to the rest of the industry.
- MGRC has a Return On Invested Capital (7.93%) which is in line with its industry peers.
- MGRC had an Average Return On Invested Capital over the past 3 years of 7.67%. This is in line with the industry average of 9.64%.
- 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 84.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of MGRC has grown nicely.
- MGRC's Operating Margin of 24.97% is amongst the best of the industry. MGRC outperforms 84.00% 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 47.37%, MGRC belongs to the best of the industry, outperforming 90.00% 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 | 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
- 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
- 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
- MGRC has an Altman-Z score of 2.91. 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.
- Looking at the Altman-Z score, with a value of 2.91, MGRC is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 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.
- With a Debt to FCF ratio value of 9.40, MGRC perfoms like the industry average, outperforming 58.00% 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's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. MGRC outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 9.4 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.82
WACC9.72%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that MGRC should not have too much problems paying its short term obligations.
- MGRC's Current ratio of 1.55 is in line compared to the rest of the industry. MGRC outperforms 44.00% of its industry peers.
- A Quick Ratio of 1.47 indicates that MGRC should not have too much problems paying its short term obligations.
- MGRC has a Quick ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.89% 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.
- The Revenue has been growing slightly by 4.77% in the past year.
- 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
- MGRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.65% yearly.
- MGRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.10% yearly.
EPS Next Y28.13%
EPS Next 2Y18.06%
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.
- 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 19.86, MGRC is valued on the expensive side.
- Based on the Price/Earnings ratio, MGRC is valued a bit cheaper than 68.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. MGRC is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.44, the valuation of MGRC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MGRC indicates a somewhat cheap valuation: MGRC is cheaper than 72.00% of the companies listed in the same industry.
- MGRC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 17.44 |
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 76.00% of the companies listed in the same industry.
- MGRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.24 | ||
| EV/EBITDA | 10.13 |
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 15.65% in the coming years.
PEG (NY)0.71
PEG (5Y)4.72
EPS Next 2Y18.06%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.67%, MGRC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.31, MGRC pays a bit more dividend than its industry peers.
- MGRC's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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.
- The dividend of MGRC decreased recently.
Dividend Growth(5Y)5.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- MGRC pays out 32.75% 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.
DP32.75%
EPS Next 2Y18.06%
EPS Next 3Y15.65%
MCGRATH RENTCORP / MGRC FAQ
What is the ChartMill fundamental rating of MCGRATH RENTCORP (MGRC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MGRC.
Can you provide the valuation status for MCGRATH RENTCORP?
ChartMill assigns a valuation rating of 5 / 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 7 / 10.
What is the financial health of MCGRATH RENTCORP (MGRC) stock?
The financial health rating of MCGRATH RENTCORP (MGRC) is 4 / 10.
Can you provide the dividend sustainability for MGRC stock?
The dividend rating of MCGRATH RENTCORP (MGRC) is 5 / 10 and the dividend payout ratio is 32.75%.