McGrath RentCorp
NASDAQ:MGRC

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McGrath RentCorp
NASDAQ:MGRC
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Price: 119.85 USD 0.33%
Market Cap: 2.9B USD
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Intrinsic Value

The intrinsic value of one MGRC stock under the Base Case scenario is 79.78 USD. Compared to the current market price of 119.85 USD, McGrath RentCorp is Overvalued by 33%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

MGRC Intrinsic Value
79.78 USD
Overvaluation 33%
Intrinsic Value
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McGrath RentCorp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
McGrath RentCorp

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
McGrath RentCorp

Current Assets 318.2m
Cash & Short-Term Investments 4.1m
Receivables 224.5m
Other Current Assets 89.7m
Non-Current Assets 2B
PP&E 1.6B
Intangibles 380.1m
Current Liabilities 185.6m
Accounts Payable 76.2m
Accrued Liabilities 109.4m
Non-Current Liabilities 1B
Long-Term Debt 608.6m
Other Non-Current Liabilities 397.4m
Efficiency

Earnings Waterfall
McGrath RentCorp

Revenue
888.8m USD
Cost of Revenue
-458m USD
Gross Profit
430.8m USD
Operating Expenses
-225m USD
Operating Income
205.8m USD
Other Expenses
19m USD
Net Income
224.8m USD

Free Cash Flow Analysis
McGrath RentCorp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3 2024, McGrath RentCorp reported a 10% revenue increase to $267 million and a 13% rise in adjusted EBITDA to $104 million. The Mobile Modular division surged, with rental revenues up 9% and sales revenues up 14%. However, the Portable Storage and TRS-Rentelco segments faced declines due to market softness, resulting in adjustments to capital spending. Looking ahead, McGrath expects 2024 revenues between $910 million and $920 million and adjusted EBITDA between $345 million and $351 million, indicating cautious optimism about improving demand as interest rates stabilize.

What is Earnings Call?
Fundamental Scores

MGRC Profitability Score
Profitability Due Diligence

McGrath RentCorp's profitability score is 57/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive 3-Years Revenue Growth
Positive Operating Income
Positive 3-Year Average ROE
57/100
Profitability
Score

McGrath RentCorp's profitability score is 57/100. The higher the profitability score, the more profitable the company is.

MGRC Solvency Score
Solvency Due Diligence

McGrath RentCorp's solvency score is 43/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
43/100
Solvency
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McGrath RentCorp's solvency score is 43/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

MGRC Price Targets Summary
McGrath RentCorp

Wall Street analysts forecast MGRC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for MGRC is 130.05 USD with a low forecast of 125.24 USD and a high forecast of 137.55 USD.

Lowest
Price Target
125.24 USD
4% Upside
Average
Price Target
130.05 USD
9% Upside
Highest
Price Target
137.55 USD
15% Upside
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Dividends

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Shareholder Yield

Current shareholder yield for MGRC is .

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Ownership

MGRC Insider Trading
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Profile

McGrath RentCorp Logo
McGrath RentCorp

Country

United States of America

Industry

Trading Companies & Distributors

Market Cap

2.9B USD

Dividend Yield

1.58%

Description

McGrath RentCorp engages in the provision of business-to-business rental services. The company is headquartered in Livermore, California and currently employs 1,184 full-time employees. The firm operates through rental divisions, such as relocatable modular buildings, portable storage containers, electronic test equipment, and liquid and solid containment tanks and boxes. The Company’s segments include its modular building and portable storage segment (Mobile Modular); its electronic test equipment segment (TRS-RenTelco); its containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks), and its classroom manufacturing business selling modular buildings used primarily as classrooms in California (Enviroplex). The Mobile Modular segment includes the results of operations of mobile modular portable storage and kitchens. Its TRS-RenTelco rents and sells electronic test equipment nationally and internationally from two facilities located on the grounds of the Dallas Fort Worth International Airport in Grapevine, Texas and Dollard-des-Ormeaux, Canada.

Contact

CALIFORNIA
Livermore
5700 Las Positas Rd
+19256069200.0
www.mgrc.com

IPO

1984-11-13

Employees

1 184

Officers

President, CEO & Director
Mr. Joseph F. Hanna
Executive VP, CFO & Assistant Corporate Secretary
Mr. Keith E. Pratt
VP, General Counsel & Corporate Secretary
Ms. Gilda Malek J.D.
Senior VP & Division Manager of Mobile Modular
Mr. Philip B. Hawkins
Senior VP & Chief Strategy Officer
Ms. Kristina Van Trease-Whitney
VP, Corporate Controller & Principal Accounting Officer
Mr. David M. Whitney CPA
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Vice President of Human Resources
Ms. Tara Wescott
VP & Division Manager of TRS-RenTelco
Mr. John P. Skenesky
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See Also

Discover More
What is the Intrinsic Value of one MGRC stock?

The intrinsic value of one MGRC stock under the Base Case scenario is 79.78 USD.

Is MGRC stock undervalued or overvalued?

Compared to the current market price of 119.85 USD, McGrath RentCorp is Overvalued by 33%.

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