McGrath RentCorp MGRC

IndustrialsProfessional & Commercial ServicesUnited States of America

Last close 118.28 USD on Nov 1, 2026, +14.7% year to date

Quant rating

Quant rating C Rank 228 of 486 in Industrials

Growth C 246 of 486
Valuation B 167 of 486
Quality B 163 of 486
Revisions D 351 of 486
Momentum B 180 of 486

Wall Street consensus Buy (1.75)Average target 146.26 USD +23.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 2.9B
Enterprise value: 3.5B
52-week range: 94.99 – 125.50
3-year range: 94.99 – 130.11
Dividend yield: 1.67%
Beta (5 years): 0.48
Shares outstanding: 24.4M
Next earnings: Feb 22, 2027

About the company

McGrath RentCorp is a business-to-business rental company in North America. The Company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. Mobile Modular segment provides modular buildings in the United States. It provides prefabricated customizable modular buildings, mobile office trailers, portable classrooms, portable sales office buildings, prefab restrooms and more for rent, lease and sale. Portable Storage segment’s rental inventory is comprised of steel containers, which are used to provide a temporary storage solution that is delivered to the customer’s location. TRS-RenTelco segment rents and sells general purpose and communications test equipment. TRS-RenTelco segment’s general purpose test equipment rental inventory includes oscilloscopes, amplifiers, analyzers (spectrum, network and logic), signal source and power source test equipment. Enviroplex segment manufactures modular buildings used primarily as classrooms in California.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	944	911	832	636	535	–
Revenue growth	3.7%	9.5%	30.9%	18.9%	−6.6%	10.5%
EPS (basic, normalized)	6.35	9.43	4.56	4.70	3.66	–
EPS growth	−32.7%	106.8%	−3.0%	28.4%	–	–
Gross margin	48.2%	47.8%	47.3%	45.7%	46.3%	47.0%
Net margin	16.6%	25.4%	13.4%	16.3%	15.9%	17.5%
ROE	13.2%	22.5%	12.9%	13.5%	12.0%	14.8%

Balance sheet, last quarter
Cash & short-term investments (mil)	1.0
Current ratio	–
Long-term debt (mil)	618
Net debt (mil)	617
Total equity (mil)	1,278
Net debt / equity	0.48x
Net debt / EBITDA	1.70x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	944	+3.7%	3.7x	362	+4.1%	9.7x	6.35	−32.7%	18.6x
2026	954	+1.0%	3.7x	369	+1.9%	9.5x	6.46	+1.7%	18.3x
2027	1,003	+5.1%	3.5x	393	+6.4%	8.9x	6.84	+5.9%	17.3x
2028	1,038	+3.5%	3.4x	413	+5.0%	8.5x	7.22	+5.7%	16.4x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	954	−1.2%	−1.2%	−1.4%	6.46	0.0%	0.0%	−0.1%
2027	1,003	−1.0%	−1.0%	−0.9%	6.84	−1.1%	−1.1%	−2.5%
2028	1,038	−4.9%	−4.9%	−4.4%	7.22	−4.9%	−4.9%	−6.4%

Earnings surprises EPS beat in 1 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	188	213	267	244	195	236	256	257	199	221
Sales mean (mil)	172	210	228	247	190	221	267	254	198	237
Surprise	+9.2%	+1.1%	+17.1%	−1.3%	+3.1%	+6.8%	−3.8%	+1.0%	+0.2%	−6.5%
EPS reported	0.54	0.84	1.87	1.58	1.15	1.46	1.72	2.02	1.10	1.37
EPS mean	0.73	1.25	3.83	1.49	0.96	1.21	1.85	1.71	1.11	1.50
Surprise	−26.0%	−32.8%	−51.1%	+6.3%	+20.2%	+20.9%	−7.2%	+18.0%	−1.1%	−8.9%

Peer comparison Professional & Commercial Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
MGRC McGrath RentCorp	2.9B	1.70x	16.6%	2.28x	18.3x	17.3x	9.5x	8.9x
CTAS Cintas Corporation	87.3B	0.70x	17.7%	16.87x	39.7x	35.6x	26.2x	24.0x
URI United Rentals, Inc.	72.4B	1.98x	15.5%	7.48x	22.5x	19.1x	10.5x	9.4x
WLFC Willis Lease Finance Corporation	880M	–	14.8%	1.23x	6.7x	6.9x	7.0x	6.7x
TRNS Transcat, Inc.	808M	2.13x	1.6%	2.67x	47.5x	41.4x	16.7x	14.9x
ZDC Zedcor Inc	412M	2.90x	4.6%	5.99x	−1,514.6x	72.1x	17.5x	10.5x
Mean		1.88x	11.8%	6.09x	−230.0x	32.0x	14.6x	12.4x
Median		1.98x	15.1%	4.33x	20.4x	27.3x	13.6x	9.9x

Technical analysis

1M+3.4%
3M−1.0%
1Y+6.5%
3Y+22.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, McGrath RentCorp, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	944	911	832	636	535	573
Cost of revenue	489	476	438	345	287	309
Gross profit	455	435	394	290	247	264
Selling, general & administrative expenses	211	200	208	143	123	123
Research & development	–	–	–	–	–	–
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	0	−126	−3.6	–	–	–
Other operating expenses	0	0	0	0	0	0
Operating income	244	361	190	147	124	141
Net interest income (expense)	−30.5	−47.5	−40.2	−12.6	−8.5	−8.7
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	213	314	149	135	116	132
Provision for taxes	56.8	81.9	37.6	31.4	30.7	30.1
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	156	232	112	103	85.1	102
Extraordinary items	0	0	62.8	11.8	4.6	–
Net income	156	232	175	115	89.7	102
EBIT, normalized	200	200	170	113	101	141
EBITDA, normalized	307	307	280	225	208	235
Basic EPS, normalized	6.35	9.43	4.56	4.70	3.66	–

Balance sheet in millions of USD, fiscal years

Balance sheet, McGrath RentCorp, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	0.3	0.8	0.9	1.0	1.5	1.2
Receivables	232	219	227	190	159	123
Total inventory	8.0	14.3	–	–	–	–
Prepaid expenses	–	–	–	–	–	–
Other current assets	–	–	–	–	–	–
Total current assets	–	–	–	–	–	–
Property, plant & equipment	1,654	1,585	1,498	1,272	1,201	1,074
Goodwill	333	323	323	132	132	28.2
Intangibles	46.6	54.3	64.6	41.1	47.0	7.1
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	324	315	331	262	216	166
Total assets	2,357	2,278	2,217	1,708	1,596	1,276
Liabilities
Accounts payable	66.2	60.1	–	–	–	–
Payable/accrued	–	–	168	161	136	108
Accrued expenses	115	114	–	–	–	–
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	–	0	0	0	60.0	40.0
Other current liabilities	–	–	–	–	–	–
Total current liabilities	–	–	–	–	–	–
Long-term debt	515	590	763	414	366	183
Minority interest	–	–	–	–	–	–
Other liabilities	605	564	521	490	497	410
Total liabilities	1,120	1,154	1,283	904	864	593
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	122	116	111	110	109	106
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	1,115	1,007	823	694	623	576
Treasury stock	–	–	–	–	–	–
Other equity	0	0	−0.1	−0.1	−0.1	−0.1
Total equity	1,237	1,123	934	804	732	683
Total liabilities & shareholders' equity	2,357	2,278	2,217	1,708	1,596	1,276

Cash flow statement in millions of USD, fiscal years

Cash flow statement, McGrath RentCorp, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	156	232	175	115	89.7	102
Depreciation, depletion & amortization	107	107	109	111	107	94.6
Deferred taxes	33.5	38.6	−17.0	4.5	26.3	−2.2
Non-cash items	−31.1	−32.7	−86.2	−28.7	−17.1	−12.5
Changes in working capital	−10.0	29.3	−85.5	−7.8	−9.9	−1.4
Cash from operations	256	374	95.3	194	196	181
Investing activities
Capital expenditures	−187	−231	−274	−205	−119	−100
Other investing cash flows	59.8	80.7	−118	73.9	−232	47.1
Cash from investing	−127	−151	−392	−131	−352	−53.0
Financing activities
Financing cash flow items	−5.7	−4.4	−7.2	−6.5	−5.3	−4.4
Cash dividends paid	−47.9	−46.8	−45.6	−44.3	−42.2	−39.8
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−75.5	−173	349	−12.7	204	−84.3
Cash from financing	−129	−224	296	−63.5	156	−128
Foreign exchange effects	0	0	0	0	0	−0.2
Net change in cash	−0.5	−0.1	−0.1	−0.5	0.3	−1.1
Free cash flow	68.7	143	−178	−10.9	76.4	80.5

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.