MCGRATH RENTCORP (MGRC)
US5805891091 - Common Stock
Taking everything into account, MGRC scores 5 out of 10 in our fundamental rating. MGRC was compared to 52 industry peers in the Trading Companies & Distributors industry. While MGRC belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, MGRC is valued expensive at the moment.
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.
MGRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MGRC (9.84%) is better than 78.85% of its industry peers.
MGRC's Return On Equity of 20.55% is amongst the best of the industry. MGRC outperforms 82.69% of its industry peers.
With a Return On Invested Capital value of 7.43%, MGRC perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
MGRC had an Average Return On Invested Capital over the past 3 years of 7.42%. This is in line with the industry average of 9.33%.
The last Return On Invested Capital (7.43%) for MGRC is above the 3 year average (7.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 20.55% | ||
| ROIC | 7.43% |
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 (25.29%) than 98.08% of its industry peers.
MGRC's Profit Margin has improved in the last couple of years.
MGRC has a Operating Margin of 23.15%. This is amongst the best in the industry. MGRC outperforms 90.38% 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 has a better Gross Margin (48.47%) than 78.85% of its industry peers.
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 | 23.15% | ||
| PM (TTM) | 25.29% | ||
| GM | 48.47% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGRC is destroying value.
MGRC has more shares outstanding than it did 1 year ago.
MGRC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MGRC is higher compared to a year ago.
2.2 Solvency
MGRC has an Altman-Z score of 2.78. 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 (2.78) which is in line with its industry peers.
The Debt to FCF ratio of MGRC is 24.51, which is on the high side as it means it would take MGRC, 24.51 years of fcf income to pay off all of its debts.
MGRC's Debt to FCF ratio of 24.51 is in line compared to the rest of the industry. MGRC outperforms 48.08% of its industry peers.
MGRC has a Debt/Equity ratio of 0.56. This is a neutral value indicating MGRC is somewhat dependend on debt financing.
MGRC has a Debt to Equity ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 24.51 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.74
WACC10.08%
2.3 Liquidity
MGRC has a Current Ratio of 1.71. This is a normal value and indicates that MGRC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MGRC (1.71) is worse than 63.46% of its industry peers.
A Quick Ratio of 1.59 indicates that MGRC should not have too much problems paying its short term obligations.
The Quick ratio of MGRC (1.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The earnings per share for MGRC have decreased by -3.60% in the last year.
Measured over the past 5 years, MGRC shows a small growth in Earnings Per Share. The EPS has been growing by 6.31% on average per year.
MGRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.24%.
MGRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.79% yearly.
EPS 1Y (TTM)-3.6%
EPS 3Y1.97%
EPS 5Y6.31%
EPS Q2Q%25.5%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y13.26%
Revenue growth 5Y10.79%
Sales Q2Q%9.55%
3.2 Future
Based on estimates for the next years, MGRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.03% on average per year.
Based on estimates for the next years, MGRC will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
EPS Next Y23.44%
EPS Next 2Y17.99%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year10.85%
Revenue Next 2Y5.54%
Revenue Next 3Y3.3%
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.
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
MGRC is valuated quite expensively with a Price/Earnings ratio of 25.39.
61.54% of the companies in the same industry are cheaper than MGRC, based on the Price/Earnings ratio.
MGRC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.20.
A Price/Forward Earnings ratio of 18.86 indicates a rather expensive valuation of MGRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGRC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MGRC to the average of the S&P500 Index (23.28), we can say MGRC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 18.86 |
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.
MGRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 114.23 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
MGRC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MGRC has an outstanding 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 13.03% in the coming years.
PEG (NY)1.08
PEG (5Y)4.02
EPS Next 2Y17.99%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, MGRC has a reasonable but not impressive dividend return.
MGRC's Dividend Yield is a higher than the industry average which is at 1.78.
Compared to the average S&P500 Dividend Yield of 2.26, MGRC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of MGRC is nicely growing with an annual growth rate of 7.81%!
MGRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MGRC pays out 20.66% 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.
DP20.66%
EPS Next 2Y17.99%
EPS Next 3Y13.03%
MCGRATH RENTCORP
NASDAQ:MGRC (11/4/2024, 8:23:12 PM)
After market: 115.54 0 (0%)115.54
+0.18 (+0.16%)
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 Cap2.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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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 | 18.86 | ||
| 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)1.08
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 20.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.15% | ||
| PM (TTM) | 25.29% | ||
| GM | 48.47% | ||
| 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.59 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.6%
EPS 3Y1.97%
EPS 5Y
EPS Q2Q%
EPS Next Y23.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.24%
Revenue growth 3Y13.26%
Revenue growth 5Y
Sales 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