107.65 USD
-0.62 (-0.57%)
107.65 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 has a great profitability rating, there are some minor concerns on its financial health. MGRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MGRC was profitable.
In the past year MGRC had a positive cash flow from operations.
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
With a decent Return On Assets value of 6.19%, MGRC is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Return On Equity of MGRC (12.16%) is comparable to the rest of the industry.
The Return On Invested Capital of MGRC (7.93%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MGRC is in line with the industry average of 9.63%.
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
MGRC's Profit Margin of 15.62% is amongst the best of the industry. MGRC outperforms 84.00% of its industry peers.
MGRC's Profit Margin has improved in the last couple of years.
MGRC's Operating Margin of 24.97% is amongst the best of the industry. MGRC outperforms 84.00% of its industry peers.
MGRC's Operating Margin has been stable in the last couple of years.
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.
MGRC's Gross Margin has been stable in the last couple of years.
| 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.
MGRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that MGRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGRC has a Altman-Z score of 2.80. This is comparable to the rest of the industry: MGRC outperforms 46.00% of its industry peers.
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.
MGRC has a Debt to FCF ratio of 9.40. This is comparable to the rest of the industry: MGRC outperforms 58.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that MGRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, MGRC is in line with its industry, outperforming 54.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 9.4 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.82
WACC9.72%
2.3 Liquidity
MGRC has a Current Ratio of 1.55. 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 (1.55) is comparable to the rest of the industry.
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.
The Earnings Per Share has been growing slightly by 4.21% on average over the past years.
MGRC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
The Revenue has been growing by 9.82% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.65% on average over the next years. This is quite good.
Based on estimates for the next years, MGRC will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
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
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
Based on the Price/Earnings ratio of 18.21, the valuation of MGRC can be described as rather expensive.
Based on the Price/Earnings ratio, MGRC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
MGRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 15.99, MGRC is valued correctly.
Based on the Price/Forward Earnings ratio, MGRC is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
MGRC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
MGRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGRC is cheaper than 74.00% of the companies in the same industry.
MGRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.15 | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MGRC 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)0.65
PEG (5Y)4.33
EPS Next 2Y18.06%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
MGRC has a Yearly Dividend Yield of 1.80%.
MGRC's Dividend Yield is rather good when compared to the industry average which is at 0.98. MGRC pays more dividend than 84.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, MGRC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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.
The dividend of MGRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.75%
EPS Next 2Y18.06%
EPS Next 3Y15.65%
107.65
-0.62 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.27%
Inst Owner Change0.07%
Ins Owners1.27%
Ins Owner Change-3.39%
Market Cap2.65B
Revenue(TTM)931.22M
Net Income(TTM)145.43M
Analysts85
Price Target149.94 (39.28%)
Short Float %1.29%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend1.91
Dividend Growth(5Y)5.43%
DP32.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.78%
Min EPS beat(2)-8.97%
Max EPS beat(2)18.54%
EPS beat(4)3
Avg EPS beat(4)7.9%
Min EPS beat(4)-8.97%
Max EPS beat(4)18.54%
EPS beat(8)3
Avg EPS beat(8)-11.09%
EPS beat(12)6
Avg EPS beat(12)-7.39%
EPS beat(16)9
Avg EPS beat(16)-3.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-5.7%
Max Revenue beat(2)4.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-5.7%
Max Revenue beat(4)4.66%
Revenue beat(8)5
Avg Revenue beat(8)2.39%
Revenue beat(12)9
Avg Revenue beat(12)3.06%
Revenue beat(16)9
Avg Revenue beat(16)0.01%
PT rev (1m)0.17%
PT rev (3m)2.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 15.99 | ||
| P/S | 2.84 | ||
| P/FCF | 45.15 | ||
| P/OCF | 12.52 | ||
| P/B | 2.21 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)5.91
EY5.49%
EPS(NY)6.73
Fwd EY6.25%
FCF(TTM)2.38
FCFY2.21%
OCF(TTM)8.6
OCFY7.99%
SpS37.84
BVpS48.61
TBVpS33.1
PEG (NY)0.65
PEG (5Y)4.33
Graham Number80.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 12.16% | ||
| ROCE | 10.66% | ||
| ROIC | 7.93% | ||
| ROICexc | 7.95% | ||
| ROICexgc | 9.64% | ||
| OM | 24.97% | ||
| PM (TTM) | 15.62% | ||
| GM | 47.37% | ||
| FCFM | 6.3% |
ROA(3y)8.26%
ROA(5y)7.68%
ROE(3y)17.88%
ROE(5y)16.17%
ROIC(3y)7.67%
ROIC(5y)7.89%
ROICexc(3y)7.68%
ROICexc(5y)7.89%
ROICexgc(3y)9.14%
ROICexgc(5y)9.05%
ROCE(3y)10.32%
ROCE(5y)10.61%
ROICexgc growth 3Y7.29%
ROICexgc growth 5Y2.3%
ROICexc growth 3Y5.15%
ROICexc growth 5Y-1.08%
OM growth 3Y5.79%
OM growth 5Y0.79%
PM growth 3Y20.49%
PM growth 5Y8.42%
GM growth 3Y1.61%
GM growth 5Y0.47%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 9.4 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 143.75% | ||
| Cap/Sales | 16.42% | ||
| Interest Coverage | 7.08 | ||
| Cash Conversion | 62.42% | ||
| Profit Quality | 40.35% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 2.8 |
F-Score5
WACC9.72%
ROIC/WACC0.82
Cap/Depr(3y)216.69%
Cap/Depr(5y)173.54%
Cap/Sales(3y)28.76%
Cap/Sales(5y)24.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.89%
EPS 3Y8.9%
EPS 5Y4.21%
EPS Q2Q%-8.02%
EPS Next Y28.13%
EPS Next 2Y18.06%
EPS Next 3Y15.65%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y13.88%
Revenue growth 5Y9.82%
Sales Q2Q%-3.87%
Revenue Next Year3.03%
Revenue Next 2Y3.66%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
EBIT growth 1Y13%
EBIT growth 3Y20.47%
EBIT growth 5Y10.69%
EBIT Next Year56.11%
EBIT Next 3Y20.75%
EBIT Next 5YN/A
FCF growth 1Y181.38%
FCF growth 3Y23.21%
FCF growth 5Y77.11%
OCF growth 1Y17.52%
OCF growth 3Y24.14%
OCF growth 5Y14.77%
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.
What is the valuation status of MCGRATH RENTCORP (MGRC) stock?
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 valuation of MCGRATH RENTCORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCGRATH RENTCORP (MGRC) is 18.21 and the Price/Book (PB) ratio is 2.21.
What is the earnings growth outlook for MCGRATH RENTCORP?
The Earnings per Share (EPS) of MCGRATH RENTCORP (MGRC) is expected to grow by 28.13% in the next year.