MCGRATH RENTCORP (MGRC)
US5805891091 - Common Stock
Taking everything into account, MGRC scores 5 out of 10 in our fundamental rating. MGRC was compared to 48 industry peers in the Trading Companies & Distributors industry. MGRC has an excellent profitability rating, but there are concerns on its financial health. MGRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MGRC had positive earnings in the past year.
MGRC had a positive operating cash flow in the past year.
In the past 5 years MGRC has always been profitable.
Each year in the past 5 years MGRC had a positive operating cash flow.
1.2 Ratios
MGRC has a better Return On Assets (9.84%) than 79.17% of its industry peers.
Looking at the Return On Equity, with a value of 20.55%, MGRC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Invested Capital of MGRC (7.43%) is comparable to the rest of the industry.
MGRC had an Average Return On Invested Capital over the past 3 years of 7.42%. This is below the industry average of 9.74%.
The 3 year average ROIC (7.42%) for MGRC is below the current ROIC(7.43%), indicating increased profibility in the last year.
| 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 Profit Margin of 25.29%. This is amongst the best in the industry. MGRC outperforms 97.92% of its industry peers.
MGRC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.15%, MGRC belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
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 48.47%, MGRC belongs to the best of the industry, outperforming 81.25% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGRC is destroying value.
MGRC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGRC has more shares outstanding
Compared to 1 year ago, MGRC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 indicates that MGRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGRC has a Altman-Z score (2.74) which is comparable to the rest of the industry.
MGRC has a debt to FCF ratio of 24.51. This is a negative value and a sign of low solvency as MGRC would need 24.51 years to pay back of all of its debts.
With a Debt to FCF ratio value of 24.51, MGRC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that 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 | 2.74 |
ROIC/WACC0.65
WACC11.49%
2.3 Liquidity
A Current Ratio of 1.71 indicates that MGRC should not have too much problems paying its short term obligations.
MGRC's Current ratio of 1.71 is on the low side compared to the rest of the industry. MGRC is outperformed by 60.42% of its industry peers.
A Quick Ratio of 1.59 indicates that MGRC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.59, MGRC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
MGRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.60%.
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
MGRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.32% yearly.
Based on estimates for the next years, MGRC will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y23.44%
EPS Next 2Y17.99%
EPS Next 3Y16.32%
EPS Next 5YN/A
Revenue Next Year10.85%
Revenue Next 2Y5.54%
Revenue Next 3Y5.59%
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 rather expensively with a Price/Earnings ratio of 24.76.
MGRC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. MGRC is around the same levels.
The Price/Forward Earnings ratio is 18.39, which indicates a rather expensive current valuation of MGRC.
MGRC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. MGRC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 18.39 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.37 | ||
| EV/EBITDA | 10.67 |
4.3 Compensation for Growth
MGRC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 16.32% in the coming years.
PEG (NY)1.06
PEG (5Y)3.92
EPS Next 2Y17.99%
EPS Next 3Y16.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, MGRC has a reasonable but not impressive dividend return.
MGRC's Dividend Yield is a higher than the industry average which is at 1.86.
MGRC's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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.
The dividend of MGRC decreased recently.
Dividend Growth(5Y)7.81%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
20.66% of the earnings are spent on dividend by MGRC. This is a low number and sustainable payout ratio.
The dividend of MGRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.66%
EPS Next 2Y17.99%
EPS Next 3Y16.32%
MCGRATH RENTCORP
NASDAQ:MGRC (12/20/2024, 8:24:22 PM)
After market: 112.647 0 (0%)112.65
+0.67 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners83.19%
Inst Owner Change-3.41%
Ins Owners2.95%
Ins Owner Change-8.22%
Market Cap2.77B
Analysts85.71
Price Target137.7 (22.24%)
Short Float %2.5%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)7.81%
DP20.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-43.09%
Min EPS beat(2)-52.07%
Max EPS beat(2)-34.12%
EPS beat(4)0
Avg EPS beat(4)-30.07%
Min EPS beat(4)-52.07%
Max EPS beat(4)-6.63%
EPS beat(8)3
Avg EPS beat(8)-15.03%
EPS beat(12)6
Avg EPS beat(12)-7.85%
EPS beat(16)7
Avg EPS beat(16)-6.83%
Revenue beat(2)1
Avg Revenue beat(2)6.99%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)14.83%
Revenue beat(4)3
Avg Revenue beat(4)5.58%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)14.83%
Revenue beat(8)7
Avg Revenue beat(8)4.99%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.08%
PT rev (1m)7.57%
PT rev (3m)9.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.91%
EPS NY rev (1m)0%
EPS NY rev (3m)18.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 18.39 | ||
| P/S | 3.11 | ||
| P/FCF | 111.37 | ||
| P/OCF | 8.81 | ||
| P/B | 2.53 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 10.67 |
EPS(TTM)4.55
EY4.04%
EPS(NY)6.13
Fwd EY5.44%
FCF(TTM)1.01
FCFY0.9%
OCF(TTM)12.79
OCFY11.36%
SpS36.2
BVpS44.56
TBVpS29.08
PEG (NY)1.06
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 20.55% | ||
| ROCE | 9.8% | ||
| ROIC | 7.43% | ||
| ROICexc | 7.44% | ||
| ROICexgc | 9.09% | ||
| OM | 23.15% | ||
| PM (TTM) | 25.29% | ||
| GM | 48.47% | ||
| FCFM | 2.79% |
ROA(3y)6.75%
ROA(5y)7.12%
ROE(3y)15.09%
ROE(5y)15.1%
ROIC(3y)7.42%
ROIC(5y)8.13%
ROICexc(3y)7.43%
ROICexc(5y)8.14%
ROICexgc(3y)8.66%
ROICexgc(5y)9%
ROCE(3y)9.8%
ROCE(5y)10.73%
ROICexcg growth 3Y-4.61%
ROICexcg growth 5Y0.77%
ROICexc growth 3Y-10.1%
ROICexc growth 5Y-2.76%
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%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 24.51 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 266.8% | ||
| Cap/Sales | 32.54% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 99.95% | ||
| Profit Quality | 11.05% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 2.74 |
F-Score8
WACC11.49%
ROIC/WACC0.65
Cap/Depr(3y)182.16%
Cap/Depr(5y)170.64%
Cap/Sales(3y)26.74%
Cap/Sales(5y)25.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.6%
EPS 3Y1.97%
EPS 5Y6.31%
EPS Q2Q%25.5%
EPS Next Y23.44%
EPS Next 2Y17.99%
EPS Next 3Y16.32%
EPS Next 5YN/A
Revenue 1Y (TTM)8.24%
Revenue growth 3Y13.26%
Revenue growth 5Y10.79%
Sales Q2Q%9.55%
Revenue Next Year10.85%
Revenue Next 2Y5.54%
Revenue Next 3Y5.59%
Revenue Next 5YN/A
EBIT growth 1Y10.46%
EBIT growth 3Y9.74%
EBIT growth 5Y9.63%
EBIT Next Year75.21%
EBIT Next 3Y21.12%
EBIT Next 5YN/A
FCF growth 1Y4.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.97%
OCF growth 3Y-19.16%
OCF growth 5Y-7.75%