Full text
Earnings transcript
Read the complete earnings call transcript.
MGRC
McGrath RentCorp
$125.7
-1.78
(-1.4%)
| Exchange: | NASDAQ |
| Market Cap: | 3.063B |
| Shares Outstanding: | 24.602M |
Delayed data
About The Company
| Sector: | IndustrialsView sector performance | |||||
| Industry: | Rental & Leasing ServicesView industry performance | |||||
| CEO: | Philip Hawkins | |||||
| Full Time Employees: | 1306 | |||||
| Address: |
| |||||
| Website: | https://www.mgrc.com |
McGrath RentCorp (MGRC) operates as a diversified business-to-business provider of rental solutions, serving clients across the United States and internationally. Its primary offerings encompass a range of temporary infrastructure and specialized equipment, including versatile modular structures, portable storage units, advanced electronic testing apparatus, and various liquid and solid containment solutions. The company’s operations are divided into four distinct segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. Mobile Modular specializes in the rental and sale of adaptable modular buildings and portable storage containers. These structures cater to diverse applications such as educational facilities, temporary workplaces, sales outposts, construction site offices, healthcare clinics, and more. TRS-RenTelco focuses on providing (renting and selling) advanced electronic test and measurement equipment. This includes general-purpose instruments like oscilloscopes, amplifiers, and analyzers, primarily catering to the aerospace, defense, electronics, industrial, research, and semiconductor sectors. Additionally, it supplies specialized communication test gear for fiber, copper, and wireless networks, serving equipment manufacturers, installation contractors, field technicians, and communication service providers. Adler Tanks offers rental solutions for various containment needs. Its inventory comprises robust fixed-axle steel tanks for liquids such as groundwater, wastewater, hazardous organic compounds, sewage, and chemical mixtures. The segment also supplies vacuum containers for sludges and solids, dewatering boxes designed to separate liquids from sludge and slurry, and roll-off/trash containers for the interim storage and transport of solid waste. Enviroplex stands out by manufacturing and directly selling portable classroom facilities. Its clientele primarily consists of public school districts and other educational bodies within California. Established in 1979, McGrath RentCorp maintains its headquarters in Livermore, California.
Click to read more…
Revenue Segmentation
Revenue by type
MGRC full analysis
Welcome back to MarketSnap. Let's start with Monday's session, because it told us something. The Nasdaq fell more than 1%, technology was the worst sector on the board, down about 2.4% — and yet industrials were up 1.4%, financials and consumer names held up too. That's money leaving AI and going looking for boring. Here's the twist. One of those boring industrials is quietly selling itself as an AI data-centre play. McGrath RentCorp. It rents modular buildings, portable storage and…
Industry Peers
| TICKER | COMPANY | MKT CAP | P/E | FWD P/E | ROIC |
|---|---|---|---|---|---|
| MGRC | McGrath RentCorp | 3.1B | 18.2 | 19.8 | 8.1% |
 WSC | WillScot Holdings Corporation | 3.4B | — | 17.0 | 7.8% |
 EQPT | EquipmentShare.com Inc. | 3.7B | 183 | 25.8 | 3.6% |
 TRTN-PC | Triton International Limited | 2.1B | 5.6 | — | 7.2% |
 CTOS | Custom Truck One Source, Inc. | 2.1B | 81.7 | 66.9 | 6.1% |
 CAR | Avis Budget Group, Inc. | 4.2B | — | 51.6 | 6.7% |
EPS
Historical EPS and analyst estimates in one chart. Log in for the full interactive view and links to detailed estimates.
Earnings Call
AI summary
Key takeaways
Short, structured highlights from the call so you can focus on what matters.
Log in to continue
Log in to read the full transcript and AI-generated earnings summaries.
Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 831,842 | 910,942 | 944,235 |
| Gross Profit | 393,633 | 435,415 | 434,844 |
| EBITDA | 299,397 | 468,345 | 350,772 |
| Operating Income | 189,712 | 244,264 | 244,089 |
| Net Income | 174,621 | 231,727 | 156,308 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 2,217,283 | 2,277,584 | 2,357,117 |
| Total Liabilities | 1,283,481 | 1,154,216 | 1,120,094 |
| Total Stockholders Equity | 933,802 | 1,123,368 | 1,237,023 |
| Total Debt | 762,975 | 590,208 | 514,924 |
| Cash and Cash Equivalents | 877 | 807 | 295 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 95,343 | 374,375 | 255,683 |
| Capital Expenditure | -273,668 | -40,228 | -44,380 |
| Free Cash Flow | -178,325 | 334,147 | 211,303 |
| Net Income | 174,621 | 231,727 | 156,308 |
| Net Change in Cash | -80 | -70 | -512 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2028 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 1,016,513.547 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 1,023,686.452 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 1,020,100 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 404,511.669 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 406,330.052 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 405,420.861 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 178,589.257 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 180,067.237 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 179,328.247 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 191,163.893 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 192,512.818 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 191,838.356 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 7.280 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 7.310 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 7.250 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 2 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 2 | Research Access | Research Access | Research Access | Research Access |
Log in to continue
Log in and subscribe to Full Access to see up to 5 years of analyst estimates.
Login — it's free(* All numbers are in thousands)
Current Key Metrics
Log in to continue
Log in to see all key valuation metrics and ratios for this symbol.
Login — it's freeForward P/E Ratios
Log in to continue
Log in with Full Access for forward P/E high/low estimates and the full multi-year table.
Login — it's freeSWOT Analysis
Strengths (preview)
- Consistent top-line growth and resilient rental operations. Revenue has compounded steadily from $462M (FY2017) to $944M (FY2025), with Q3 2026 total revenues up 7% YoY to $275M and adjusted EBITDA up 10% to $106M. Rental operations—the higher-quality earnings base—grew 6% YoY, led by TRS-RenTelco rental revenues up 26%, offsetting softness in equipment sales.
- Fortress dividend record and low volatility. The company has raised its dividend for over 35 consecutive years, with a current quarterly payout of $0.495/share (TTM yield ~1.67%). Beta of 0.468 is well below the market, and the stock has outperformed its industry across every measured horizon (1Y: +18.60% vs. industry +5.51%; 5Y: +74.14% vs. +22.42%).
- Conservative balance sheet and strong cash conversion. Debt-to-equity of 0.48, current ratio of 1.09, and FY2025 free cash flow of $211M (FCF yield ~4.0% TTM) reflect a capital-intensive but well-funded rental model. ROE of 12.75% and gross margin of 47.7% (TTM) indicate durable unit economics.
Log in with Research Access for Weaknesses, Opportunities, Threats, and the complete SWOT.
At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates MGRC intrinsic value between $89.97 – $122.59 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about MGRC valuation
Is McGrath RentCorp (MGRC) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for McGrath RentCorp (MGRC) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is MGRC a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether MGRC trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is MGRC’s P/E ratio?
You can see MGRC’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for MGRC?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is MGRC a good long-term investment?
Whether MGRC fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
MGRC
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
Daily snapshot
-1.4
Trading Metrics:
| Open: | 127.52 | Previous Close: | 127.48 | |
| Day Low: | 125.44 | Day High: | 128.27 | |
| Year Low: | 94.99 | Year High: | 134.61 | |
| Price Avg 50: | 114.96 | Price Avg 200: | 114.39 | |
| Volume: | 278268 | Average Volume: | 167081 |
Log in to continue
Log in for multi-period charts (1W–5Y), period tabs, and the same layout as members.
Login — it's free
