MGRC · Nasdaq · Industrials
McGrath RentCorp (MGRC) — Rank #368 by gross profitability (GP/assets 0.18) · ROE 12.2% · Piotroski F-Score N/A.
As-of 2026-10-30 · CIK 0000752714 · all metrics point-in-time as of the filing date.
About
McGrath RentCorp operates as a business-to-business rental company in the United States and internationally.
Show moreShow less
The company also engages in renting and selling relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex. The Mobile Modular segment rents and sells modular buildings designed for use as classrooms, temporary offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, childcare facilities, office spaces, and various other purposes. The Portable Storage segment offers steel containers, such as storage and office containers, to provide temporary storage solutions to construction, retail, commercial and industrial, energy and petrochemical, manufacturing, education, and healthcare markets. The TRS-RenTelco segment rents and sells general purpose electronic test equipment, such as oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment primarily for the aerospace, defense, electronics, industrial, research, and semiconductor industries. This segment also provides communications test equipment, including network and transmission test equipment for various fiber, copper, and wireless networks to the manufacturers of communications equipment and products, electrical and communications installation contractors, field technicians, and service providers. The Enviroplex segment manufactures and sells portable classrooms directly to public school districts and other educational institutions in California.
The company was incorporated in 1979 and is based in Livermore, California.
- Industry
- Rental & Leasing Services
- Sector
- Industrials
- State
- CA
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- mgrc.com
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
1,306
Industry
Rental & Leasing Services
Exchange
Nasdaq
9/11
Flags passed
MGRC fails 2 critical flags
Passes 9 of 11 quality flags
- FAILOperating margin declining
Operating margin lower than prior year
- FAILValuation convergence
EPS declining, shares diluting, and revenue growth decelerating simultaneously
- PASSGross margin holding
- PASSDilution within 2%
- PASSFCF not negative from investment
- PASSDisclosure consistent
- PASSRevenue not declining
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSNo competitive retreat
- PASSSBC not compressing margin
Strengths Deferred revenue growing · Sequential beat (rev + EPS)
No data Balance sheet — not counted as a pass.
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passFCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Does it make money well?
Warning: Operating margin declining · GP/assets 4th percentile of 96 SIC 73 peers
Gross profitability (GP / assets)
0.18
Primary signal (Novy-Marx).
4th pctl of 96 SIC 73 peers
Return on equity
12.2%
Gross margin
48.2%
31st pctl of 95 SIC 73 peers
Revenue growth (YoY)
3.7%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
14.1%
Revenue CAGR (5Y)
10.5%
Earnings CAGR (3Y)
10.7%
FCF CAGR (3Y)
6.1%
Cash Flow Health
Is the cash real?
No warning flags · FCF 35% above net income
Free cash flow
$211.30M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
35.2%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
1.2%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
No warning flags · net cash $1.04M
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.02
37th pctl of 87 SIC 73 peers (best = lowest)
Current ratio
—
Quick ratio
—
Net cash
$1.04M
Cash & equivalents minus total debt.
Piotroski F-Score
N/A
Only 7/9 components determinable.
Valuation
Is the price reasonable?
Warning: Valuation convergence
Dividend safety
Composite score
3.5 / 5
Capital allocation quality
Composite score
3.0 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports