McGrath RentCorp
Rank #382Capital ReturnMGRC · Nasdaq · Industrials
McGrath RentCorp (MGRC) — Rank #382 by gross profitability (GP/assets 0.18) · ROE 12.6% · Piotroski F-Score N/A.
As-of 2026-09-15 · 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.
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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
Price History
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
$2.68B
P/E (annual)
17.3
P/S (annual)
2.8
P/B
2.1
P/OCF (annual)
10.5
Shareholder Yield
1.5%
Employees
1,306
Industry
Rental & Leasing Services
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholds2 of 5 thresholds not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
1.6%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 0.3% — per-share value needs a total required return of 1.8% once share-count change is priced in.
vs. own 6-year median revenue growth: 8.6%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
-2.4%
r = 10% (base)
1.6%
r = 12%
5.0%
Net debt / market cap: -0.2%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.18
Primary signal (Novy-Marx).
6th pctl of 98 SIC 73 peers
Return on equity
12.6%
Gross margin
48.2%
31st pctl of 97 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%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.01
38th pctl of 87 SIC 73 peers (best = lowest)
Current ratio
—
Quick ratio
—
Net cash
$4.38M
Cash & equivalents minus total debt.
Recession resistance
Revenue through recessions
Worst single-year YoY revenue decline, 17 years of history
Cash-flow health
Free cash flow
$211.30M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.35
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
1.2%
Stock-based comp intensity.
Dividend safety
Composite score
3.5 / 5
Piotroski F-Score
F-Score
N/A
Only 7/9 components determinable.