McGrath RentCorp (MGRC) 10-Year Financial Performance & Capital Metrics

MGRC • • Industrial / General

IndustrialsRental & LeasingSpecialized Equipment & Modular SolutionsModular Building & Storage Solutions

AboutMcGrath RentCorp operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, electronic test equipment and related accessories, and liquid and solid containment tanks and boxes. The company operates through four segments: Mobile Modular, TRS-RenTelco, Adler Tanks, 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, child care facilities, office spaces, and various other purposes; and portable storage containers. 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 to aerospace, defense, electronics, industrial, research, and semiconductor industries. It 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 Adler Tanks segment rents fixed axle steel tanks for storing groundwater, wastewater, volatile organic liquids, sewage, slurry and bio sludge, oil and water mixtures, and chemicals; vacuum containers for sludge and solid materials; dewatering boxes for the separation of water contained in sludge and slurry; and roll-off and trash boxes for temporary storage and transportation of solid waste. 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 headquartered in Livermore, California.Show more

Revenue $911M +9.5%
EBITDA $352M +17.6%
Net Income $232M +32.7%
EPS (Diluted) 9.43 +32.4%
Gross Margin 47.8% +1.0%
EBITDA Margin 38.61% +7.4%
Operating Margin 26.81% +17.6%
Net Margin 25.44% +21.2%
ROE 22.53% +12.1%
ROIC 10.66% +10.1%
Debt/Equity 0.54 -35.6%
Interest Coverage 5.17 +10.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Dividend Aristocrat: 35 years of consecutive increases
✓Strong 5Y profit CAGR of 19.1%
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 36.7% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 19.2%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y8.36%

5Y9.82%

3Y13.88%

TTM4.77%

Profit (Net Income) CAGR

10Y17.62%

5Y19.07%

3Y37.21%

TTM-35.31%

EPS CAGR

10Y18.34%

5Y19.13%

3Y37.09%

TTM-35.41%

ROCE

10Y Avg9.98%

5Y Avg10.73%

3Y Avg10.63%

Latest11.54%

Peer Comparison

Modular Building & Storage Solutions

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
WSCWillScot Holdings Corporation	4.08B	22.42	149.47	1.31%	9.64%	21.09%	6.43%	3.90
MGRCMcGrath RentCorp	2.74B	111.26	11.80	9.51%	15.62%	12.16%	12.2%	0.54

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	404.54M	424.08M	462.03M	498.33M	570.23M	572.55M	616.83M	635.66M	831.84M	910.94M
Revenue Growth %	-0.01%	0.05%	0.09%	0.08%	0.14%	0%	0.08%	0.03%	0.31%	0.1%
Cost of Goods Sold+	227.64M	239.91M	255.69M	265.08M	304.06M	308.81M	350.62M	376.38M	438.21M	475.53M
COGS % of Revenue	0.56%	0.57%	0.55%	0.53%	0.53%	0.54%	0.57%	0.59%	0.53%	0.52%
Gross Profit+	176.91M	184.17M	206.34M	233.25M	266.17M	263.75M	266.21M	259.29M	393.63M	435.42M
Gross Margin %	0.44%	0.43%	0.45%	0.47%	0.47%	0.46%	0.43%	0.41%	0.47%	0.48%
Gross Profit Growth %	-0.03%	0.04%	0.12%	0.13%	0.14%	-0.01%	0.01%	-0.03%	0.52%	0.11%
Operating Expenses+	99.95M	104.91M	111.61M	115.77M	124.79M	122.99M	133.79M	107.94M	203.92M	191.15M
OpEx % of Revenue	0.25%	0.25%	0.24%	0.23%	0.22%	0.21%	0.22%	0.17%	0.25%	0.21%
Selling, General & Admin	99.95M	104.91M	111.61M	115.77M	124.79M	122.99M	133.79M	107.94M	207.54M	92.98M
SG&A % of Revenue	0.25%	0.25%	0.24%	0.23%	0.22%	0.21%	0.22%	0.17%	0.25%	0.1%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	-3.62M	98.17M
Operating Income+	76.96M	79.26M	94.74M	117.48M	141.37M	140.75M	132.42M	151.35M	189.71M	244.26M
Operating Margin %	0.19%	0.19%	0.21%	0.24%	0.25%	0.25%	0.21%	0.24%	0.23%	0.27%
Operating Income Growth %	-0.1%	0.03%	0.2%	0.24%	0.2%	-0%	-0.06%	0.14%	0.25%	0.29%
EBITDA+	161.24M	160.44M	173.16M	199.46M	230.85M	235.4M	239.12M	262.69M	299.09M	351.72M
EBITDA Margin %	0.4%	0.38%	0.37%	0.4%	0.4%	0.41%	0.39%	0.41%	0.36%	0.39%
EBITDA Growth %	-0.03%	-0%	0.08%	0.15%	0.16%	0.02%	0.02%	0.1%	0.14%	0.18%
D&A (Non-Cash Add-back)	84.28M	81.18M	78.42M	81.97M	89.48M	94.64M	106.69M	111.34M	109.38M	107.45M
EBIT	76.96M	79.26M	95.07M	116.99M	141.37M	140.75M	132.21M	146.92M	190.02M	360.89M
Net Interest Income+	-10.09M	-12.21M	-11.62M	-12.3M	-12.33M	-8.79M	-10.46M	-12.23M	-40.56M	-47.24M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	10.09M	12.21M	11.62M	12.3M	12.33M	8.79M	10.46M	12.23M	40.56M	47.24M
Other Income/Expense	-10.58M	-12.33M	-11.29M	-12.79M	-12.25M	-8.71M	-10.66M	-16.66M	-40.25M	69.39M
Pretax Income+	66.38M	66.93M	83.45M	104.69M	129.13M	132.04M	121.76M	134.69M	149.46M	313.65M
Pretax Margin %	0.16%	0.16%	0.18%	0.21%	0.23%	0.23%	0.2%	0.21%	0.18%	0.34%
Income Tax+	25.91M	28.68M	-70.47M	25.29M	32.32M	30.06M	32.05M	31.38M	37.61M	81.92M
Effective Tax Rate %	0.61%	0.57%	1.84%	0.76%	0.75%	0.77%	0.74%	0.85%	1.17%	0.74%
Net Income+	40.47M	38.25M	153.92M	79.41M	96.81M	101.98M	89.7M	115.14M	174.62M	231.73M
Net Margin %	0.1%	0.09%	0.33%	0.16%	0.17%	0.18%	0.15%	0.18%	0.21%	0.25%
Net Income Growth %	-0.11%	-0.05%	3.02%	-0.48%	0.22%	0.05%	-0.12%	0.28%	0.52%	0.33%
Net Income (Continuing)	40.47M	38.25M	153.92M	79.41M	96.81M	101.98M	89.7M	103.31M	111.85M	231.73M
Discontinued Operations	0	0	0	0	0	0	0	11.83M	62.77M	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.59	1.60	6.34	3.24	3.93	4.16	3.66	4.70	7.12	9.43
EPS Growth %	-0.09%	0.01%	2.96%	-0.49%	0.21%	0.06%	-0.12%	0.28%	0.51%	0.32%
EPS (Basic)	1.60	1.60	6.41	3.29	3.99	4.22	3.70	4.73	7.14	9.44
Diluted Shares Outstanding	25.46M	23.98M	24.27M	24.54M	24.62M	24.53M	24.52M	24.52M	24.53M	24.57M
Basic Shares Outstanding	25.37M	23.9M	24M	24.14M	24.25M	24.16M	24.22M	24.35M	24.47M	24.54M
Dividend Payout Ratio	0.64%	0.64%	0.16%	0.39%	0.37%	0.39%	0.47%	0.38%	0.26%	0.2%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	107.12M	97.73M	108.37M	122.52M	130.44M	124.55M	160.99M	170.89M	228.25M	234.45M
Cash & Short-Term Investments	1.1M	852K	2.5M	1.51M	2.34M	1.24M	1.49M	957K	877K	807K
Cash Only	1.1M	852K	2.5M	1.51M	2.34M	1.24M	1.49M	957K	877K	807K
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	106.02M	96.88M	105.87M	121.02M	128.1M	123.32M	159.5M	169.94M	227.37M	219.34M
Days Sales Outstanding	95.65	83.38	83.64	88.64	82	78.61	94.38	97.58	99.77	87.89
Inventory	0	0	0	0	0	0	0	0	0	14.3M
Days Inventory Outstanding	-	-	-	-	-	-	-	-	-	10.98
Other Current Assets	0	0	0	0	0	0	0	0	0	0
Total Non-Current Assets+	1.06B	1.04B	1.05B	1.11B	1.19B	1.16B	1.45B	1.54B	2.04B	2.07B
Property, Plant & Equipment	979.35M	968.56M	981.49M	1.03B	1.11B	1.08B	1.21B	1.14B	1.51B	1.6B
Fixed Asset Turnover	0.41x	0.44x	0.47x	0.48x	0.51x	0.53x	0.51x	0.56x	0.55x	0.57x
Goodwill	27.81M	27.81M	27.81M	27.81M	28.2M	28.2M	132.39M	106.4M	323.22M	323.22M
Intangible Assets	9.46M	8.6M	7.72M	7.25M	7.33M	7.12M	47.05M	35.43M	64.59M	54.33M
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	28.8M	25.58M	22.46M	31.82M	35.36M	33.25M	43.95M	235.06M	87.99M	67.88M
Total Assets+	1.17B	1.14B	1.16B	1.23B	1.32B	1.29B	1.61B	1.71B	2.27B	2.31B
Asset Turnover	0.35x	0.37x	0.40x	0.41x	0.43x	0.44x	0.38x	0.37x	0.37x	0.39x
Asset Growth %	0.05%	-0.02%	0.01%	0.06%	0.08%	-0.03%	0.25%	0.06%	0.33%	0.02%
Total Current Liabilities+	71.94M	78.2M	86.41M	90.84M	109.17M	108.33M	136.31M	151.21M	167.52M	174.04M
Accounts Payable	71.94M	78.2M	86.41M	90.84M	99.23M	100.05M	125.32M	139.61M	152.75M	60.08M
Days Payables Outstanding	115.35	118.98	123.35	125.09	119.11	118.25	130.46	135.39	127.23	46.12
Short-Term Debt	0	0	0	0	9.95M	8.29M	11M	11.6M	14.77M	12.62M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	0	0	0	0	0	0	0	0	101.34M
Current Ratio	1.49x	1.25x	1.25x	1.35x	1.19x	1.15x	1.18x	1.13x	1.36x	1.35x
Quick Ratio	1.49x	1.25x	1.25x	1.35x	1.19x	1.15x	1.18x	1.13x	1.36x	1.26x
Cash Conversion Cycle	-	-	-	-	-	-	-	-	-	52.75
Total Non-Current Liabilities+	716.22M	669.22M	546.88M	566.36M	580.7M	496.86M	741.93M	752.69M	1.17B	1.01B
Long-Term Debt	381.28M	326.27M	303.41M	298.56M	293.43M	222.75M	426.45M	413.74M	762.98M	590.21M
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	0
Deferred Tax Liabilities	298.65M	305.46M	204.25M	218.09M	232.31M	228.13M	256.76M	203.36M	292.84M	309.55M
Other Non-Current Liabilities	0	0	0	0	0	0	0	53.17M	0	0
Total Liabilities	788.16M	747.43M	633.29M	657.2M	689.88M	605.2M	878.24M	903.9M	1.33B	1.18B
Total Debt+	381.28M	326.27M	303.41M	298.56M	303.38M	231.04M	437.45M	425.34M	777.75M	602.83M
Net Debt	380.18M	325.41M	300.91M	297.06M	301.03M	229.8M	435.96M	424.38M	776.87M	602.02M
Debt / Equity	1.00x	0.83x	0.58x	0.52x	0.48x	0.34x	0.60x	0.53x	0.83x	0.54x
Debt / EBITDA	2.36x	2.03x	1.75x	1.50x	1.31x	0.98x	1.83x	1.62x	2.60x	1.71x
Net Debt / EBITDA	2.36x	2.03x	1.74x	1.49x	1.30x	0.98x	1.82x	1.62x	2.60x	1.71x
Interest Coverage	7.63x	6.49x	8.15x	9.55x	11.46x	16.02x	12.67x	12.38x	4.68x	5.17x
Total Equity+	379.69M	394.29M	524.18M	571.53M	634.04M	682.6M	732.02M	803.95M	933.8M	1.12B
Equity Growth %	-0.11%	0.04%	0.33%	0.09%	0.11%	0.08%	0.07%	0.1%	0.16%	0.2%
Book Value per Share	14.91	16.45	21.60	23.29	25.75	27.83	29.86	32.79	38.07	45.72
Total Shareholders' Equity	379.69M	394.29M	524.18M	571.53M	634.04M	682.6M	732.02M	803.95M	933.8M	1.12B
Common Stock	101.05M	101.82M	102.95M	103.8M	106.36M	106.29M	108.61M	110.08M	111.12M	116.25M
Retained Earnings	278.71M	292.52M	421.4M	467.78M	527.75M	576.42M	623.47M	693.94M	822.8M	1.01B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-67K	-55K	-168K	-49K	-70K	-104K	-54K	-78K	-116K	0
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	144.55M	141.76M	122.39M	142.67M	187.99M	180.5M	195.74M	194.43M	95.34M	374.38M
Operating CF Margin %	0.36%	0.33%	0.26%	0.29%	0.33%	0.32%	0.32%	0.31%	0.11%	0.41%
Operating CF Growth %	0.18%	-0.02%	-0.14%	0.17%	0.32%	-0.04%	0.08%	-0.01%	-0.51%	2.93%
Net Income	40.47M	38.25M	153.92M	79.41M	96.81M	101.98M	89.7M	115.14M	174.62M	231.73M
Depreciation & Amortization	84.28M	81.18M	78.42M	81.97M	89.48M	94.64M	106.69M	111.34M	109.38M	107.45M
Stock-Based Compensation	3.4M	3.09M	3.2M	4.11M	5.89M	5.55M	7.67M	8.01M	8.28M	9.5M
Deferred Taxes	14.45M	7.75M	-96.63M	12.04M	-20.38M	-18.06M	-24.78M	4.49M	-16.95M	38.57M
Other Non-Cash Items	-23.71M	-19.42M	81.73M	-30.46M	11K	11K	15K	-36.75M	-94.44M	-42.2M
Working Capital Changes	25.67M	30.91M	-98.25M	-4.39M	16.19M	-3.62M	16.44M	-7.8M	-85.53M	29.31M
Change in Receivables	3.88M	-3.75M	-10.47M	-15.72M	-7.32M	3.44M	-24.4M	-31.36M	-37.78M	6.14M
Change in Inventory	1.71M	14.22M	3.12M	-9.35M	-20.3M	-316K	-12.23M	0	-29.33M	1.12M
Change in Payables	-1.52M	11.49M	4.01M	-1.61M	20.3M	316K	12.23M	16.35M	-32.53M	11.84M
Cash from Investing+	-114.14M	-60.18M	-70.85M	-104.49M	-143.14M	-53M	-351.7M	-131.43M	-391.87M	-150.75M
Capital Expenditures	-140.36M	-89.59M	-109.2M	-138.74M	-179.78M	-100.05M	-116.83M	-205.31M	-273.67M	-231.46M
CapEx % of Revenue	0.35%	0.21%	0.24%	0.28%	0.32%	0.17%	0.19%	0.32%	0.33%	0.25%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	26.21M	29.41M	38.34M	41.79M	44.45M	0	48.25M	0	343.88M	0
Cash from Financing+	-30.47M	-81.83M	-49.85M	-39.07M	-44.02M	-128.45M	156.2M	-63.53M	296.44M	-223.69M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-25.78M	-24.45M	-24.88M	-30.94M	-35.54M	-39.77M	-42.18M	-44.27M	-45.56M	-46.76M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-1.85M	-2.35M	-2.07M	-3.26M	-3.33M	-4.38M	-5.34M	-6.54M	-7.23M	-4.37M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	4.19M	52.17M	13.19M	3.93M	8.21M	80.45M	78.92M	-10.87M	-178.32M	334.15M
FCF Margin %	0.01%	0.12%	0.03%	0.01%	0.01%	0.14%	0.13%	-0.02%	-0.21%	0.37%
FCF Growth %	1.1%	11.44%	-0.75%	-0.7%	1.09%	8.8%	-0.02%	-1.14%	-15.4%	2.87%
FCF per Share	0.16	2.18	0.54	0.16	0.33	3.28	3.22	-0.44	-7.27	13.60
FCF Conversion (FCF/Net Income)	3.57x	3.71x	0.80x	1.80x	1.94x	1.77x	2.18x	1.69x	0.55x	1.62x
Interest Paid	10.04M	12.44M	11.82M	12.6M	12.47M	9.05M	10.33M	14.78M	38.6M	48.32M
Taxes Paid	2.5M	15.55M	29.5M	18.16M	17.53M	34.9M	9.09M	27.36M	91.56M	36.52M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	10.06%	9.88%	33.52%	14.49%	16.06%	15.49%	12.68%	14.99%	20.1%	22.53%
Return on Invested Capital (ROIC)	7.67%	8.04%	9.2%	10.4%	11.76%	11.43%	9.55%	9.47%	9.68%	10.66%
Gross Margin	43.73%	43.43%	44.66%	46.81%	46.68%	46.06%	43.16%	40.79%	47.32%	47.8%
Net Margin	10%	9.02%	33.31%	15.93%	16.98%	17.81%	14.54%	18.11%	20.99%	25.44%
Debt / Equity	1.00x	0.83x	0.58x	0.52x	0.48x	0.34x	0.60x	0.53x	0.83x	0.54x
Interest Coverage	7.63x	6.49x	8.15x	9.55x	11.46x	16.02x	12.67x	12.38x	4.68x	5.17x
FCF Conversion	3.57x	3.71x	0.80x	1.80x	1.94x	1.77x	2.18x	1.69x	0.55x	1.62x
Revenue Growth	-0.88%	4.83%	8.95%	7.86%	14.43%	0.41%	7.73%	3.05%	30.86%	9.51%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Mobile Modular	368.57M	419.02M	462.53M	-	301.01M	321.52M	363.32M	461.72M	562.24M	635.37M
Mobile Modular Growth	-	13.69%	10.38%	-	-	6.82%	13.00%	27.08%	21.77%	13.01%
Trs Ren Telco	230.03M	217.23M	216.09M	-	131.48M	140.81M	140.19M	150.78M	148.28M	135.25M
Trs Ren Telco Growth	-	-5.56%	-0.53%	-	-	7.09%	-0.44%	7.55%	-1.66%	-8.79%
Portable Storage	-	-	-	-	-	-	-	-	101.14M	94.5M
Portable Storage Growth	-	-	-	-	-	-	-	-	-	-6.57%
Enviroplex	32.75M	66.45M	94.11M	-	39.81M	32.74M	31.08M	23.17M	20.19M	45.83M
Enviroplex Growth	-	102.87%	41.63%	-	-	-17.78%	-5.06%	-25.45%	-12.85%	126.97%
Adler Tanks	189.26M	167.66M	182.71M	-	97.92M	77.48M	82.24M	98.16M	-	-
Adler Tanks Growth	-	-11.41%	8.98%	-	-	-20.87%	6.14%	19.35%	-	-
Product	-	-	-	92.62M	-	-	-	-	-	-
Product Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

McGrath RentCorp (MGRC) has a price-to-earnings (P/E) ratio of 11.8x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

McGrath RentCorp (MGRC) reported $931.2M in revenue for fiscal year 2024. This represents a 172% increase from $342.7M in 2011.

McGrath RentCorp (MGRC) grew revenue by 9.5% over the past year. This is steady growth.

Yes, McGrath RentCorp (MGRC) is profitable, generating $145.4M in net income for fiscal year 2024 (25.4% net margin).

Dividend & Returns

Yes, McGrath RentCorp (MGRC) pays a dividend with a yield of 1.71%. This makes it attractive for income-focused investors.

McGrath RentCorp (MGRC) has a return on equity (ROE) of 22.5%. This is excellent, indicating efficient use of shareholder capital.

McGrath RentCorp (MGRC) generated $150.2M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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