McGrath RentCorp (MGRC) AI Stock Analysis

McGrath RentCorp provides diverse rental and sales solutions across specialized industry segments domestically and internationally. Its Mobile Modular segment rents relocatable modular buildings for classrooms, offices, and healthcare clinics, as well as portable storage containers. TRS-RenTelco rents and sells electronic test equipment, such as oscilloscopes and analyzers, to aerospace, defense, and semiconductor industries. Adler Tanks rents steel tanks, vacuum containers, and dewatering boxes for temporary liquid and solid containment and hazardous material transport. Additionally, Enviroplex manufactures and sells portable classrooms directly to California public school districts and educational institutions.

Revenue expanded at a 5-year CAGR of 10.5% from FY2020 to FY2025, climbing from $616.8M in FY2021 to $944.2M in FY2025. Annual net income peaked in FY2024 at $231.7M with a net margin of 25.4%, before moderating to $156.3M in FY2025 with an EPS of $6.37. For the latest quarter ended June 30, 2026, quarterly revenue fell 6.2% year-over-year, and quarterly earnings decreased 6.2%. Trailing twelve-month revenue stood at $932.9M, achieving an operating margin of 23.3% and a profit margin of 16.4%, with an EPS of $6.21.

As of June 30, 2026, McGrath RentCorp held $4.4M in cash and short-term investments against total debt of $589.9M, resulting in net debt of $585.5M. Total assets were $2.50B, and shareholders' equity reached $1.25B, producing a debt-to-equity ratio of 0.47 and a current ratio of 0.40. In FY2025, operating cash flow was $255.7M, supporting capital expenditures of $44.4M and generating free cash flow of $211.3M. The company allocated $47.9M toward dividends paid during that fiscal year.

McGrath RentCorp trades at a trailing P/E of 18.2x and a forward P/E of 16.2x, below the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. Its EV/EBITDA multiple is 9.4x compared to the peer median of 13.9x, while its price-to-sales ratio of 3.0x sits above the peer median of 1.5x. Over the past year, the stock fell 1.9%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, the stock appreciated 63.6% compared to 83.0% for the benchmark.

McGrath RentCorp pays a quarterly dividend with an annual forward payout of $1.98 per share, yielding 1.75%. The dividend payout ratio stands at 31.7%, backed by 37 consecutive years of dividend payments. Over the past five years, the annualized dividend growth rate was 3.4%, with the most recent ex-dividend date on October 16, 2026.

Wall Street analysts coverage consists of 1 Strong Buy, 2 Buys, and no Hold or Sell recommendations. The mean price target is $145.40, representing an upside of 28.6% above the last close of $113.03. For the current fiscal year ending December 31, 2026, consensus estimates point to revenue of $963.2M and EPS of $6.35. The company beat EPS estimates in 1 of the last 4 quarters, and its next earnings release is scheduled for October 28, 2026.

This page is an AI-written research summary of McGrath RentCorp (MGRC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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