-1.32%
11.20%
6.34%
20.19%
-5.11%
62.95%
57.57%
AI Spotlight on MGRC
Company Description
McGrath 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.
Market Data
| Last Price | 122.67 |
| Change Percentage | -1.32% |
| Open | 123.52 |
| Previous Close | 124.31 |
| Market Cap ( Millions) | 3012 |
| Volume | 143952 |
| Year High | 130.86 |
| Year Low | 95.5 |
| M A 50 | 117.78 |
| M A 200 | 110.57 |
Financial Ratios
| FCF Yield | 0.82% |
| Dividend Yield | 1.55% |
| ROE | 22.91% |
| Debt / Equity | 55.62% |
| Net Debt / EBIDTA | 130.21% |
| Price To Book | 2.75 |
| Price Earnings Ratio | 13.4 |
| Price To FCF | 121.44 |
| Price To sales | 3.39 |
| EV / EBITDA | 7.79 |
News
- Jan -16 - McGrath Appoints Philip B. Hawkins to Chief Operating Officer
- Dec -31 - McGrath RentCorp: Modular Segment Should Lead Growth Ahead
- Nov -26 - McGrath (MGRC) Upgraded to Strong Buy: What Does It Mean for the Stock?
- Oct -25 - McGrath RentCorp (MGRC) Q3 2024 Earnings Call Transcript
- Oct -24 - McGrath (MGRC) Q3 Earnings and Revenues Top Estimates
- Sep -18 - Why McGrath RentCorp Stock Slumped on Wednesday
- Sep -18 - McGrath Confirms Agreement to Terminate Pending Merger with WillScot
- Aug -02 - McGrath Announces Board Leadership Update
- Jul -26 - McGrath RentCorp (MGRC) Q2 2024 Earnings Call Transcript
- Jul -25 - McGrath (MGRC) Misses Q2 Earnings Estimates
- Jul -18 - Earnings Preview: McGrath (MGRC) Q2 Earnings Expected to Decline
- Jun -17 - McGrath (MGRC) Upgraded to Buy: Here's Why
- Jun -12 - SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates SQSP, AGR on Behalf of Shareholders
- Jun -11 - SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates MGRC, SLCA on Behalf of Shareholders
- Jun -11 - McGrath Sets Date for Special Meeting of Shareholders to Vote on Acquisition by WillScot Mobile Mini
- Jun -11 - SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of ICC Holdings, Inc. - ICCH
- Jun -05 - McGrath Declares Quarterly Dividend
- May -20 - McGrath RentCorp (NASDAQ:MGRC) Shares Sold by Amalgamated Bank
- May -13 - MCGRATH RENTCORP INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of McGrath RentCorp - MGRC
- Apr -26 - McGrath RentCorp (MGRC) Q1 2024 Earnings Call Transcript
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Mobile Modular
Expected Growth : 2.5 %
What the company do ?
Mobile Modular from McGrath RentCorp offers portable, temporary and permanent modular buildings for education, healthcare, and commercial industries.
Why we expect these perspectives ?
Mobile Modular's 2.5% growth is driven by increasing demand for temporary space solutions in education, healthcare, and construction industries. Expanding rental fleet, strategic acquisitions, and a strong backlog of orders also contribute to growth. Additionally, McGrath RentCorp's diversification efforts and cost-saving initiatives enhance operational efficiency, further supporting segment growth.
Segment n°2 -> TRS-RenTelco
Expected Growth : 2.8 %
What the company do ?
TRS-RenTelco is a leading provider of temporary rental equipment for the telecommunications industry, offering a range of solutions for wireless, wireline, and broadband networks.
Why we expect these perspectives ?
TRS-RenTelco's 2.8% growth is driven by increasing demand for temporary equipment rentals in the non-residential construction market, coupled with McGrath RentCorp's strategic expansion into new geographic markets and product offerings. Additionally, the company's focus on operational efficiency and cost management has enabled it to maintain a competitive pricing strategy, further fueling growth.
Segment n°3 -> Portable Storage
Expected Growth : 2.2 %
What the company do ?
Portable Storage from McGrath RentCorp offers mobile storage containers for rent, providing flexible and secure on-site storage solutions for various industries.
Why we expect these perspectives ?
The 2.2% growth in Portable Storage from McGrath RentCorp is driven by increasing demand for temporary storage solutions in construction, oil and gas, and government sectors. Additionally, the need for flexible and secure storage options for remote projects and events contributes to the growth. Furthermore, the company's strategic expansion into new markets and its focus on providing value-added services also support the growth momentum.
Segment n°4 -> Enviroplex
Expected Growth : 2.6 %
What the company do ?
Enviroplex is a modular, portable, and relocatable building solution from McGrath RentCorp, offering flexible and sustainable space for various industries.
Why we expect these perspectives ?
Enviroplex's 2.6% growth is driven by increasing demand for portable storage solutions, expansion into new markets, and a growing need for environmentally friendly storage options. Additionally, McGrath RentCorp's strategic acquisitions and investments in technology have enhanced operational efficiency, contributing to the segment's growth.
Mcgrath Rentcorp Products
| Product Range | What is it ? |
|---|---|
| Mobile Modular Classrooms | Temporary or permanent modular classrooms for schools and educational institutions |
| Portable Storage Containers | Secure, portable storage containers for rent or sale |
| Modular Office Buildings | Temporary or permanent modular office buildings for construction sites, events, or remote workspaces |
| Liquid and Solid Waste Containment Solutions | Containment solutions for liquid and solid waste, including tanks, boxes, and filters |
| Tank and Pump Rentals | Rental of tanks and pumps for liquid storage and transfer |
| Electrical Distribution Equipment Rentals | Rental of electrical distribution equipment, including generators, switchgear, and distribution panels |
McGrath RentCorp's Porter Forces
Threat Of Substitutes
McGrath RentCorp's equipment rental services can be substituted with purchasing equipment, but the high upfront costs and maintenance requirements make rental services a more attractive option for many customers.
Bargaining Power Of Customers
McGrath RentCorp's customers have limited bargaining power due to the company's diverse customer base and lack of concentration in any one industry or customer segment.
Bargaining Power Of Suppliers
McGrath RentCorp's suppliers have some bargaining power due to the specialized nature of the equipment they provide, but the company's long-term relationships and diversified supplier base mitigate this risk.
Threat Of New Entrants
The threat of new entrants is low due to the high capital requirements and regulatory hurdles associated with entering the equipment rental industry.
Intensity Of Rivalry
The equipment rental industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 45.44% |
| Debt Cost | 7.10% |
| Equity Weight | 54.56% |
| Equity Cost | 8.00% |
| WACC | 7.59% |
| Leverage | 83.29% |
McGrath RentCorp : Quality Control
McGrath RentCorp passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CAR | Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers. It operates the Avis brand, that … |
| FTAIM | FTAI Aviation Ltd. owns and acquires infrastructure and related equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation … |
| FTAI | FTAI Aviation Ltd. owns and acquires infrastructure and related equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation … |
| HRI | Herc Holdings Inc., through its subsidiaries, operates as an equipment rental supplier in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, … |
| FTAIP | Fortress Transportation and Infrastructure Investors LLC owns and acquires infrastructure and related equipment for the transportation of goods and people in Africa, Asia, Europe, North America, and South America. It … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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FTAI Aviation
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FTAI Aviation
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McGrath Rent
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5
Herc
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6
