McGrath RentCorp (MGRC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

McGrath RentCorp

NasdaqGS•Industrials•Rental & Leasing Services

$110.89-0.69(-0.01%)Market closed

Market Cap

$2.71B

P/E

17.8x

P/S

2.9x

P/B

2.2x

McGrath RentCorp operates as a business-to-business rental company in the United States and internationally. 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.

How this company scores

GoodMetricSide Score: 60/100

Strongest: Balance Sheet & Red Flags (19/25); weakest: Growth (8/25).

Profitability17/25

Growth8/25

Balance Sheet & Red Flags19/25

Cash & Earnings Quality16/25

Strengths

Strong marginsLow leverageCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 17.8x5y range 11.3x – 23.5x

Currently near its 20-quarter median.

P/S · 2.9x5y range 2.7x – 3.5x

Currently near its 20-quarter median.

P/B · 2.2x5y range 2.1x – 3.1x

Currently near its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 8.6% — watch for continued compression, which may signal competitive or cost pressure.

Price & Volume

Market Cap $2.71B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $932.86M
Q. Revenue: $221.11M
TTM EBITDA: $401.50M
TTM Op. Income: $237.57M
Q. Op. Income: $53.28M
TTM Net Income: $152.83M
Q. Net Income: $33.67M
EPS: $1.38
Shares Out.: $24.48M

$932.86M in TTM revenue declined 0.9% YoY, reaching $221.11M last quarter. TTM EBITDA of $401.50M and TTM operating income of $237.57M show growth is flowing through to the bottom line. TTM net income of $152.83M means revenue is converting into profit. Over the past year, TTM revenue is down 1% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 48.8%
EBITDA Margin: 37.0%
Op. Margin: 24.1%
Net Margin: 15.2%

Op. margin of 24.1% is down 0.2% YoY — costs are rising relative to revenue. Net margin at 15.2% and gross margin of 48.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 1% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 17.8x
P/S Ratio: 2.9x
P/B Ratio: 2.2x

At 17.8x P/E, the stock trades within typical market levels. P/S of 2.9x and P/B of 2.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.50B
Cash: $4.38M
Long-Term Debt: $589.89M
Book Value: $1.25B
D/E Ratio: 0.5
Debt/EBITDA: 7.2

With $2.50B in assets and $589.89M in long-term debt, D/E is 0.5and book value is $1.25B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $63.33M
TTM Free Cash Flow: $209.53M
FCF Margin: 22.5%
FCF / Net Income: 1.4

TTM FCF of $209.53M on $63.33M in operating cash flow. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 33% — an improving trend.