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

$117.16+0.35(<0.01%)After hours

Market Cap

$2.89B

P/E

18.1x

P/S

3.0x

P/B

2.3x

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

ExcellentMetricSide Score: 84/100

Strongest: Cash & Earnings Quality (25/25); weakest: Growth (16/25).

Profitability23/25

Growth16/25

Balance Sheet & Red Flags20/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowStrong marginsLow leverageInterest easily covered

Valuation vs. 5-year range

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

P/E · 18.1x5y range 11.3x – 23.5x

Currently near its 20-quarter median.

P/S · 3.0x5y range 2.7x – 3.5x

Currently near its 20-quarter median.

P/B · 2.3x5y range 2.1x – 3.1x

Watch items

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

Some Concerns

Margin Pressure

Watch

Operating margins declined 6.1% — watch for continued compression, which may signal competitive or cost pressure.

Price & Volume

Market Cap $2.89B

Metrics at a Glance

as of September 2026

Revenue & Profit

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

TTM Revenue: $951.02M
Q. Revenue: $274.61M
TTM EBITDA: $411.44M
TTM Op. Income: $244.79M
Q. Op. Income: $73.94M
TTM Net Income: $159.34M
Q. Net Income: $48.80M
EPS: $2
Shares Out.: $24.41M

$951.02M in TTM revenue grew 2.1% YoY, reaching $274.61M last quarter. TTM EBITDA of $411.44M and TTM operating income of $244.79M show growth is flowing through to the bottom line. TTM net income of $159.34M means revenue is converting into profit. Over the past year, TTM revenue is up 2% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 47.7%
EBITDA Margin: 37.7%
Op. Margin: 26.9%
Net Margin: 17.8%

Op. margin of 26.9% is up 0.9% YoY — cost efficiency is improving. Net margin at 17.8% and gross margin of 47.7% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

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

P/E Ratio: 18.1x
P/S Ratio: 3.0x
P/B Ratio: 2.3x

At 18.1x P/E, the stock trades within typical market levels. P/S of 3.0x and P/B of 2.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 8% — an improving trend.

Assets & Liabilities

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

Total Assets: $2.58B
Cash: $1.04M
Long-Term Debt: $618.26M
Book Value: $1.28B
D/E Ratio: 0.5
Debt/EBITDA: 6.0

With $2.58B in assets and $618.26M in long-term debt, D/E is 0.5and book value is $1.28B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

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

Op. Cash Flow: $72.28M
TTM Free Cash Flow: $209.78M
FCF Margin: 22.1%
FCF / Net Income: 1.3

TTM FCF of $209.78M on $72.28M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.