McGrath RentCorp
- Open
- 111.77
- Day high
- 111.83
- Day low
- 109.48
- Prev close
- 110.84
- Volume
- 116K
- Mkt cap
- $2.7B
- P/E (TTM)
- 17.6
- EPS (TTM)
- $6.22
- P/B
- 2.1
- P/S
- 2.9
- Yield
- 1.79%
- Per share
- $1.96
- ▼Insiders net selling -$3.2M over the last 3 months (0 open-market buys, 12 sales)
- 🏛Institutions accumulating (13F)
McGrath RentCorp (MGRC) is a Industrials company listed on NASDAQ. The stock is down 10% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 12 sales (SEC Form 4). Drillr has 1 published research article covering MGRC.
McGrath RentCorp (MGRC) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MGRC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $1.47 | $1.37 | -7.1% | $221M | -6.6% |
| Apr 29, 2026 | $1.14 | $1.10 | -3.1% | $199M | +0.1% |
| Feb 25, 2026 | $1.74 | $2.02 | +15.9% | $257M | +27.0% |
| Oct 23, 2025 | $1.84 | $1.72 | -6.7% | $256M | +0.1% |
| Jul 24, 2025 | $1.29 | $1.46 | +12.9% | $236M | -14.1% |
| Apr 24, 2025 | $1.02 | $1.15 | +12.7% | $195M | +2.9% |
| Feb 19, 2025 | $1.50 | $1.58 | +5.7% | $244M | -1.1% |
| Oct 24, 2024 | $1.39 | $1.87 | +34.5% | $267M | +7.5% |
| Jul 25, 2024 | $1.25 | $0.84 | -32.7% | $213M | +0.6% |
| Apr 25, 2024 | $0.73 | $0.93 | +26.7% | $188M | +8.7% |
| Feb 21, 2024 | $1.38 | $1.30 | -5.9% | $222M | +2.5% |
| Oct 26, 2023 | $1.26 | $1.49 | +18.6% | $244M | +13.0% |
MGRC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 20, 2026 | Wescott Taraofficer: SVP, Chief HR Officer | Sell | 1,325 | $122.00 |
| Aug 13, 2026 | Hawkins Philip Bofficer: President and CEO | Sell | 4,430 | $120.91 |
| Aug 13, 2026 | Hawkins Philip Bofficer: President and CEO | Sell | 5 | $124.00 |
| Aug 13, 2026 | Skenesky John Pofficer: VP and Division Manager | Sell | 2,000 | $120.41 |
| Jul 2, 2026 | HANNA JOSEPH Fdirector | Sell | 2,237 | $121.23 |
| Jul 2, 2026 | HANNA JOSEPH Fdirector | Sell | 460 | $119.21 |
| Jul 2, 2026 | HANNA JOSEPH Fdirector | Sell | 4,803 | $120.51 |
| Jun 29, 2026 | Lieffrig Johnofficer: VP and Division Manager | Sell | 500 | $125.00 |
| Jun 29, 2026 | Lieffrig Johnofficer: VP and Division Manager | Sell | 2,000 | $125.00 |
| Jun 16, 2026 | Malek Gildaofficer: SVP, Chief Legal Officer | Sell | 1,407 | $114.04 |
| Jun 12, 2026 | VAN TREASE KRISTINAofficer: Chief Strategy Officer | Sell | 3,783 | $113.65 |
| Jun 12, 2026 | Whitney David Mofficer: SVP, Chief Accounting Officer | Sell | 3,783 | $113.65 |
| May 19, 2026 | Whitney David Mofficer: SVP, Chief Accounting Officer | Sell | 539 | $115.00 |
| May 19, 2026 | VAN TREASE KRISTINAofficer: Chief Strategy Officer | Sell | 539 | $115.00 |
| May 5, 2026 | HANNA JOSEPH Fdirector | Sell | 530 | $112.00 |
Source: MGRC SEC Form 4 filings, latest Aug 20, 2026. For informational purposes only — not investment advice.
See the full MGRC insider & 13F page →McGrath RentCorp company profile
Overview
McGrath RentCorp (NASDAQ:MGRC) is a business-to-business rental company founded in 1979 and headquartered in Livermore, California. The company went public in 1984 and has operated for over four decades as a specialized provider of temporary and portable solutions across multiple industries. McGrath RentCorp serves customers throughout the United States and internationally through four primary business segments: Mobile Modular (relocatable buildings), TRS-RenTelco (electronic test equipment), Adler Tanks (liquid containment), and Enviroplex (portable classroom manufacturing). The company has established itself as a leading provider of temporary infrastructure solutions, particularly in education, commercial construction, and industrial testing markets.
Business
McGrath RentCorp operates in the specialized equipment rental industry, providing temporary infrastructure and testing solutions to businesses, educational institutions, and government entities. The company's operations are divided into four distinct segments: Mobile Modular represents the largest segment, generating approximately 65-70% of total revenues. This division rents and sells relocatable modular buildings that serve as temporary classrooms, office spaces, construction field offices, healthcare clinics, and various other facilities. These prefabricated structures can be quickly deployed and configured to meet specific customer needs. The segment also offers "Mobile Modular Plus" services, which include site preparation, installation, and ongoing maintenance. The modular buildings industry serves customers who need temporary space solutions during construction projects, facility renovations, emergency situations, or capacity expansions. TRS-RenTelco accounts for roughly 15-20% of revenues and specializes in renting electronic test equipment to aerospace, defense, electronics, and telecommunications industries. The equipment includes oscilloscopes, signal analyzers, network testing devices, and communications test equipment. This segment serves manufacturers, research facilities, and field technicians who require sophisticated testing capabilities without the capital investment of purchasing expensive equipment outright. Portable Storage generates approximately 10-15% of revenues through rental of storage containers and portable units. These solutions serve construction sites, retail locations, and businesses needing temporary storage during relocations or expansions. Adler Tanks and Enviroplex represent smaller segments, with Adler Tanks providing liquid containment solutions for environmental and industrial applications, while Enviroplex manufactures portable classrooms specifically for California's educational market.
Revenue model
McGrath RentCorp generates revenue through multiple streams within its rental-focused business model. The primary revenue source is rental income, which typically accounts for 70-80% of total revenues across all segments. Customers pay monthly rental fees for equipment and structures, with contracts ranging from short-term projects lasting weeks to multi-year arrangements. The company also generates sales revenue by selling both new and used rental equipment, representing 20-30% of total revenues. The company's customers include public school districts, commercial construction companies, aerospace and defense contractors, telecommunications providers, and various industrial manufacturers. In the Mobile Modular segment, educational institutions represent a significant customer base, particularly during peak summer construction seasons when schools undertake facility improvements and expansions. Several factors influence McGrath RentCorp's profitability margins. Positive margin drivers include the company's pricing power during periods of strong demand, high fleet utilization rates, and the ability to provide value-added services like site preparation and maintenance. The rental business model benefits from recurring revenue streams and the ability to rent the same asset multiple times over its useful life. Negative margin pressures come from economic downturns that reduce construction activity, competitive pricing in local markets, higher interest rates that increase borrowing costs for fleet expansion, and inflationary pressures on labor and materials costs. The cyclical nature of construction and technology spending also creates variability in demand across different segments, with the TRS-RenTelco segment particularly sensitive to semiconductor industry cycles and telecommunications infrastructure investment patterns.
Competitive moat
McGrath RentCorp operates in a moderately competitive industry with several sources of competitive advantage, though its moat is not exceptionally deep. The company's primary competitive strengths include its geographic diversification across multiple markets, which reduces dependence on any single regional economy, and its specialized expertise in complex modular installations and electronic test equipment servicing. The company has built strong relationships with educational institutions and maintains a reputation for reliable service delivery, particularly in the education sector where timing and compliance are critical. However, the rental equipment industry faces significant competitive pressures. Large national competitors like United Rentals and the now-separate WillScot Mobile Mini (following the terminated merger) have greater scale advantages and broader geographic coverage. Local and regional competitors can often provide more personalized service and competitive pricing in specific markets. The modular building industry also faces competition from traditional construction methods and permanent building solutions when projects extend beyond short-term needs. The company's barriers to entry are moderate, primarily consisting of capital requirements for fleet acquisition and the need for local market knowledge and relationships. However, these barriers are not insurmountable for well-capitalized competitors. The TRS-RenTelco segment faces additional challenges from equipment manufacturers offering direct rental programs and the trend toward equipment leasing rather than rental. Overall, while McGrath RentCorp has established market positions and operational expertise, its competitive moat is relatively narrow and requires continuous investment in fleet quality, geographic expansion, and service capabilities to maintain market share.
Risks & safety
McGrath RentCorp demonstrates a moderate margin of safety with some financial strengths offset by leverage concerns. • Liquidity and Cash Position: Low cash reserves of $3.4 million as of Q1 2025, but strong operating cash flow generation of $54 million quarterly provides adequate liquidity for operations • Debt and Solvency: Debt-to-equity ratio of 0.49 indicates moderate leverage; current ratio of 0.87 shows working capital constraints but manageable given the rental business model's cash generation characteristics • Valuation Metrics: Trading at 24.3x P/E ratio and 11.4x EV/EBITDA, suggesting fair to slightly expensive valuation relative to historical norms; Graham number of $34.56 indicates potential overvaluation at current price of $104 • Profitability and Returns: ROE of 2.5% appears low but reflects recent quarterly performance; full-year 2024 ROE of 20.6% demonstrates stronger underlying profitability • Other Considerations: Strong free cash flow generation of $50 million quarterly, 34 consecutive years of dividend increases demonstrating management's commitment to shareholder returns, and diversified revenue streams provide some downside protection
Recent development
Over the past few years, McGrath RentCorp has undergone significant strategic developments and operational changes. The most notable event was the terminated merger with WillScot Mobile Mini in 2024, which would have created a $3.8 billion combined entity. Although the merger was ultimately called off due to regulatory concerns, McGrath received a $180 million termination fee that significantly boosted 2024 financial results. The company has pursued an aggressive acquisition strategy, completing the integration of Vesta Modular and executing multiple tuck-in acquisitions in the portable storage segment. These acquisitions have expanded McGrath's geographic footprint and enhanced its service capabilities, particularly in the Mobile Modular segment where the company has focused on developing Mobile Modular Plus services that include site preparation, installation, and ongoing maintenance beyond basic equipment rental. Operational improvements have centered on pricing optimization across all segments, with management successfully implementing rental rate increases despite challenging market conditions. The company has also invested heavily in fleet expansion and modernization, particularly in the modular buildings segment where utilization rates have improved significantly. In response to market softness in certain segments, particularly TRS-RenTelco and Portable Storage, management has scaled back equipment purchases and focused on fleet optimization. Geographic expansion remains a key strategic priority, with the company continuing to evaluate acquisition opportunities that would extend its market reach. Management has also emphasized developing custom modular solutions and expanding service offerings to differentiate from competitors and improve margins. The recent promotion of Phil Hawkins to Chief Operating Officer reflects the company's focus on operational excellence and strategic execution.
MGRC company profile · for informational purposes only — not investment advice.
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