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McGrath RentCorp

Nasdaq:MGRC
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGRC
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

McGrath RentCorp operates as a business to business rental company in the United States and internationally. The last earnings update was 37 days ago. More info.


Add to Portfolio Compare Print
  • McGrath RentCorp has significant price volatility in the past 3 months.
MGRC Share Price and Events
7 Day Returns
-4.8%
NasdaqGS:MGRC
-1.1%
US Commercial Services
-1.1%
US Market
1 Year Returns
-9.1%
NasdaqGS:MGRC
-18.5%
US Commercial Services
-13.6%
US Market
MGRC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McGrath RentCorp (MGRC) -4.8% -23.5% -32.1% -9.1% 56.5% 53.3%
US Commercial Services -1.1% -25% -26.3% -18.5% 6.8% 22.2%
US Market -1.1% -17.8% -22.5% -13.6% 4.9% 16.3%
1 Year Return vs Industry and Market
  • MGRC outperformed the Commercial Services industry which returned -18.5% over the past year.
  • MGRC outperformed the Market in United States of America which returned -13.6% over the past year.
Price Volatility
MGRC
Industry
5yr Volatility vs Market

MGRC Value

 Is McGrath RentCorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McGrath RentCorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McGrath RentCorp.

NasdaqGS:MGRC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MGRC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.599 (1 + (1- 21%) (23.9%))
0.807
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.807 * 5.44%)
6.13%

Discounted Cash Flow Calculation for NasdaqGS:MGRC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for McGrath RentCorp is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:MGRC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.13%)
2020 115.72 Analyst x2 109.04
2021 134.67 Analyst x2 119.56
2022 203.00 Analyst x1 169.81
2023 247.37 Est @ 21.86% 194.97
2024 286.51 Est @ 15.82% 212.77
2025 319.74 Est @ 11.6% 223.73
2026 347.37 Est @ 8.64% 229.02
2027 370.19 Est @ 6.57% 229.97
2028 389.15 Est @ 5.12% 227.78
2029 405.13 Est @ 4.11% 223.43
Present value of next 10 years cash flows $1,940.00
NasdaqGS:MGRC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $405.13 × (1 + 1.74%) ÷ (6.13% – 1.74%)
$9,385.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,385.35 ÷ (1 + 6.13%)10
$5,176.02
NasdaqGS:MGRC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,940.00 + $5,176.02
$7,116.02
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,116.02 / 24.30
$292.89
NasdaqGS:MGRC Discount to Share Price
Calculation Result
Value per share (USD) From above. $292.89
Current discount Discount to share price of $52.25
= -1 x ($52.25 - $292.89) / $292.89
82.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price McGrath RentCorp is available for.
Intrinsic value
>50%
Share price is $52.25 vs Future cash flow value of $292.89
Current Discount Checks
For McGrath RentCorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • McGrath RentCorp's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • McGrath RentCorp's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McGrath RentCorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McGrath RentCorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MGRC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.99
NasdaqGS:MGRC Share Price ** NasdaqGS (2020-04-02) in USD $52.25
United States of America Commercial Services Industry PE Ratio Median Figure of 52 Publicly-Listed Commercial Services Companies 19.13x
United States of America Market PE Ratio Median Figure of 2,943 Publicly-Listed Companies 12.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McGrath RentCorp.

NasdaqGS:MGRC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MGRC Share Price ÷ EPS (both in USD)

= 52.25 ÷ 3.99

13.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McGrath RentCorp is good value based on earnings compared to the US Commercial Services industry average.
  • McGrath RentCorp is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does McGrath RentCorp's expected growth come at a high price?
Raw Data
NasdaqGS:MGRC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
4.4%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 35 Publicly-Listed Commercial Services Companies 1.26x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.95x

*Line of best fit is calculated by linear regression .

NasdaqGS:MGRC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.09x ÷ 4.4%

3.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McGrath RentCorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on McGrath RentCorp's assets?
Raw Data
NasdaqGS:MGRC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $26.10
NasdaqGS:MGRC Share Price * NasdaqGS (2020-04-02) in USD $52.25
United States of America Commercial Services Industry PB Ratio Median Figure of 86 Publicly-Listed Commercial Services Companies 1.19x
United States of America Market PB Ratio Median Figure of 5,140 Publicly-Listed Companies 1.25x
NasdaqGS:MGRC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MGRC Share Price ÷ Book Value per Share (both in USD)

= 52.25 ÷ 26.10

2x

* Primary Listing of McGrath RentCorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McGrath RentCorp is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess McGrath RentCorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. McGrath RentCorp has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGRC Future Performance

 How is McGrath RentCorp expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McGrath RentCorp expected to grow at an attractive rate?
  • McGrath RentCorp's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • McGrath RentCorp's earnings growth is positive but not above the United States of America market average.
  • McGrath RentCorp's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MGRC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MGRC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 4.4%
NasdaqGS:MGRC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.5%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MGRC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MGRC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 640 1
2023-12-31 624 1
2022-12-31 611 215 111 1
2021-12-31 598 194 103 3
2020-12-31 567 179 93 3
2020-04-02
NasdaqGS:MGRC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 570 188 97
2019-09-30 556 183 95
2019-06-30 526 181 87
2019-03-31 515 158 83
2018-12-31 498 143 79
2018-09-30 487 138 173
2018-06-30 480 127 165
2018-03-31 472 128 160
2017-12-31 462 122 154
2017-09-30 445 117 46
2017-06-30 432 118 42
2017-03-31 425 127 40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McGrath RentCorp's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • McGrath RentCorp's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MGRC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from McGrath RentCorp Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGRC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 4.24 4.24 4.24 1.00
2021-12-31 4.10 4.50 3.75 3.00
2020-12-31 3.71 4.06 3.11 3.00
2020-04-02
NasdaqGS:MGRC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.99
2019-09-30 3.91
2019-06-30 3.59
2019-03-31 3.45
2018-12-31 3.29
2018-09-30 7.17
2018-06-30 6.85
2018-03-31 6.68
2017-12-31 6.41
2017-09-30 1.92
2017-06-30 1.76
2017-03-31 1.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McGrath RentCorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess McGrath RentCorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McGrath RentCorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGRC Past Performance

  How has McGrath RentCorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McGrath RentCorp's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McGrath RentCorp has delivered over 20% year on year earnings growth in the past 5 years.
  • McGrath RentCorp's 1-year earnings growth is less than its 5-year average (21.9% vs 24.5%)
  • McGrath RentCorp's earnings growth has exceeded the US Commercial Services industry average in the past year (21.9% vs 2.5%).
Earnings and Revenue History
McGrath RentCorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McGrath RentCorp Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGRC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 570.23 96.81 124.79
2019-09-30 556.12 94.65 121.98
2019-06-30 525.71 86.97 118.67
2019-03-31 515.25 83.39 117.34
2018-12-31 498.33 79.41 115.77
2018-09-30 487.44 172.88 113.74
2018-06-30 479.68 164.86 114.00
2018-03-31 472.28 160.41 111.89
2017-12-31 462.03 153.92 111.61
2017-09-30 445.09 45.93 110.33
2017-06-30 431.70 42.04 108.04
2017-03-31 425.22 39.66 106.36
2016-12-31 424.08 38.25 104.91
2016-09-30 424.08 40.04 103.57
2016-06-30 415.13 40.78 102.37
2016-03-31 408.06 40.19 101.14
2015-12-31 404.54 40.47 99.95
2015-09-30 411.05 42.84 100.07
2015-06-30 411.03 42.97 99.27
2015-03-31 410.75 44.68 98.66
2014-12-31 408.12 45.71 96.86
2014-09-30 391.10 43.58 94.40
2014-06-30 386.92 42.41 92.59
2014-03-31 378.36 42.05 90.54
2013-12-31 379.51 43.40 88.77
2013-09-30 386.69 43.57 88.72
2013-06-30 377.28 43.45 87.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • McGrath RentCorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • McGrath RentCorp used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • McGrath RentCorp has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess McGrath RentCorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McGrath RentCorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGRC Health

 How is McGrath RentCorp's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McGrath RentCorp's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McGrath RentCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • McGrath RentCorp's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of McGrath RentCorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McGrath RentCorp Company Filings, last reported 3 months ago.

NasdaqGS:MGRC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 634.04 293.43 2.34
2019-09-30 616.72 301.47 2.29
2019-06-30 592.31 301.88 1.50
2019-03-31 580.64 289.46 1.44
2018-12-31 571.54 298.56 1.51
2018-09-30 554.55 309.01 4.40
2018-06-30 537.20 314.86 4.48
2018-03-31 530.28 300.60 4.45
2017-12-31 524.18 303.41 2.50
2017-09-30 412.78 323.12 1.37
2017-06-30 402.37 330.29 1.87
2017-03-31 396.63 323.84 1.68
2016-12-31 394.29 326.27 0.85
2016-09-30 390.60 345.29 1.09
2016-06-30 383.31 363.12 1.24
2016-03-31 380.51 365.77 1.06
2015-12-31 379.69 381.28 1.10
2015-09-30 389.46 382.11 0.76
2015-06-30 426.82 337.18 0.74
2015-03-31 425.85 320.92 0.78
2014-12-31 424.53 322.48 1.17
2014-09-30 414.52 322.28 0.77
2014-06-30 406.44 307.00 1.14
2014-03-31 401.56 288.08 1.21
2013-12-31 401.03 290.00 1.63
2013-09-30 395.69 280.90 0.65
2013-06-30 387.78 278.88 0.71
  • McGrath RentCorp's level of debt (46.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (76% vs 46.3% today).
  • Debt is well covered by operating cash flow (64.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.5x coverage).
X
Financial health checks
We assess McGrath RentCorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McGrath RentCorp has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGRC Dividends

 What is McGrath RentCorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.22%
Current annual income from McGrath RentCorp dividends. Estimated to be 3.15% next year.
If you bought $2,000 of McGrath RentCorp shares you are expected to receive $64 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McGrath RentCorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (2%).
  • McGrath RentCorp's dividend is below the markets top 25% of dividend payers in United States of America (5.56%).
Upcoming dividend payment

Purchase McGrath RentCorp before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MGRC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1943 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MGRC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.69 1.00
2021-12-31 1.65 2.00
2020-12-31 1.62 2.00
2020-04-02
NasdaqGS:MGRC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-25 1.680 2.995
2019-12-04 1.500 1.922
2019-09-19 1.500 2.124
2019-06-05 1.500 2.348
2019-02-26 1.500 2.546
2018-12-06 1.360 2.674
2018-09-20 1.360 2.630
2018-06-06 1.360 2.272
2018-02-27 1.360 2.369
2017-12-06 1.040 2.178
2017-09-20 1.040 2.277
2017-06-07 1.040 2.841
2017-02-28 1.040 3.053
2016-12-07 1.020 2.657
2016-09-21 1.020 3.091
2016-06-08 1.020 3.267
2016-05-03 1.020 3.723
2016-02-25 1.020 4.143
2015-12-09 1.000 4.034
2015-09-18 1.000 3.595
2015-06-10 1.000 3.645
2015-02-26 1.000 3.115
2014-12-10 0.980 2.969
2014-09-18 0.980 2.759
2014-06-11 0.980 2.688
2014-02-27 0.980 2.926
2013-12-10 0.960 2.553
2013-10-11 0.960 2.631
2013-06-12 0.960 2.772
2013-02-21 0.960 3.106
2012-12-21 0.940 3.212
2012-10-05 0.940 3.500
2012-06-08 0.940 3.637
2012-02-29 0.940 3.260
2011-12-06 0.920 3.048
2011-09-14 0.920 3.608
2011-06-08 0.920 3.554
2011-02-23 0.920 3.416
2010-12-10 0.900 3.446
2010-10-04 0.900 3.372
2010-06-08 0.900 4.019
2010-02-24 0.900 3.659
2009-12-11 0.880 3.989
2009-09-29 0.880 4.156
2009-06-04 0.880 4.552
2009-05-07 0.880 4.418

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of McGrath RentCorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess McGrath RentCorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McGrath RentCorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McGrath RentCorp has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGRC Management

 What is the CEO of McGrath RentCorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Hanna
COMPENSATION $2,482,289
AGE 56
TENURE AS CEO 3.2 years
CEO Bio

Mr. Joseph F. Hanna, also known as Joe, has been the Chief Executive Officer and President of McGrath RentCorp since February 23, 2017. Mr. Hanna served as Chief Operating Officer and Senior Vice President at McGrath RentCorp from June 6, 2007 to February 23, 2017. Mr. Hanna served as the Senior Vice President of Operations for McGrath RentCorp from January 7, 2005 to 2007 and served as its Vice President of Operations from January 2003 to January 7, 2005. He has extensive sales and operations experience, including 12 years at SMC Corporation of America (a subsidiary of SMC Corporation, Tokyo, Japan) where he served as Director of Sales and Operations for Western United States. He served as a Captain in the United States Army. He has been a Director of McGrath Rentcorp since February 23, 2017. Mr. Hanna holds a B.S. in Electrical Engineering from the United States Military Academy, West Point, New York.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Joe's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the McGrath RentCorp management team in years:

10.8
Average Tenure
54
Average Age
  • The average tenure for the McGrath RentCorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Joe Hanna

TITLE
President
COMPENSATION
$2M
AGE
56
TENURE
3.2 yrs

Keith Pratt

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
56
TENURE
14.1 yrs

Philip Hawkins

TITLE
VP and Division Manager of Mobile Modular & Enviroplex
COMPENSATION
$729K
AGE
43
TENURE
12.8 yrs

Kristina Van Trease-Whitney

TITLE
VP & Division Manager of Adler Tank Rentals
COMPENSATION
$698K
AGE
49
TENURE
10.8 yrs

John Skenesky

TITLE
VP & Division Manager of TRS-RenTelco
COMPENSATION
$616K
AGE
52
TENURE
8.4 yrs

David Whitney

TITLE
VP, Controller & Principal Accounting Officer
AGE
54
TENURE
14.1 yrs

Melodie Craft

TITLE
Vice President of Legal Affairs & Risk Management
AGE
44
TENURE
2.3 yrs

Kay Dashner

TITLE
VP of Human Resources & Secretary
AGE
60
TENURE
15.3 yrs

Dennis Kakures

TITLE
Consultant
COMPENSATION
$2M
AGE
62
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the McGrath RentCorp board of directors in years:

8
Average Tenure
64
Average Age
  • The tenure for the McGrath RentCorp board of directors is about average.
Board of Directors

Ron Zech

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$205K
AGE
75
TENURE
10.8 yrs

Joe Hanna

TITLE
President
COMPENSATION
$2M
AGE
56
TENURE
3.2 yrs

Dennis Stradford

TITLE
Independent Director
COMPENSATION
$177K
AGE
72
TENURE
18.3 yrs

William Dawson

TITLE
Independent Director
COMPENSATION
$187K
AGE
64
TENURE
22.3 yrs

Liz Fetter

TITLE
Independent Director
COMPENSATION
$180K
AGE
61
TENURE
6.2 yrs

Rick Smith

TITLE
Independent Director
COMPENSATION
$177K
AGE
72
TENURE
9.8 yrs

Brad Shuster

TITLE
Independent Director
COMPENSATION
$175K
AGE
64
TENURE
2.8 yrs

Kim Box

TITLE
Independent Director
COMPENSATION
$94K
AGE
59
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Dec 19 Sell Ronald Zech Individual 06. Dec 19 06. Dec 19 -4,000 $77.08 $-308,320
12. Nov 19 Sell Keith Pratt Individual 07. Nov 19 07. Nov 19 -2,193 $75.25 $-165,023
06. Nov 19 Sell David Whitney Individual 05. Nov 19 05. Nov 19 -1,638 $75.58 $-123,789
06. Nov 19 Sell Elizabeth Fetter Individual 05. Nov 19 05. Nov 19 -200 $75.59 $-15,118
06. Nov 19 Sell Kristina Van Trease-Whitney Individual 05. Nov 19 05. Nov 19 -1,638 $75.58 $-123,789
17. Sep 19 Sell Kay Dashner Individual 12. Sep 19 12. Sep 19 -1,000 $68.79 $-68,789
12. Sep 19 Sell Philip Hawkins Individual 11. Sep 19 11. Sep 19 -3,310 $65.54 $-216,939
21. Aug 19 Sell Keith Pratt Individual 19. Aug 19 21. Aug 19 -3,951 $67.15 $-265,072
20. Aug 19 Sell David Whitney Individual 15. Aug 19 15. Aug 19 -504 $65.29 $-32,906
20. Aug 19 Sell Kristina Van Trease-Whitney Individual 15. Aug 19 15. Aug 19 -1,481 $65.29 $-96,474
12. Aug 19 Sell John Skenesky Individual 08. Aug 19 08. Aug 19 -1,459 $65.00 $-94,835
07. Aug 19 Sell Elizabeth Fetter Individual 06. Aug 19 06. Aug 19 -2,200 $63.56 $-139,838
05. Aug 19 Sell David Whitney Individual 01. Aug 19 01. Aug 19 -3,061 $68.87 $-210,815
05. Aug 19 Sell Kristina Van Trease-Whitney Individual 01. Aug 19 01. Aug 19 -6,716 $68.87 $-461,865
05. Aug 19 Sell Keith Pratt Individual 01. Aug 19 01. Aug 19 -2,513 $69.31 $-174,187
05. Aug 19 Sell Dennis Stradford Individual 02. Aug 19 02. Aug 19 -2,200 $68.17 $-149,969
09. May 19 Sell David Whitney Individual 07. May 19 07. May 19 -545 $63.28 $-34,489
10. May 19 Sell Kristina Van Trease-Whitney Individual 07. May 19 07. May 19 -1,078 $63.29 $-68,223
09. May 19 Sell Melodie Craft Individual 07. May 19 07. May 19 -257 $63.89 $-16,420
09. May 19 Sell Keith Pratt Individual 07. May 19 07. May 19 -962 $64.20 $-61,760
09. May 19 Sell John Lieffrig Individual 07. May 19 07. May 19 -3,731 $63.22 $-235,874
07. May 19 Sell Philip Hawkins Individual 06. May 19 06. May 19 -5,101 $63.41 $-323,451
X
Management checks
We assess McGrath RentCorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McGrath RentCorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGRC News

Simply Wall St News

Is McGrath RentCorp's (NASDAQ:MGRC) P/E Ratio Really That Good?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for McGrath RentCorp: P/E of 18.39 = $66.1 ÷ $3.59 (Based on the trailing twelve months to June 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does McGrath RentCorp's P/E Ratio Compare To Its Peers? … McGrath RentCorp shrunk earnings per share by 48% over the last year.

Simply Wall St -

Have McGrath RentCorp (NASDAQ:MGRC) Insiders Been Selling Their Stock?

Check out our latest analysis for McGrath RentCorp McGrath RentCorp Insider Transactions Over The Last Year The VP & Division Manager of Adler Tank Rentals, Kristina Van Trease-Whitney, made the biggest insider sale in the last 12 months. … NasdaqGS:MGRC Recent Insider Trading, August 8th 2019 Insider Ownership of McGrath RentCorp Many investors like to check how much of a company is owned by insiders. … Insiders sold McGrath RentCorp shares recently, but they didn't buy any.

Simply Wall St -

Does McGrath RentCorp (NASDAQ:MGRC) Have A Healthy Balance Sheet?

We note that McGrath RentCorp (NASDAQ:MGRC) does have debt on its balance sheet. … NasdaqGS:MGRC Historical Debt, August 3rd 2019 How Healthy Is McGrath RentCorp's Balance Sheet? … According to the last reported balance sheet, McGrath RentCorp had liabilities of US$99.3m due within 12 months, and liabilities of US$588.7m due beyond 12 months.

Simply Wall St -

If You Had Bought McGrath RentCorp (NASDAQ:MGRC) Stock Three Years Ago, You Could Pocket A 99% Gain Today

For example, the McGrath RentCorp (NASDAQ:MGRC) share price is up 99% in the last three years, clearly besting than the market return of around 36% (not including dividends). … As it happens, McGrath RentCorp's TSR for the last 3 years was 116%, which exceeds the share price return mentioned earlier. … A Different Perspective McGrath RentCorp shareholders have received returns of 5.2% over twelve months (even including dividends), which isn't far from the general market return.

Simply Wall St -

McGrath RentCorp (NASDAQ:MGRC) Looks Interesting, And It's About To Pay A Dividend

Check out our latest analysis for McGrath RentCorp Dividends are typically paid from company earnings. … Earnings per share have grown at a nice rate in recent times and over the last year, McGrath RentCorp paid out less than half its earnings and a bit over half its free cash flow. … See what the three analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

Simply Wall St -

Is McGrath RentCorp (NASDAQ:MGRC) Potentially Underrated?

Established dividend payer with adequate balance sheet MGRC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. … This indicates that MGRC has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. … NasdaqGS:MGRC Historical Debt, July 5th 2019 Income investors would also be happy to know that MGRC is a great dividend company, with a current yield standing at 2.4%.

Simply Wall St -

Is McGrath RentCorp’s (NASDAQ:MGRC) 11% Return On Capital Employed Good News?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for McGrath RentCorp: 0.11 = US$123m ÷ (US$1.2b - US$92m) (Based on the trailing twelve months to March 2019.) So, McGrath RentCorp has an ROCE of 11%. … Do McGrath RentCorp's Current Liabilities Skew Its ROCE? … McGrath RentCorp reports few current liabilities, which have a negligible impact on its unremarkable ROCE.

Simply Wall St -

Is McGrath RentCorp (NASDAQ:MGRC) An Attractive Dividend Stock?

Today we'll take a closer look at McGrath RentCorp (NASDAQ:MGRC) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. While McGrath RentCorp's 2.5% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Click the interactive chart for our full dividend analysis NasdaqGS:MGRC Historical Dividend Yield, June 11th 2019 Payout ratios Dividends are usually paid out of company earnings. … Conclusion To summarise, shareholders should always check that McGrath RentCorp's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is McGrath RentCorp's (NASDAQ:MGRC) Balance Sheet Strong Enough To Weather A Storm?

Does MGRC Produce Much Cash Relative To Its Debt? … At this constant level of debt, MGRC currently has US$1.4m remaining in cash and short-term investments to keep the business going. … Moreover, MGRC has produced cash from operations of US$158m in the last twelve months, leading to an operating cash to total debt ratio of 53%, meaning that MGRC’s current level of operating cash is high enough to cover debt.

Simply Wall St -

Estimating The Fair Value Of McGrath RentCorp (NASDAQ:MGRC)

by taking the expected future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

MGRC Company Info

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. McGrath RentCorp was founded in 1979 and is headquartered in Livermore, California.

Details
Name: McGrath RentCorp
MGRC
Exchange: NasdaqGS
Founded: 1979
$1,269,481,936
24,296,305
Website: http://www.mgrc.com
Address: McGrath RentCorp
5700 Las Positas Road,
Livermore,
California, 94551-7800,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MGRC Common Stock Nasdaq Global Select US USD 13. Nov 1984
Number of employees
Current staff
Staff numbers
1,099
McGrath RentCorp employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/02 23:41
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.