McGrath RentCorp

Valuation Analysis

About the Company

McGrath RentCorp en bref

McGrath RentCorp (MGRC) is currently trading at 103,14 € with a market capitalization of 2,5 Md €. The trailing P/E ratio stands at 18.76x, with a forward P/E of 16.86x. The 52-week range spans from 82,90 € to 112,06 €; the current price is 8% below the yearly high. Year-over-year revenue growth stands at +1.6%. The net profit margin stands at 16.38%.

💰 Dividende

McGrath RentCorp currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Avis des analystes

5 analystes évaluent McGrath RentCorp (MGRC) au consensus : None. L'objectif de cours moyen est de 126,89 €, soit un potentiel de +23.02% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 122,17 € à 130,90 €.

McGrath RentCorp : la thèse d'investissement en détail

McGrath RentCorp (MGRC) operates in the Industrials — specifically Rental & Leasing Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

The combination of a 48.07% gross margin and 21.86% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Free cash flow is positive and net margins stand at 16.38%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

Le scénario baissier

Revenue growth has slowed to just 1.6%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valorisation en contexte

The PEG ratio at 1.15 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

À surveiller

• The forward P/E of 16.86x is meaningfully below the trailing 18.76x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 23.02% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Profil de risque

The data points to relatively defensive market behavior.

Trading Data

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