McGrath RentCorp

Valuation Analysis

About the Company

McGrath RentCorp en bref

McGrath RentCorp (MGRC) is currently trading at 100,07 € with a market capitalization of 2,4 Md €. The trailing P/E ratio stands at 18.54x, with a forward P/E of 16.58x. The 52-week range spans from 82,55 € to 110,96 €; the current price is 9.8% below the yearly high. Year-over-year revenue growth stands at -6.2%. The net profit margin stands at 16.38%.

💰 Dividende

McGrath RentCorp pays an annual dividend of 1,70 € per share, representing a yield of 1.7%. The payout ratio stands at 31.4%.

📊 Avis des analystes

5 analystes évaluent McGrath RentCorp (MGRC) au consensus : Acheter. L'objectif de cours moyen est de 126,36 €, soit un potentiel de +26.27% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 121,67 € à 130,36 €.

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 48.52% gross margin and 23.28% 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. Wall Street consensus sits at Buy with an average price target implying roughly 26.27% upside from current levels — analyst sentiment is firmly constructive.

Le scénario baissier

Revenue is contracting at -6.2% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valorisation en contexte

The PEG ratio at 1.16 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 16.58x is meaningfully below the trailing 18.54x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 26.27% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Profil de risque

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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