Previous Close | $119.82 |
Intrinsic Value | $0.00 |
Upside potential | -100% |
Data is not available at this time.
McGrath RentCorp operates as a diversified business-to-business rental company, primarily serving customers in North America. The company specializes in modular buildings, electronic test equipment, and liquid and solid containment tanks, catering to industries such as construction, education, healthcare, and energy. Its core revenue model is driven by leasing and rental services, supplemented by sales of used equipment, providing a steady income stream with high-margin recurring revenue. McGrath RentCorp holds a strong market position due to its extensive fleet, nationwide footprint, and reputation for reliability, enabling it to serve both short-term and long-term customer needs. The company’s diversified portfolio mitigates sector-specific risks while capitalizing on demand for flexible, cost-effective solutions in cyclical industries. Its focus on operational efficiency and customer service further strengthens its competitive edge in niche rental markets.
McGrath RentCorp reported revenue of $910.9 million for FY 2024, with net income of $231.7 million, reflecting a robust net margin of approximately 25.4%. Diluted EPS stood at $9.43, demonstrating strong profitability. Operating cash flow was $374.4 million, indicating efficient cash generation, though capital expenditures of $231.5 million suggest ongoing investments in fleet maintenance and growth. The company’s ability to convert revenue into earnings highlights disciplined cost management.
The company’s earnings power is underscored by its high-margin rental operations, which generate stable cash flows. With an operating cash flow of $374.4 million, McGrath RentCorp efficiently deploys capital, balancing reinvestment in its rental fleet with shareholder returns. The $231.5 million in capital expenditures reflects a focus on maintaining asset quality while supporting growth, ensuring long-term competitiveness in its core markets.
McGrath RentCorp maintains a solid balance sheet, with total debt of $590.2 million and cash equivalents of $807,000. The debt level is manageable given the company’s strong cash flow generation. The absence of excessive leverage supports financial flexibility, allowing for strategic investments or opportunistic share repurchases. The balance sheet structure aligns with the capital-intensive nature of the rental business.
The company has demonstrated consistent growth, supported by demand for modular spaces and industrial equipment. McGrath RentCorp’s dividend policy is shareholder-friendly, with a dividend per share of $1.91, reflecting a commitment to returning capital. Future growth may hinge on expanding its rental fleet and entering adjacent markets, while maintaining a balanced approach to capital allocation.
With a diluted EPS of $9.43, McGrath RentCorp trades at a valuation reflective of its stable earnings and cash flow profile. Market expectations likely incorporate steady demand for rental solutions, though macroeconomic factors could influence near-term performance. The company’s ability to sustain margins and manage capital expenditures will be key drivers of valuation multiples.
McGrath RentCorp benefits from its diversified rental portfolio, operational scale, and strong customer relationships. The outlook remains positive, supported by demand for flexible infrastructure solutions. Strategic advantages include its asset-light model and ability to adapt to market cycles. Continued focus on efficiency and selective growth initiatives should reinforce its market position.
Company filings (10-K), investor presentations
show cash flow forecast
Fiscal year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | |
INCOME STATEMENT | ||||||||||||||||||||||||||
Revenue growth rate, % | NaN | |||||||||||||||||||||||||
Revenue, $ | NaN | |||||||||||||||||||||||||
Variable operating expenses, $m | NaN | |||||||||||||||||||||||||
Fixed operating expenses, $m | NaN | |||||||||||||||||||||||||
Total operating expenses, $m | NaN | |||||||||||||||||||||||||
Operating income, $m | NaN | |||||||||||||||||||||||||
EBITDA, $m | NaN | |||||||||||||||||||||||||
Interest expense (income), $m | NaN | |||||||||||||||||||||||||
Earnings before tax, $m | NaN | |||||||||||||||||||||||||
Tax expense, $m | NaN | |||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||
Cash and short-term investments, $m | NaN | |||||||||||||||||||||||||
Total assets, $m | NaN | |||||||||||||||||||||||||
Adjusted assets (=assets-cash), $m | NaN | |||||||||||||||||||||||||
Average production assets, $m | NaN | |||||||||||||||||||||||||
Working capital, $m | NaN | |||||||||||||||||||||||||
Total debt, $m | NaN | |||||||||||||||||||||||||
Total liabilities, $m | NaN | |||||||||||||||||||||||||
Total equity, $m | NaN | |||||||||||||||||||||||||
Debt-to-equity ratio | NaN | |||||||||||||||||||||||||
Adjusted equity ratio | NaN | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
Depreciation, amort., depletion, $m | NaN | |||||||||||||||||||||||||
Funds from operations, $m | NaN | |||||||||||||||||||||||||
Change in working capital, $m | NaN | |||||||||||||||||||||||||
Cash from operations, $m | NaN | |||||||||||||||||||||||||
Maintenance CAPEX, $m | NaN | |||||||||||||||||||||||||
New CAPEX, $m | NaN | |||||||||||||||||||||||||
Total CAPEX, $m | NaN | |||||||||||||||||||||||||
Free cash flow, $m | NaN | |||||||||||||||||||||||||
Issuance/(repurchase) of shares, $m | NaN | |||||||||||||||||||||||||
Retained Cash Flow, $m | NaN | |||||||||||||||||||||||||
Pot'l extraordinary dividend, $m | NaN | |||||||||||||||||||||||||
Cash available for distribution, $m | NaN | |||||||||||||||||||||||||
Discount rate, % | NaN | |||||||||||||||||||||||||
PV of cash for distribution, $m | NaN | |||||||||||||||||||||||||
Current shareholders' claim on cash, % | NaN |