McGrath RentCorp (MGRC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of McGrath RentCorp stock $138, price $125, upside +10.0%, quality 60 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $61.54 – $132.92 · fair‑value band $97.61 – $171.89 · the $125.02 price screens below the $137.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
Follow McGrath RentCorp in your weekly email
Every Wednesday you see whether McGrath RentCorp is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
McGrath RentCorp operates as a business-to-business rental company in the United States and internationally. The company also engages in renting and selling relocatable modular buildings, portable storage containers, and electronic test equipment.
Show moreShow less
The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, 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, childcare facilities, office spaces, and various other purposes.
The Portable Storage segment offers steel containers, such as storage and office containers, to provide temporary storage solutions to construction, retail, commercial and industrial, energy and petrochemical, manufacturing, education, and healthcare markets.
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 for the aerospace, defense, electronics, industrial, research, and semiconductor industries.
This segment 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 Enviroplex segment manufactures and sells portable classrooms directly to public school districts and other educational institutions in California. The company was incorporated in 1979 and is based in Livermore, California.
Stock analysis
McGrath RentCorp (MGRC) currently trades at $125.02, while our model-based Fair Value estimate is $137.52, so the stock looks roughly fairly valued today (gap 9.1%).
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of $168.69 per share, and 11 of the 26 models we run sit above the $125.02 price.
Bear case: the Asset-Based group reads lowest at $23.53, and 15 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $97.61 (bear) to $171.89 (bull), the price of $125.02 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
McGrath RentCorp reported revenue of $944M in FY2025 versus $617M in FY2021, a compound +11.2%/yr. Reported net income was $156M in FY2025, compounding +14.9%/yr from FY2021.
Key figures
Market cap $3.1B Mid · P/E ratio 20.0 · P/S ratio 3.28 · EPS (TTM) $6.26 · Dividend yield 1.6% · Net margin 16.4% · Return on equity 12.7% · Return on assets (EBIT) 9.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 64 out of 100 (low confidence).
What moves the price
The share trades about 6% below its 52-week high and 33% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −15% fair-value upside, at 10%, MGRC screens cheaper than that median.
Fair Value models
Bear$97.61Fair Value $137.52Bull$171.89
Price $125.02 · Upside +10.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($3.69 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 9 officers or directors sold shares worth $7.3M and none bought.
SaleKeith E PrattExecutive VP and CFO20,000 shares at $127.42$2.5MNov 4, 2026
SaleJoseph F HannaDirector4× since May 4, 2026: 29,748 shares, avg. $118.09$3.5MNov 2, 2026
SaleTara WescottSVP, Chief HR Officer1,325 shares at $122.00$161,650Aug 18, 2026
SalePhilip B HawkinsPresident and CEO4,435 shares at $120.91$536,251Aug 11, 2026
SaleJohn P SkeneskyVP and Division Manager2,000 shares at $120.41$240,820Aug 11, 2026
SaleJohn LieffrigVP and Division Manager2,500 shares at $125.00$312,500Jun 26, 202610b5-1 plan
SaleGilda MalekSVP, Chief Legal Officer2× since Dec 15, 2025: 2,236 shares, avg. $111.54$249,398Jun 15, 2026
SaleDavid M WhitneySVP, Chief Accounting Officer2× since May 15, 2026: 4,322 shares, avg. $113.82$491,923Jun 10, 2026
SaleKristina Van TreaseChief Strategy Officer2× since May 15, 2026: 4,322 shares, avg. $113.82$491,923Jun 10, 2026
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.92/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+3.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.5%
Start year 2020 (pandemic). Over 10 years: +8.8% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.1%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+11.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.0%
Dividend (yield on the price)1.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.10.0% vs 14.8%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.25% → 26%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +1.0% a year for the price and +1.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (91 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The business draws strength from steady rental demand in construction and infrastructure plus a long dividend growth record, yet its main weakness remains insufficient evidence for a durable moat with sector competition likely to pressure margins.
Main risk: Cyclical delays in building activity would reduce demand for the rental fleet and hit recurring cash flows from steady construction and infrastructure needs.
McGrath has raised its dividend annually for more than 35 years, a streak matched by few public companies. Its rental fleet serves steady needs in construction and infrastructure while equipment sales fluctuate with project timing. Our models see it as undervalued, but will the rental side keep supporting that record or will cyclical delays in building activity eventually test it?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Rental & Leasing Services · 85 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "McGrath RentCorp Fair Value". https://www.fairvalue-calculator.com/stock/MGRC
Frequently asked questions
Is McGrath RentCorp (MGRC) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $137.52 versus a price of $125.02, about +10% upside (fairly valued).
What is the fair value of MGRC?
Our model-based fair value for McGrath RentCorp is $137.52 (as of Nov 7, 2026), built from audited fundamentals. The current price: $125.02.
What is the quality score of MGRC?
McGrath RentCorp has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for McGrath RentCorp (MGRC)?
Our model-based price target is the fair value of $137.52 (as of Nov 7, 2026) from 26 valuation models. Cautious scenario $97.61, optimistic scenario $171.89. It is a calculation from audited fundamentals, not an analyst target.
What is the McGrath RentCorp stock forecast for 2026?
Our models put fair value at $137.52, about +10% upside versus a price of $125.02 (fairly valued). Cautious scenario $97.61, optimistic scenario $171.89. The calculation is refreshed regularly with new filings.
What is the revenue of McGrath RentCorp (MGRC)?
McGrath RentCorp reported trailing-twelve-month revenue of about $933M (latest available figure, as of Nov 7, 2026).
Does McGrath RentCorp pay a dividend?
McGrath RentCorp currently shows a dividend yield of 1.57% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of McGrath RentCorp (MGRC) and when is the ex-dividend date?
McGrath RentCorp pays a dividend of $1.96 per share a year, a dividend yield of 1.6%. The last ex-dividend date was Oct 16, 2026. A dividend has been paid every year since at least 1990. The payout ratio is 31.3% of earnings. Free cash flow covers the dividend 4.41 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into McGrath RentCorp (MGRC)?
For today's price to be fair in a discounted-cash-flow model, McGrath RentCorp would have to grow free cash flow by +3.4 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.5 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of MGRC use?
Our models discount McGrath RentCorp at 8.5 %: a base by market capitalisation (mid), damped by beta 0.47, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For McGrath RentCorp that is +3.4 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has McGrath RentCorp (MGRC) delivered so far?
Over the past 5 years revenue at McGrath RentCorp grew +10.5 % a year. The price currently implies free-cash-flow growth of +3.4 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of McGrath RentCorp (MGRC) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into McGrath RentCorp (+3.4 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of McGrath RentCorp (MGRC)?
The free-cash-flow yield on the price is 6.90 %: that much free cash flow McGrath RentCorp produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of McGrath RentCorp (MGRC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For McGrath RentCorp it is $137.52 per share (as of Nov 7, 2026), against a price of $125.02. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is McGrath RentCorp stock overvalued or undervalued in 2026?
As of Nov 7, 2026, MGRC trades below its calculated fair value: price $125.02, fair value $137.52, a gap of about +10% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MGRC?
No. The price is what the market pays today ($125.02); the fair value is what the company's own numbers justify ($137.52). For McGrath RentCorp the two are $12.50 per share apart. That gap is exactly why we show both numbers side by side.
How much is McGrath RentCorp worth?
The market values McGrath RentCorp at about $3.1B (market capitalisation, as of Nov 7, 2026). Per share that is $125.02; our models calculate a fair value of $137.52 per share.
What do the bullish and bearish scenarios say about MGRC?
Our models span a range for McGrath RentCorp: cautious scenario $97.61, base $137.52, optimistic $171.89 per share (as of Nov 7, 2026, price $125.02). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MGRC?
McGrath RentCorp trades at a price-to-earnings ratio of 20.0 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $137.52 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2023, FY2025 ex one-offs: 18.0. Other multiples: PEG 1.1, P/B 2.5, P/S 3.3, EV/EBITDA 12.9.
What is the PEG ratio of MGRC?
The PEG ratio of McGrath RentCorp is 1.09 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of McGrath RentCorp (MGRC)?
Balance-sheet figures for McGrath RentCorp (as of Nov 7, 2026): return on equity 12.7%, debt of 0.20 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is MGRC from its 52-week high?
McGrath RentCorp trades at $125.02, about 6% below its 52-week high of $132.92 and 33% above the low of $93.97 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $137.52 is for.
Which stocks are comparable to McGrath RentCorp?
From the same area (Industrials) we also value United Rentals, Inc, Sunbelt Rentals Holdings, AerCap Holdings, U-Haul Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is McGrath RentCorp stock attractive at the current price?
The data as of Nov 7, 2026: price $125.02, calculated fair value $137.52 (+10%), Quality Score 60/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MGRC calculated?
We run McGrath RentCorp through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $137.52 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. McGrath RentCorp currently trades 9% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of McGrath RentCorp (MGRC)?
The closing price on Nov 6, 2026 was $125.02. Our model-based fair value is $137.52, about +10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with McGrath RentCorp right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of McGrath RentCorp (MGRC) come from?
Earnings per share at McGrath RentCorp grew +18.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.3 %, EBIT margin +2.9 %, tax rate +2.8 %, residual (interest, one-offs) +2.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of McGrath RentCorp
How large is the market capitalisation of McGrath RentCorp (MGRC)?
The market capitalisation of McGrath RentCorp is $3.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of McGrath RentCorp (MGRC)?
The price-to-sales ratio of McGrath RentCorp is 3.28 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of McGrath RentCorp (MGRC)?
Earnings per share at McGrath RentCorp are $6.26 (price ÷ EPS = P/E 20.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of McGrath RentCorp (MGRC)?
The dividend yield of McGrath RentCorp is 1.6% (payout 31.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of McGrath RentCorp (MGRC)?
The net margin of McGrath RentCorp is 16.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of McGrath RentCorp (MGRC)?
The return on equity (ROE) of McGrath RentCorp is 12.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of McGrath RentCorp (MGRC)?
On an EBIT basis the return on assets of McGrath RentCorp is 9.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of McGrath RentCorp (MGRC)?
The operating margin of McGrath RentCorp is 23.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at McGrath RentCorp (MGRC)?
Revenue at McGrath RentCorp is growing −6.2% versus a year earlier (3y avg +14.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at McGrath RentCorp (MGRC)?
Earnings per share at McGrath RentCorp are growing −6.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does McGrath RentCorp (MGRC) carry?
The net debt of McGrath RentCorp is $528M (fiscal year 2025, ≈ 2.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch McGrath RentCorp in the live analysis
One click puts McGrath RentCorp on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 7, 2026