McGrath RentCorp (MGRC) Fair Value & Analysis

Industrials · US · Market cap $2.9B

A solid business, screening 12% undervalued on our models.

What matters now

• A fairly wide model range ($89.63 to $167.05) leaves room in how you read the outcome.
• Our model range runs from $89.63 (bear) to $167.05 (bull), base $133.64. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 59/100 (solid quality) with high evidence: the data supports the verdict.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range $62.07 – $126.22 · fair‑value band $89.63 – $167.05 · the $119.75 price screens below the $133.64 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

McGrath RentCorp (MGRC) currently trades at $119.75, while our model-based Fair Value estimate is $133.64, implying the stock looks roughly 11.6% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, McGrath RentCorp generated revenue of $947M at a net margin of 16.4%. Revenue grew 1.6% year over year. It earns a return on equity of 13.1%. Net debt stands at $528M. Fundamentals as of Jul 13, 2026

Our scenario range runs from $89.63 (bear case) to $167.05 (bull case); at $119.75, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 6% below its 52-week high and 27% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -21% fair-value upside, at 12%, MGRC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models ($140.30) versus Dividend Discount ($29.49). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

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. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

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Peer Group

Rental & Leasing Services · 97 stocks

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.

Valuation Multiples vs Rental & Leasing Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.