Company valuation ยท Industrials

MGRC: Buy with a $129.88 price target

McGrath RentCorp. More cash remains for each dollar of profit, but year-to-date profit is lower.

Model target ยท USD
$129.88
For 2027-09-16
Model rating
Buy
Reviewed 2026-09-16
Reference weekly close
$110.40
2026-09-11 ยท USD
Editorial illustration of McGrath RentCorp, Rental & Leasing Services.
Generated editorial illustration for Sharemaestro. It does not depict verified company premises or events.

Investment view

More cash remains for each dollar of profit, but year-to-date profit is lower.

Target and reference price

Target for 2027-09-16: $129.88 USD, +17.6% versus the $110.40 weekly close on 2026-09-11. Price return only; dividends, fees and tax excluded.

Price and earnings

Over 1 year (2025-09-12 to 2026-09-11), price changed -9.7% and trailing EPS changed +1.4%. A wider gap changes the earnings multiple; it does not establish fair value.

Supporting evidence

Cash after capital spending / profit: 1.4ร— for MGRC, against -3.8ร— across 8 comparable peers.

Net debt / EBITDA: 1.7ร— for MGRC, against 5.5ร— across 12 comparable peers.

Risks to the case

Across 2 completed quarters since 2025-12-31, net income was 60.7m versus 64.2m in the matching prior-year periods (USD). Check whether the latest quarter changes that direction.

Revenue changed -6.2% from the same quarter last year, through 2026-06-30. The previous quarterโ€™s year-on-year change was +1.6%.

What to monitor

Compare the next results with the trailing margin of 25.5% and the annual-history median of 23.2%. A historical median is context, not a forecast.

The latest quarterly margin changed -0.2 percentage points from a year earlier. Check sales volumes, pricing and unusual gains in the next filing.

Recheck the valuation gap alongside profitability and growth after new results. A discount alone does not establish value.

Valuation assumptions

Starting annual sales growth: -1.13%.

Net profit margin: 17.25%.

About this assessment

Review recorded on 2026-09-16. This is a dated summary of an automated company valuation. The full report includes the financial evidence, alternative scenarios and review history. Consult the latest report before using an earlier target. Automated model research, not personal investment advice. Targets depend on assumptions; returns are not guaranteed.

Evidence context