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/MGRC
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McGrath RentCorp

McGrath RentCorp

MGRC
$118.27USD↓-2.27%-2.75 today

MARKET CAP

2.9B

P/E (TTM)

18.8x

FWD P/E

17.4x

DAY RANGE

$118 – $122

52W RANGE

$95
$128

AI Summary

Stalk
TrimMedium

MGRC is in a clear Stage 4 decline with a medium-term bearish bias confirmed by a decisive support failure. Short-term price is extended below falling EMAs on expanding volume, and rallies have been met with heavy resistance. While the long-term uptrend remains intact, current structure favors trimming into pullbacks near resistance zones.

  • ↑Q1 revenue grew 2% YoY to $199M, showing resilience
  • ↑CapEx surged to $45M from $12M, supporting geographic expansion
  • ↓Adjusted EBITDA fell 1% YoY to $74M, margin pressures persist
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

McGrath RentCorp (NASDAQ: MGRC) is a prominent player in the equipment rental and modular solutions sector, specializing in providing modular buildings and portable storage solutions across diverse industries, including education, commercial, and government. The company leverages its market position and extensive customer base to capture growth opportunities in the modular construction segment while navigating fluctuating market conditions. As the demand for modular solutions rises amidst economic recovery, McGrath is set to enhance its operational capabilities and expand its geographic footprint.

Bull says

  • ↑Q1 revenue grew 2% YoY to $199M, showing resilience
  • ↑CapEx surged to $45M from $12M, supporting geographic expansion
  • ↑Education pipeline boosted by California’s $10B facilities bond
  • ↑Returned $12M via dividends and buybacks, reflecting cash flow confidence
  • ↑High earnings yield and rising analyst revisions indicate undervaluation
  • ↑Positive rate sensitivity may benefit stock in rising-rate environment

Bear says

  • ↓Adjusted EBITDA fell 1% YoY to $74M, margin pressures persist
  • ↓Fleet utilization declined from 74.6% to 70%, signaling weaker demand
  • ↓High short interest and investor skepticism could weigh on shares
  • ↓Aggressive pricing by smaller rivals compresses rental margins
  • ↓Fuel cost spikes and geopolitical tensions risk higher operating costs
  • ↓Weak profitability and liquidity metrics suggest financial constraints

Investment themes with MGRC

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 04-30-2026neutral

Transcript signals

Bull points

  • Total company revenues increased 2% and adjusted EBITDA decreased 1% compared to the prior year first quarter.
  • We delivered rental revenue growth in each of our businesses despite some challenging market conditions.
  • our quote and booking levels were higher than a year ago, with our geographic expansion efforts and additional sales coverage contributing to these positive trends.

Bear points

  • Architecture Billings Index, or AVI, and other macro indicators of construction-related demand remained subdued.
  • Infantry center costs increased by $3.2 million as we prepared equipment to support higher shipment levels. This expense compressed rental margins to 56% down from 60% a year ago.
  • Sales revenues decreased $1.6 million to $20.9 million as a result of lower new and used sales projects during the quarter.
Read full transcript analysis ›