McGrath RentCorp (MGRC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Affirm Holdings, Inc.

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OneMain Holdings, Inc.

Mr. Cooper Group, Inc.

Air Lease Corp.

PennyMac Financial Services, Inc.

Ryder System, Inc.

McGrath RentCorp

Herc Holdings, Inc.

Hertz Global Holdings, Inc.

Why is McGrath RentCorp ?

Poor long term growth as Operating profit has grown by an annual rate 11.62% of over the last 5 years

NET SALES(Q) At USD 198.54 MM has Fallen at -15.89%
OPERATING PROFIT(Q) Lowest at USD 71.34 MM
PRE-TAX PROFIT(Q) Lowest at USD 36.98 MM

With ROE of 12.65%, it has a very expensive valuation with a 2.19 Price to Book Value

Over the past year, while the stock has generated a return of 3.53%, its profits have risen by 7.4% ; the PEG ratio of the company is 2.4

Underperformed the market in the last 1 year

The stock has generated a return of 3.53% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is McGrath RentCorp for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

McGrath RentCorp

3.53%

0.47

28.90%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.52%

EBIT Growth (5y)

11.62%

EBIT to Interest (avg)

9.40

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

26.18%

Dividend Payout Ratio

30.57%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.68%

ROE (avg)

13.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.19

EV to EBIT

13.26

EV to EBITDA

9.22

EV to Capital Employed

1.83

EV to Sales

3.43

PEG Ratio

2.41

Dividend Yield

ROCE (Latest)

13.82%

ROE (Latest)

12.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 43.96 %

RAW MATERIAL COST(Y)

Fallen by 1.33% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 4.4

-10What is not working for the Company

NET SALES(Q)

At USD 198.54 MM has Fallen at -15.89%

OPERATING PROFIT(Q)

Lowest at USD 71.34 MM

PRE-TAX PROFIT(Q)

Lowest at USD 36.98 MM

NET PROFIT(Q)

Lowest at USD 27.11 MM

EPS(Q)

Lowest at USD 1.1

Here's what is working for McGrath RentCorp

Debt-Equity Ratio

Lowest at 43.96 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 4.4

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 27.82 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for McGrath RentCorp

Net Sales

At USD 198.54 MM has Fallen at -15.89%

over average net sales of the previous four periods of USD 236.06 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 36.98 MM has Fallen at -30.68%

over average net sales of the previous four periods of USD 53.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 27.11 MM has Fallen at -30.71%

over average net sales of the previous four periods of USD 39.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 71.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 36.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 27.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)