Bull Rankings model

McGrath RentCorp (MGRC) stock analysis

Rental & Leasing Services. Scored on the same transparent model behind the daily rankings.

★
MGRC
McGrath RentCorp · Rental & Leasing Services
46.9Score
$113.64Oct 9 close$2.8B
1Y Target$145.40Analyst consensus · 5 analysts
5Y Target$254.31Compound horizon
10Y Target$454.49Long-dated conviction
FCF-$7mTTM · 06/26
F
FCF is negative (-$7m) — cash-burning phase; acceptable only for pre-profit spec names · TTM from SEC filings (OCF − CapEx), four quarters to 06/26.
Rev-0.9%TTM YoY
D+
Revenue -0.9% — shrinking; needs a catalyst to reverse · Latest four quarters of revenue vs the four before them, from SEC filings.
D/E0.47
B+
D/E 0.47 — below the Industrials debt median (≈40th pctile)
P/S*3.0x
C+
P/S 3.0x — above the Industrials median (≈75th pctile)
PEG1.04
B+
PEG 1.04 — near fair value (1.0 is the usual benchmark)

* P/S replaces P/E — no positive earnings to divide by

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 46.9
Quality65.1
Growth30.1
Value52.6
Why this score
  • Durable high returns
Entry · Margin of safety
52-week rangeMid-range
10% off the 12-month high
Quality signals
Gross profitability31% · B+gross profit ÷ total assets — not in the score
ROIC12.1% · B+return on invested capital — leads the quality score

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Rental & Leasing Services · market cap $2.8b. 10% off the 52-week high of $125.83. 5 sell-side analysts publish a mean 1-yr target of $145.40 (implying +28% upside).
Moat
Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere.
Risk
Free cash flow is negative (-$7m) — capital raises or debt issuance likely required; dilution / leverage risk.
Horizon
1-3 yr $145.40 (5-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $254.31 — requires the platform / technology to reach commercial scale. 10 yr $454.49 — return distribution heavily skewed.

MGRC vs the Top Picks average

PillarMGRCBook avgDiff
Quality6583-18
Growth3089-59
Value5376-23

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
-13.4 over 82 daily scores
From 60.3 (Jun 22) → 46.9 (now)

One point per daily run; read From → To for the actual range.

MGRC at a glance

THE BULL RANKINGS SCORECARD46.9/ 100 · BULL SCOREPEER MEDIANQUALITY65.1GROWTH30.1VALUE52.6
PRICE IN ITS 52-WEEK RANGE$114LOW $95HIGH $126Trading at the 60th percentile of its 52-week range ($95–$126).
WHERE THIS SCORE SITS0255075100MGRC 46.9Ranks above 46% of 1,709 companies on the quality-growth score.
ONE-YEAR MOVE VS ITS BETAFLATThis stock-1%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change+0.0%
90-day change-0.9%
Forward EPS estimate$6.95

Over the last 90 days, what analysts expect MGRC to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
17
Position size
$1,932
3.9% of portfolio
Stop price
$85.23
25% below $113.64
$ at risk if stopped
$482.97
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

McGrath RentCorp (MGRC): score, valuation & FAQ

McGrath RentCorp (MGRC) is a Rental & Leasing Services company that scores 46.9 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (B+) and PEG (B+), while Rev (D+) and FCF (F) rate weaker.

Is MGRC a good stock to buy?

Bull Rankings scores MGRC 46.9 out of 100 on its quality-growth model, which is a below-average reading. That is driven by D/E (B+) and PEG (B+). A score is a quantitative screen of McGrath RentCorp's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does MGRC score 46.9 on Bull Rankings?

The score leans on quality at 65.1 out of 100, with growth the weakest pillar at 30.1 — the three combine geometrically, so a weak one cannot be papered over by a strong one. MGRC earns its highest marks on D/E (B+) and PEG (B+), and is held back by Rev (D+) and FCF (F). Each signal is graded against sector-aware thresholds rather than one absolute bar, so MGRC is measured against Rental & Leasing Services peers, not against the market as a whole.

Is MGRC overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for MGRC — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in MGRC?

Free cash flow is negative (-$7m) — capital raises or debt issuance likely required; dilution / leverage risk.

New to these metrics? See the guides and the methodology.

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