Mcgrath Rentcorp engages in the rental and sale of relocatable modular buildings, electronic test equipment, and liquid and solid containment tanks and boxes in the United States and internationally. The company was founded in 1979 and is based in Livermore, California.
MGRC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MGRC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mcgrath Rentcorp ranked in the 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 314%. In terms of the factors that were most noteworthy in this DCF analysis for MGRC, they are:
The compound growth rate in the free cash flow of Mcgrath Rentcorp over the past 5.01 years is 0.55%; that's better than 84.1% of cash flow producing equities in the Industrials sector, where it is classified.
MGRC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 28.6% of tickers in our DCF set.
Mcgrath Rentcorp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 14.18. This coverage rate is greater than that of 82.24% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CMCO, ABM, IIIN, GOGL, and KE can be thought of as valuation peers to MGRC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
On December 10, 2020, McGrath RentCorp (NASDAQ:MGRC) declared a dividend payable on January 29, 2021 to its shareholders. McGrath RentCorp also announced that shareholders on the company's books on or before January 15, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. McGrath RentCorp, which has a current dividend per share of $0.42, has an ex-dividend date scheduled for January 14, 2021. That equates to a dividend yield of 2.6% at current price levels.What Is An Ex-Dividend Date? An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. Usually, a company's ex-dividend date falls one business day before its record date. Investors should...
LIVERMORE, Calif.--(BUSINESS WIRE)--McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced the appointment of Smita Conjeevaram to the Company’s Board of Directors. Ron Zech, Chairman of McGrath RentCorp’s Board stated: “We are very pleased to welcome Smita to our Board. She is not only an accomplished leader with an extensive background as an executive in finance, she also has a global perspective and track-record of success in guidi
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period […]