Stock fact sheet · data as of
McGrath RentCorp (MGRC): fair value, margin of safety and Wheel Score
Industrials · Rental & Leasing Services · United States · Defensive
Is MGRC undervalued?
At 113.19 (close of 16 Oct 2026), MGRC trades 17% under the GLS average fair value of 136.29. 4 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between DDM (28.99) and DCF (283.00). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files MGRC under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for MGRC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 283.00 | +150% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 84.54 | -25% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 146.78 | +30% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 48.52 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 106.62 | -6% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 227.59 | +101% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 231.20 | +104% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 28.99 | -74% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 69.37 | -39% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -36.02 | -132% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 141.50 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
McGrath RentCorp scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability MGRC scores 5.7/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 8.9%, ROE 12.6%, ROA 6.6% - with debt at 0.43 times equity and a free-cash-flow yield of 7.6%.
The dividend yield is 1.74% at a payout ratio of 32%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Mobile Modular 67%, Trs Ren Telco 19%, Portable Storage 11% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 8.9% |
|---|---|---|---|
| GLS Moat | 5.7 / 10 | ROE | 12.6% |
| Debt / equity | 0.43 | ROA | 6.6% |
| Free-cash-flow yield | 7.6% | Payout ratio | 32% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 75: Good
With a Wheel Score of 75 - the Good band - McGrath RentCorp clears the Sunday Scan's "70 or higher" rule. The parts: Value 20/25, Health 16/20, Moat 9/15, Premium 20/20, Stability 11/20; Stability (11/20) scores lowest.
Implied volatility is 38% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 95 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 172k shares a day on a market cap of $2.8B, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 20 / 25 | 17% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 9 / 15 | moat 5.7/10 | |
| Premium | 20 / 20 | implied volatility 38% | |
| Stability | 11 / 20 | 172k shares/day, $2.8B cap, beta 0.47 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
McGrath RentCorp reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 16 Oct 2026 (0.4950 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Rental & Leasing Services
The 12 companies below are the closest to McGrath RentCorp by market cap within the Rental & Leasing Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WSC WillScot Holdings Corporation | 16.19 | 33.49 | +52% | 45Weak | $2.9B |
| EQPT EquipmentShare.com Inc. | 14.41 | 5.99 | -140% | 44Weak | $3.7B |
| CTOS Custom Truck One Source, Inc. | 9.20 | 3.02 | -205% | 52Fair | $2.1B |
| CAR Avis Budget Group, Inc. | 109.77 | - | - | 45Weak | $3.9B |
| VSTS Vestis Corporation | 13.97 | 16.38 | +15% | 45Weak | $1.8B |
| HRI Herc Holdings Inc. | 124.00 | 76.54 | -62% | 48Weak | $4.1B |
| LIME Neutron Holdings, Inc. | 27.07 | - | - | 25No options | $1.7B |
| GATX GATX Corporation | 165.09 | 146.59 | -13% | 60Fair | $5.8B |
| R Ryder System, Inc. | 237.82 | 293.38 | +19% | 78Good | $9.1B |
| WLFC Willis Lease Finance Corporation | 37.89 | 112.00 | +66% | 81Prime | $801M |
| UHAL U-Haul Holding Company | 55.92 | 13.96 | -301% | 54Fair | $9.7B |
| UHAL-B U-Haul Holding Company | 49.84 | 13.61 | -266% | 36No options | $10.9B |
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Start free See the Sunday ScanQuestions about MGRC
Is MGRC undervalued right now?
By the GLS models, moderately: at 113.19 the stock trades 17% below the average fair value of 136.29 (data as of 16 Oct 2026).
What is the Wheel Score of MGRC and what does it mean?
MGRC scores 75 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MGRC?
136.29 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does McGrath RentCorp report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does MGRC have listed options, and how liquid are they?
Yes. The nightly snapshot found 158 listed contracts with 95 open interest across all expiries and implied volatility of 38% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.