| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 17.8x | 17.8x | Top tier | |
Growth | 37 | -0.9% | 7.1% | Bottom tier | |
Quality | 77 | 10.1% | 4.5% | Top tier | |
Safety | 70 | 1.7x | 2.6x | Top tier | |
Capital Return | 36 | 1.78% | 2.12% | Bottom tier | |
Momentum | 49 | -1.7% | 2.9% | Around median | |
Sentiment | 33 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
McGrath RentCorp operates through a range of rental, sales, and related service activities. Mobile Modular includes modular buildings, classrooms, commercial complexes, and additional services; Portable Storage rents portable storage units; TRS RenTelco rents electronic test equipment to markets including data centers, aerospace and defense, and semiconductors; and Enviroplex executes sales projects whose revenue recognition timing is affected by site readiness, permits, and utility work. In Q2 FY2026, Mobile Modular was the largest business, with revenue of $150 million, compared with $43 million for TRS RenTelco, $24 million for Portable Storage, and $4.6 million for Enviroplex.
In Q2 FY2026, revenue was $221.1 million, down 6% year over year, while gross profit was $107.9 million, with a gross margin of approximately 48.8%. Net income was $33.7 million, equivalent to a net margin of approximately 15.2% and earnings per share of $1.37, while adjusted earnings before interest, taxes, depreciation, and amortization declined 4% to $83 million. The overall decline came despite 6% growth in rental operations revenue, as lower new equipment sales at Enviroplex and Mobile Modular offset a significant portion of the rental strength.
The business mix showed clear divergence in Q2 FY2026: TRS RenTelco rental revenue increased 17% to $32 million and rental margin improved to 48% from 44%, while Mobile Modular rental revenue grew 2% but its margin declined to 55% from 58%. At Portable Storage, rental revenue was stable at $17 million and margin declined to 80% from 83%, while Enviroplex swung to an adjusted loss before interest, taxes, depreciation, and amortization of $0.5 million from a profit of $4.3 million in the comparable period. On a last-twelve-month basis in FY2026, revenue was $932.9 million, net income was $152.8 million, and earnings per share were approximately $6.24.
Automated analysis for informational purposes only — not investment advice.
The analysts' average price target is $141.5, within a narrow range of $140 to $143, compared with a consensus rating of “Buy.” The average, lowest, and highest targets are all above the 52-week range high of $127.68, while the annual range extends to a low of $94.99; however, the 6% decline in Q2 FY2026 revenue, weakness in Portable Storage, and Enviroplex's dependence on the timing of second-half project completions remain factors that justify caution against relying solely on the consensus target. The data do not provide a published price-to-earnings ratio that can be used to compare valuation with earnings.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The strongest driver is TRS RenTelco, which increased its revenue 17% to $43 million and its adjusted earnings before interest, taxes, depreciation, and amortization 29% to $25 million in Q2 FY2026. Demand came from data centers, aerospace and defense, and semiconductors, while average utilization increased to 68.1% from 64.8%. Mobile Modular bookings also increased 11%, and its units on rent improved for four consecutive months, supported by large commercial projects and geographic expansion. These opportunities were reflected in the increase of the FY2026 capital expenditure range for rental equipment to $200–220 million.
Total revenue declined 6% to $221 million in Q2 FY2026 despite 6% growth in rental operations revenue. The primary reason was lower new equipment sales at Enviroplex and Mobile Modular and the shift in completion of several projects to the second half of the fiscal year. Enviroplex revenue fell to $4.6 million from $19.9 million, while Mobile Modular sales declined by $9.3 million to $31.2 million. Management said on July 29, 2026, that the delayed Enviroplex projects are contracted, but their completion depends on factors such as permits, foundation readiness, and utility connections.
TRS RenTelco generated total revenue of $43 million in Q2 FY2026, including $32 million from rentals and $8.7 million from sales. Rental margin improved to 48% from 44%, and sales margin increased to 66% from 47%, while adjusted earnings before interest, taxes, depreciation, and amortization reached $25 million. Utilization was 68.9% at quarter-end, the highest level since Q1 FY2021. Management believes data center construction remains in an early-to-middle stage, but it did not quantify the company's exposure to this market.
Mobile Modular utilization improved from 70.0% in Q1 to 70.6% at the end of Q2 FY2026, marking the first sequential increase since FY2022. Shipments exceeded returns for four consecutive months, while bookings increased 11% year over year and rental revenue increased 2%. However, average utilization of 70.1% remained below 73.7% a year earlier, and rental margin declined to 55% from 58% because of higher equipment preparation costs. Management described the shift as the beginning of a change in direction, while emphasizing that improvement may not be linear in every month or quarter.
Portable Storage was the weakest business in Q2 FY2026, as rental revenue remained stable at $17 million and average utilization declined to 58.3% from 61.1%. Rental margin declined to 80% from 83%, and adjusted earnings before interest, taxes, depreciation, and amortization fell 23% to $8 million. Management attributed this to weakness in small local commercial construction projects, elevated competition, fleet preparation costs, and pressure on service margins. On the July 29, 2026 call, the company did not expect a material improvement in these markets during FY2026.
The company expects FY2026 revenue of $955–985 million and adjusted earnings before interest, taxes, depreciation, and amortization of $363–375 million. On July 29, 2026, management kept the midpoints of both ranges unchanged but narrowed the ranges after the first half of the fiscal year. It expects stronger-than-estimated TRS RenTelco performance to offset Portable Storage weakness, with continued strength in Mobile Modular. For Enviroplex, management expects performance close to FY2024, when its revenue was $46 million, compared with $57 million in FY2025.
