• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    A Look At McGrath RentCorp (MGRC) Valuation After CEO Succession And Board Expansion Announcement

    Simply Wall St·02/09/2026 12:21:32
    Listen to the news

    McGrath RentCorp (MGRC) is in focus after the board named Executive Vice President and COO Philip B. Hawkins as the next President and CEO, along with plans to expand the board to seven directors.

    See our latest analysis for McGrath RentCorp.

    At a share price of $119.43, McGrath RentCorp has seen a 10.25% 1 month share price return and a 16.15% 3 month share price return, while its 5 year total shareholder return of 63.85% indicates longer term compounding. This suggests that recent momentum has been building around the planned CEO transition and board expansion.

    If this leadership change has you thinking about where else solid operators might emerge, it could be a good moment to scan our 22 top founder-led companies as another source of ideas.

    With McGrath RentCorp trading at $119.43 and only a small intrinsic discount indicated, plus a roughly 23% gap to the average analyst target, the key question is simple: is there still a genuine opportunity here, or is future growth already priced in?

    Most Popular Narrative: 18.8% Undervalued

    With McGrath RentCorp last closing at $119.43 and the most followed narrative pointing to a fair value of $147, the gap between price and story is hard to ignore.

    Expanding geographic presence and entry into new end markets (e.g., data centers, healthcare, industrial) through strategic hiring and acquisitions is expected to diversify and compound revenue streams, while mitigating cyclicality and supporting long-term earnings growth.

    Read the complete narrative.

    Want to see what sits underneath that kind of revenue and earnings ambition, and how it ties into a richer profit mix and a higher implied future multiple? The full narrative lays out the growth cadence, margin path, and valuation bridge that connect today’s price to that $147 figure.

    Result: Fair Value of $147 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, softer fleet utilization and higher selling and general administrative expenses could pressure margins and may challenge the current growth and valuation story.

    Find out about the key risks to this McGrath RentCorp narrative.

    Build Your Own McGrath RentCorp Narrative

    If you see the story differently or simply prefer to test the numbers yourself, you can build a fresh narrative in just a few minutes, starting with Do it your way.

    A great starting point for your McGrath RentCorp research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    If McGrath RentCorp has sharpened your thinking, do not stop here. Use the screener to spot other opportunities that could round out your watchlist.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.