McGrath RentCorp Remains Attractive, Though Upside Is Limited

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Sep. 11, 2025 6:03 PM ETMcGrath RentCorp (MGRC) StockMGRCDaniel JonesInvesting Group LeaderSummaryMcGrath RentCorp continues to show operational strength and steady growth, outperforming the S&P 500 since my initial "Buy" recommendation.Recent quarterly results highlight revenue growth in Mobile Modular and TRS-RenTelco segments, offsetting weakness in Portable Storage due to macroeconomic headwinds.Profitability metrics improved, and the company remains attractively valued on an absolute basis and relative to peers, supporting a bullish outlook.Despite some economic uncertainty and segment softness, I maintain a soft "Buy" rating given solid fundamentals and reasonable valuation.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »Sliveoak/iStock via Getty ImagesOne company that I continue to view in a positive light is McGrath RentCorp (NASDAQ:MGRC). The firm, which operates as a diversified rental company that rents out relocatable modular buildings, portable storage containers, and electronic test equipment, is intriguing to me fromMore on my IG serviceCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector.Sign up today for your two-week free trial and get a new lease on oil & gas!This article was written byDaniel Jones35.1K FollowersDaniel is an avid and active professional investor.He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You