MGRC (McGrath RentCorp) EBIT: $241.5 Mil (TTM As of Mar. 2026)


MGRC McGrath RentCorp MGRC
90 GF Score
Price $121.79
GF Value $122.13
Valuation Fairly Valued
! 5 Warning Signs
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What is McGrath RentCorp EBIT?

McGrath RentCorp MGRC 90 EBIT is $241.5 Mil as of Mar. 2026. GuruFocus rates MGRC with a GF Score™ of 90/100 and a GF Value™ of $122.13 (Fairly Valued). The stock has 5 warning signs investors should review.

McGrath RentCorp's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $43.4 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $241.5 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. McGrath RentCorp's annualized ROC % for the quarter that ended in Mar. 2026 was 5.68%. McGrath RentCorp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 9.79%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. McGrath RentCorp's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.83%.


McGrath RentCorp  (NAS:MGRC) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

McGrath RentCorp's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=173.608 * ( 1 - 26.68% )/( (2227.523 + 2258.084)/ 2 )
=127.2893856/2242.8035
=5.68 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2357.117 - 180.997 - ( 0.295 - max(0, 291.59 - 240.187+0.295))
=2227.523

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2378.15 - 164.934 - ( 2.358 - max(0, 280.467 - 235.599+2.358))
=2258.084

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

McGrath RentCorp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=173.476/( ( (1654.39 + max(213.252, 0)) + (1675.74 + max(-47.226, 0)) )/ 2 )
=173.476/( ( 1867.642 + 1675.74 )/ 2 )
=173.476/1771.691
=9.79 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(231.865 + 8.027 + 2.8421709430404E-14) - (180.997 + 110.593 + -264.95)
=213.252

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(222.096 + 11.145 + -2.8421709430404E-14) - (164.934 + 115.533 + 0)
=-47.226

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

McGrath RentCorp's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=241.5/3535.016
=6.83 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


McGrath RentCorp EBIT Related Terms


McGrath RentCorp EBIT Historical Data

* Premium members only.

The historical data trend for McGrath RentCorp's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

McGrath RentCorp EBIT Chart

McGrath RentCorp Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 124.05 146.92 190.02 360.89 243.70

McGrath RentCorp Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.57 57.25 66.69 74.19 43.37

MGRC vs CTOS, HTZ, VSTS: EBIT Comparison

For the Rental & Leasing Services subindustry, McGrath RentCorp's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


McGrath RentCorp EV-to-EBIT vs Business Services Industry

For the Business Services industry and Industrials sector, McGrath RentCorp's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where McGrath RentCorp's EV-to-EBIT falls into.


MGRC
90GF Score
McGrath RentCorp MGRC
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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McGrath RentCorp EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $241.5 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $241.5 Mil mean?
McGrath RentCorp (MGRC) has a EBIT of $241.5 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on McGrath RentCorp.
Is McGrath RentCorp's EBIT too high?
McGrath RentCorp's current EBIT is $241.5 Mil. Overall, McGrath RentCorp has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McGrath RentCorp's EBIT compare to CTOS and HTZ?
McGrath RentCorp's EBIT of $241.5 Mil can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Business Services company?
A good EBIT depends on the Business Services industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on McGrath RentCorp. McGrath RentCorp's current EBIT is $241.5 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGrath RentCorp stock overvalued right now?
Based on GuruFocus' analysis, McGrath RentCorp (MGRC) is currently considered Fairly Valued. The stock's GF Value™ is $122.13, compared to a current price of $121.79 — trading 0.3% below its estimated fair value. The current EBIT is $241.5 Mil. McGrath RentCorp's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For McGrath RentCorp (MGRC), the current EBIT is $241.5 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is McGrath RentCorp (MGRC) Overvalued in 2026?

Based on GuruFocus' analysis, McGrath RentCorp stock appears to be undervalued. The current stock price of $121.79 is trading 0.3% below its estimated GF Value™ of $122.13. GuruFocus considers McGrath RentCorp to be Fairly Valued.

Key valuation signals for MGRC:

  • EBIT: $241.5 Mil
  • GF Value™: $122.13 vs. price of $121.79 (0.3% below fair value)
  • GF Score™: 90/100 with 5 warning signs

No single metric tells the full story. See the MGRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


McGrath RentCorp Business Description

Other Exchanges MG8:Germany
Address 5700 Las Positas Road, Livermore, CA, USA, 94551-7800
McGrath RentCorp is a diversified business-to-business rental company with three rental divisions: relocatable modular buildings, portable storage containers, and electronic test equipment. It comprises four reportable business segments, namely the Modular Building segment (Mobile Modular), which generates maximum revenue; the Portable Storage segment (Portable Storage); the Electronic Test Equipment segment (TRS-RenTelco); and its classroom manufacturing business (Enviroplex), which sells modular buildings used as classrooms in California. The company generates its revenues mainly from the rental of its equipment under operating leases, with sales of equipment occurring in the normal course of business.
90GF Score

Get the complete analysis for MGRC

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$121.79
Price
$122.13
GF Value