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MGRC (McGrath RentCorp) Piotroski F-Score : 6 (As of Mar. 19, 2025)


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What is McGrath RentCorp Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

McGrath RentCorp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for McGrath RentCorp's Piotroski F-Score or its related term are showing as below:

MGRC' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of McGrath RentCorp was 7. The lowest was 4. And the median was 6.


McGrath RentCorp Piotroski F-Score Historical Data

The historical data trend for McGrath RentCorp's Piotroski F-Score 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.

* Premium members only.

McGrath RentCorp Piotroski F-Score Chart

McGrath RentCorp Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 7.00 5.00 6.00

McGrath RentCorp Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score 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 5.00 5.00 6.00 6.00 6.00

Competitive Comparison of McGrath RentCorp's Piotroski F-Score

For the Rental & Leasing Services subindustry, McGrath RentCorp's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, McGrath RentCorp's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where McGrath RentCorp's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 22.848 + 20.618 + 149.317 + 38.949 = $231.7 Mil.
Cash Flow from Operations was 59.42 + 79.209 + 198.967 + 36.779 = $374.4 Mil.
Revenue was 187.827 + 212.611 + 266.758 + 243.746 = $910.9 Mil.
Gross Profit was 93.268 + 103.415 + 123.979 + 114.754 = $435.4 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(2217.283 + 2263.428 + 2318.335 + 2285.636 + 2277.584) / 5 = $2272.4532 Mil.
Total Assets at the begining of this year (Dec23) was $2,217.3 Mil.
Long-Term Debt & Capital Lease Obligation was $590.2 Mil.
Total Current Assets was $234.5 Mil.
Total Current Liabilities was $283.9 Mil.
Net Income was 71.657 + 30.582 + 40.366 + 32.016 = $174.6 Mil.

Revenue was 163.718 + 203.03 + 243.506 + 221.588 = $831.8 Mil.
Gross Profit was 77.367 + 94.61 + 111.534 + 110.122 = $393.6 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(1707.844 + 2061.603 + 2109.083 + 2136.671 + 2217.283) / 5 = $2046.4968 Mil.
Total Assets at the begining of last year (Dec22) was $1,707.8 Mil.
Long-Term Debt & Capital Lease Obligation was $763.0 Mil.
Total Current Assets was $243.7 Mil.
Total Current Liabilities was $279.0 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

McGrath RentCorp's current Net Income (TTM) was 231.7. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

McGrath RentCorp's current Cash Flow from Operations (TTM) was 374.4. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=231.732/2217.283
=0.10451169

ROA (Last Year)=Net Income/Total Assets (Dec22)
=174.621/1707.844
=0.10224646

McGrath RentCorp's return on assets of this year was 0.10451169. McGrath RentCorp's return on assets of last year was 0.10224646. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

McGrath RentCorp's current Net Income (TTM) was 231.7. McGrath RentCorp's current Cash Flow from Operations (TTM) was 374.4. ==> 374.4 > 231.7 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=590.208/2272.4532
=0.25972284

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=762.975/2046.4968
=0.37282003

McGrath RentCorp's gearing of this year was 0.25972284. McGrath RentCorp's gearing of last year was 0.37282003. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec24)=Total Current Assets/Total Current Liabilities
=234.453/283.879
=0.82589061

Current Ratio (Last Year: Dec23)=Total Current Assets/Total Current Liabilities
=243.67/278.951
=0.87352259

McGrath RentCorp's current ratio of this year was 0.82589061. McGrath RentCorp's current ratio of last year was 0.87352259. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

McGrath RentCorp's number of shares in issue this year was 24.588. McGrath RentCorp's number of shares in issue last year was 24.535. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=435.416/910.942
=0.47798433

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=393.633/831.842
=0.47320645

McGrath RentCorp's gross margin of this year was 0.47798433. McGrath RentCorp's gross margin of last year was 0.47320645. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=910.942/2217.283
=0.41083705

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=831.842/1707.844
=0.48707142

McGrath RentCorp's asset turnover of this year was 0.41083705. McGrath RentCorp's asset turnover of last year was 0.48707142. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

McGrath RentCorp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

McGrath RentCorp  (NAS:MGRC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


McGrath RentCorp Piotroski F-Score Related Terms

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McGrath RentCorp Business Description

Traded in Other Exchanges
N/A
Address
5700 Las Positas Road, Livermore, CA, USA, 94551-7800
McGrath RentCorp is a rental company. It is comprised of four reportable business segments: Modular building and portable storage segment (Mobile Modular), Electronic test equipment segment (TRS-RenTelco), Containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks) and Classroom manufacturing division selling modular classrooms in California (Enviroplex). The company generates its revenues majorily from the rental of its equipment on operating leases with sales of equipment occurring in the normal course of business.
Executives
Gilda Malek officer: VP, Legal General Counsel C/O MCGRATH RENTCORP, 5700 LAS POSITAS ROAD, LIVERMORE CA 94551
Joseph F Hanna director, officer: President & CEO
John P Skenesky officer: VP and Division Manager 5700 LAS POSITAS ROAD, LIVERMORE CA 94551
Kimberly Ann Box director 7157 TREELINE CT., GRANITE BAY CA 95746
Philip B Hawkins officer: VP & Division Manager 5700 LAS POSITAS ROAD, LIVERMORE CA 94551
Tara Wescott officer: Vice President Human Resources C/O MCGRATH RENTCORP, 5700 LAS POSITAS ROAD, LIVERMORE CA 94551
Trease Kristina Van officer: VP & Division Manager 5700 LAS POSITAS ROAD, LIVERMORE CA 94551
David M Whitney officer: VP, Controller, PAO 5700 LOS POSITAS ROAD, LIVERMORE CA 94551
William J Dawson director C/O CERUS CORPORATION, 2411 STANWELL DRIVE, CONCORD CA 94520
Keith E Pratt officer: Executive VP and CFO
Elizabeth A Fetter director 1400 MARINA WAY SOUTH, RICHMOND CA 94804
John Lieffrig officer: VP & Division Manager C/O MCGRATH RENTCORP, 5700 LAS POSITAS ROAD, LIVERMORE CA 94551
Dennis P Stradford director
Nicolas C Anderson director 3100 ZINFANDEL DRIVE, STE. 450, RANCHO CORDOVA CA 95670
Stuart Templeton Porter officer: VP & Division Manager C/O MCGRATH RENTCORP, 5700 LAS POSITAS ROAD, LIVERMORE CA 94551