The Panic-Proof Portfolio (Stockchase Research)
McGrath RentCorp
MGRC-Q
TOP PICK
Jul 17, 2025
Stockchase Research Editor: Michael O'Reilly
MGRC provides rentals of storage containers and modular structures, like those used for schools. Tariff uncertainty slowed container rentals last quarter, yet the company still reported 23% increase in EPS and was able to aggressively retire debt without drawing cash reserves. It trades at 18x earnings, 2.5x book and supports a ROE of 22%. We recommend setting a stop-loss at $106, looking to achieve $144 -- upside potential of 22%. Yield 1.6%
MGRC provides rentals of storage containers and modular structures, like those used for schools. Tariff uncertainty slowed container rentals last quarter, yet the company still reported 23% increase in EPS and was able to aggressively retire debt without drawing cash reserves. It trades at 18x earnings, 2.5x book and supports a ROE of 22%. We recommend setting a stop-loss at $106, looking to achieve $144 -- upside potential of 22%. Yield 1.6%
(Analysts’ price target is $144.00)