DCF Tool

MGRC

McGrath Rentcorp – General Warehousing and Storage
Founded in 1979, McGrath RentCorp is a diversified business-to-business rental company providing modular buildings, electronic test equipment, portable storage and tank containment solutions across the United States and other select North American regions. The Company's rental operations consist of four divisions: Mobile Modular rents and sells modular buildings to fulfill customers' temporary and permanent classroom and office space needs; TRS-RenTelco rents and sells electronic test equipment; Adler Tank Rentals rents and sells containment solutions for hazardous and nonhazardous liquids and solids; and Mobile Modular Portable Storage provides portable storage rental solutions.
Analysis Results
Intrinsic Value $210.07
Latest Price $97.05
Relative Value 54% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 23.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 109 103
2023 135 120
2024 167 140
2025 206 163
2026 255 189
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6300 million. This corresponds to a present value of 4410 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 714 million. Adding in the terminal value gives a total present value of 5120 million.

There are presently 24.4 million outstanding shares, so the intrinsic value per share is 210.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 160,990,000
Current Cash 1,491,000
Current Liabilities 195,029,000
Current Debt 0
Non-Cash Working Capital (NCWC) -35,530,000
Change in NCWC -4,537,000
EBIT 132,421,000
Tax Provision 32,051,000
Depreciation and Amortization 106,695,000
Capital Expenditure -116,825,000
Unlevered Free Cash Flow 82,895,549
Current Assets 124,554,000
Current Cash 1,238,000
Current Liabilities 154,309,000
Current Debt 0
Non-Cash Working Capital (NCWC) -30,993,000
Change in NCWC 5,046,000
EBIT 140,753,000
Tax Provision 30,060,000
Depreciation and Amortization 94,643,000
Capital Expenditure -100,053,000
Unlevered Free Cash Flow 108,346,384
Current Assets 130,441,000
Current Cash 2,342,000
Current Liabilities 164,138,000
Current Debt 0
Non-Cash Working Capital (NCWC) -36,039,000
Change in NCWC -16,502,000
EBIT 141,372,000
Tax Provision 32,319,000
Depreciation and Amortization 89,476,000
Capital Expenditure -179,783,000
Unlevered Free Cash Flow -821,330
Current Assets 122,524,000
Current Cash 1,508,000
Current Liabilities 140,553,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,537,000
Change in NCWC 218,000
EBIT 117,481,000
Tax Provision 25,289,000
Depreciation and Amortization 81,975,000
Capital Expenditure -138,735,000
Unlevered Free Cash Flow 32,561,551
Current Assets 108,373,000
Current Cash 2,501,000
Current Liabilities 125,627,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,755,000
Change in NCWC -928,000
EBIT 94,740,000
Tax Provision -70,468,000
Depreciation and Amortization 78,416,000
Capital Expenditure -109,196,000
Unlevered Free Cash Flow 63,032,000
Current Assets 97,729,000
Current Cash 852,000
Current Liabilities 115,704,000
Current Debt 0
Non-Cash Working Capital (NCWC) -18,827,000
Change in NCWC -16,860,000
EBIT 79,259,000
Tax Provision 28,680,000
Depreciation and Amortization 81,179,000
Capital Expenditure -89,586,000
Unlevered Free Cash Flow 20,029,439
Current Assets 107,366,000
Current Cash 1,103,000
Current Liabilities 108,230,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,967,000
Change in NCWC -2,765,000
EBIT 76,957,000
Tax Provision 25,907,000
Depreciation and Amortization 84,280,000
Capital Expenditure -140,358,000
Unlevered Free Cash Flow -11,922,383
Current Assets 102,461,000
Current Cash 1,167,000
Current Liabilities 100,496,000
Current Debt 0
Non-Cash Working Capital (NCWC) 798,000
Change in NCWC 469,000
EBIT 85,360,000
Tax Provision 30,852,000
Depreciation and Amortization 81,125,000
Capital Expenditure -164,937,000
Unlevered Free Cash Flow -32,380,757
Current Assets 89,280,000
Current Cash 1,630,000
Current Liabilities 87,321,000
Current Debt 0
Non-Cash Working Capital (NCWC) 329,000
Change in NCWC -12,783,000
EBIT 80,061,000
Tax Provision 27,977,000
Depreciation and Amortization 76,849,000
Capital Expenditure -144,584,000
Unlevered Free Cash Flow -31,839,108
Current Assets 93,868,000
Current Cash 1,612,000
Current Liabilities 79,144,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,112,000
Change in NCWC 4,362,000
EBIT 82,016,000
Tax Provision 28,090,000
Depreciation and Amortization 72,476,000
Capital Expenditure -145,966,000
Unlevered Free Cash Flow -18,728,910

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.