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    McGrath RentCorp (MGRC) Earnings Put Its Fair Value Story Back In Focus

    Simply Wall St·10/31/2026 15:35:26
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    McGrath RentCorp (MGRC) is back in focus after its third quarter update, which showed higher revenue and net income, along with increased earnings per share from continuing operations compared with the same period last year.

    Recent trading reflects that mix of good news and caution. McGrath RentCorp shares are around US$118.28, with the 30-day share price return of 3.44% and year-to-date share price gain of 12.40% pointing to building momentum. The 1-year total shareholder return of 11.99% shows that longer term holders have also been rewarded.

    Scan beyond McGrath RentCorp and see which peers could be setting up for the next leg of rental-led momentum with our curated 54 AI infrastructure stocks.

    After a steady run toward US$120 and fresh earnings in the bag, the real tension is simple: Is most of McGrath RentCorp’s upside already priced in, or is investors’ patience still being underpaid here?

    Most Popular Narrative: 19% Undervalued

    On Simply Wall St’s most followed narrative, McGrath RentCorp’s fair value of $145.40 sits well above the recent $118.28 close. This puts the spotlight squarely on how durable its rental growth story really is under an 8.63% discount rate.

    Ongoing Mobile Modular geographic expansion and the build out of add on services such as Mobile Modular Plus and site related work, reflected in 11% bookings growth and higher revenue per unit in Q2 2026, can continue to shift McGrath RentCorp’s mix toward higher value rental projects that support revenue and margin growth.

    See why 2 investors see McGrath RentCorp as 19% undervalued.

    Result: Fair Value of $145.40 (UNDERVALUED)

    Still, weaker utilization at Portable Storage and the sharp drop in Enviroplex revenue and EBITDA could quickly challenge the McGrath RentCorp rental growth story if those trends persist.

    Find out about the key risks to this McGrath RentCorp narrative.

    Next Steps

    Mixed signals around McGrath RentCorp’s valuation and operating trends can feel messy, so move fast to test the numbers yourself and weigh both the upside and the pressure points. Start by lining up the 4 key rewards and 3 important warning signs.

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