McGrath RentCorp (MGRC, Financial), a prominent player in the Business Services industry, has seen a significant surge in its stock price over the past three months. The company's market cap stands at $2.53 billion, with its stock price currently at $103.28. Over the past week, the stock has gained 3.31%, and over the past three months, it has seen an impressive 11.58% gain. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of the stock is $106.65, up from $100.53 three months ago, indicating that the stock is fairly valued.
Company Overview
McGrath RentCorp operates in the Business Services industry, offering a diverse range of services through its four reportable business segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. The company primarily generates its revenue from the rental of its equipment on operating leases, with equipment sales occurring in the normal course of business. 
Profitability Analysis
McGrath RentCorp boasts a high Profitability Rank of 9/10, indicating a strong level of profitability. The company's operating margin stands at 21.67%, better than 87.12% of companies in the industry. Its ROE and ROA are 21.19% and 9.37% respectively, both outperforming the majority of industry peers. The company's ROIC is 7.46%, better than 57.06% of companies in the industry. McGrath RentCorp has consistently demonstrated profitability over the past 10 years, a testament to its robust business model and operational efficiency. 
Growth Prospects
The company's Growth Rank of 9/10 indicates strong growth potential. Over the past three and five years, the company's revenue growth rates per share have been 8.90% and 8.70% respectively. The company's future 3-year to 5-year total revenue growth rate estimate stands at 9.83%. However, the company's 3-year and 5-year EPS without NRI growth rates have been 6.10% and -3.00% respectively, with a future 3-year to 5-year EPS without NRI growth rate estimate of 10.00%. 
Major Stockholders
The top three holders of McGrath RentCorp's stock are Jim Simons (Trades, Portfolio), who holds a 0.11% share, Mario Gabelli (Trades, Portfolio), who holds a 0.09% share, and Keeley-Teton Advisors, LLC (Trades, Portfolio), who holds a 0.05% share.
Competitive Landscape
McGrath RentCorp faces competition from several companies in the Business Services industry. Its main competitors include FTAI Aviation Ltd with a market cap of $3.61 billion, Herc Holdings Inc with a market cap of $3.02 billion, and Textainer Group Holdings Ltd with a market cap of $2 billion.
Conclusion
In conclusion, McGrath RentCorp's stock has performed exceptionally well over the past three months, gaining 11.58%. The company's robust business model, high profitability, and strong growth potential make it an attractive option for value investors. However, investors should also consider the competitive landscape and the company's EPS growth rates. With its stock currently fairly valued, McGrath RentCorp presents a compelling investment opportunity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
