As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of McGrath RentCorp (NASDAQ:MGRC), it is a financially-healthy , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on McGrath RentCorp here.
Outstanding track record established dividend payer
MGRC delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 31% return to shareholders, which paints a buoyant picture for the company. MGRC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that MGRC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MGRC seems to have put its debt to good use, generating operating cash levels of 0.45x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, MGRC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.
For McGrath RentCorp, I’ve put together three key aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MGRC’s future growth? Take a look at our free research report of analyst consensus for MGRC’s outlook.
- Valuation: What is MGRC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MGRC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MGRC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.