McGrath RentCorp — Earnings Quality Grade F
MGRC · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 90 days, change +2 days YoY
AR growth 5.7% vs revenue growth 3.7%
Revenue 3.7%, CFFO -31.7%. Cash follows revenue
Expense Quality
Inventory -43.9% vs COGS 2.9%. Normal
CapEx growth -19.2% vs revenue 3.7%. Normal
SG&A/Gross Profit = 46.5%. Normal
Gross margin 48.2%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.64. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -4.2%. Low accruals
Cash $0.0B covers only 0% of debt $0.5B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 31% of equity
Debt/EBITDA = 1.5x. Healthy
Other assets 3.6% vs revenue 3.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.60 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25