McGrath RentCorp MGRC

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
67/100
Moderate

About McGrath RentCorp

McGrath RentCorp operates as a business-to-business rental company in the United States and internationally. The company also engages in renting and selling relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex. The Mobile Modular segment rents and sells modular buildings designed for use as classrooms, temporary … Full MGRC analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.88), demonstrating pricing resilience across cycles.
  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.90), with robust interest coverage.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.28), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
77

Where MGRC ranks in Rental & Leasing Services

McGrath RentCorp ranks #4 of 28 scored companies in Rental & Leasing Services by moat score — the top 14%. The widest moat in the group is Global Ship Lease Inc New (GSL) at 79/100.

Moat scores for companies ranked near MGRC in Rental & Leasing Services
# Company Moat score Rating
1 Global Ship Lease Inc New GSL 79/100 Strong
2 United Rentals, Inc. URI 74/100 Moderate
3 GATX Corporation GATX 68/100 Moderate
4 McGrath RentCorp MGRC 67/100 Moderate
5 FTAI Aviation Ltd. - 8.00% Fixe FTAIO 63/100 Moderate
6 FTAI Aviation Ltd. - 8.25% Fixe FTAIN 63/100 Moderate
7 FTAI Aviation Ltd. FTAI 62/100 Moderate
8 FTAI Aviation Ltd. - 9.500% Fix FTAIM 62/100 Moderate
9 PROG Holdings, Inc. PRG 62/100 Moderate

See every General Corporate company ranked by moat score →

How MGRC scores on the Corporate Default defenses

Pricing Power

Score 76 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 47 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 68 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 67 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 67 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 72 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding MGRC's moat

What is McGrath RentCorp's moat score?

McGrath RentCorp (MGRC) scores 67 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #4 of 28 scored companies in Rental & Leasing Services, the top 14%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 27 companies in Rental & Leasing Services. Its strongest defense is Pricing Power (76/100) and its weakest is Cost Advantage (47/100).

How does McGrath RentCorp compare with other Rental & Leasing Services companies?

McGrath RentCorp ranks #4 of 28 scored companies in Rental & Leasing Services by moat score. The widest moat in Rental & Leasing Services is Global Ship Lease Inc New (GSL) at 79/100. The companies ranked closest are GATX Corporation (GATX) at 68 just above it and FTAI Aviation Ltd. - 8.00% Fixe (FTAIO) at 63 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 27 companies in Rental & Leasing Services. The defenses are then weighted to produce the overall score out of 100.

Why is McGrath RentCorp scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for McGrath RentCorp?

The Corporate Default template measures 6 defenses, and MGRC scores: Pricing Power (76), Cost Advantage (47), Customer Stickiness (68), Capital Efficiency (67), Resilience (67), Scale & Market Position (72). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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