long positions on MGRC are looking long term favourable
for me, the Industrials sector has always been one of my favourites. A sector that has remained the backbone of world growth since time immemorial. Also, personally, I recognize it as a sector, in which companies are not only financially regulated, but there are many other regulations they need to meet, health and safety. Environmental Regulations, Licensing and Permits to name a few. So it's a sector where newbie companies really need to be on there A Game. Older established companies may not be the most hyperdynamic movers, but they tend to do what they do well. McGrath Rentcorp is no exception, and they have been doing what they do pretty well for the last 42 years becoming a publicly-traded company in 1986 at $6 and most every year they have demonstrated increases in their dividends.. Now I am neither a technical nor a fundamentalist. I tend to lean towards the Peter Lynch, Warren Buffet school, to buy what you understand.. Therefore, I need to know only a few simple things. Is the company well-led, is it stable, where are they located, who are their main competitors, do they have a lot of debts compared to what they make, who are the companies end users/customers, and critically are people buying the stock.
Their lastest Q4 earnings at the end of Feb was pretty good. Dividend news from late last month shows an increase of 4%. The CEO Joseph F. Hanna looks a fairly competent type, having worked for the company since 2007 in various roles, and was C.O.O prior to becoming head of the ship in 2017.. revenues reported in the last quarter was $573M with 62% made up from there Mobile Modular section, which seems to be their bread and butter business. The type of B2B trade, they undertake to see their Mobile Buildings rented out as temporary buildings to Schools as classrooms, refineries, Construction Sites, as well as extra offices for growing businesses. And appear to be a leader in California, Texas and mid-Atlantic education Markets whilst the portable storage rentals serve 21 states
Their Alder Tanker Fleet is capable of hauling both solid and liquid fuels, and have 14,000 rental units. They also have 24000 units of electrical and testing equipment, which serves both North America and overseas markets. TRS-RenTelco brought $141m in revenue.
All-round Adjusted EBITA was $241m. This 4th Quarter, compared to the previous year, shows modular down 2%, TRS-RenTelco was up 1% whilst tanker Rentals was down 18% I am not overly concerned with as most of last year may have grounded a lot of the fleet, due to lockdown restrictions and modular may have suffered a little with schools and construction also falling to the pandemic.
One interesting point I found was some illustrations regarding certain rentals
I.E a School rents a 960sq building for 24 months the capitalized building cost $27K
The rental cost £475 per month x 24 and servicing come in at $4300 total $15700. Taking into account depreciation of the building over 24 months and servicing they make a revenue of around 49%
For the last 20 weeks, the stock price has stayed well above the 20 period MA whilst the Chaikin Money Flow has remained in a buying area
Me… i really like this company it’s solid, it’s been performing well and the future looks fairly rosy without to much financial distress. Based on what they do and the capability to keep doing it, they look a very healthy company
I am buying
Their lastest Q4 earnings at the end of Feb was pretty good. Dividend news from late last month shows an increase of 4%. The CEO Joseph F. Hanna looks a fairly competent type, having worked for the company since 2007 in various roles, and was C.O.O prior to becoming head of the ship in 2017.. revenues reported in the last quarter was $573M with 62% made up from there Mobile Modular section, which seems to be their bread and butter business. The type of B2B trade, they undertake to see their Mobile Buildings rented out as temporary buildings to Schools as classrooms, refineries, Construction Sites, as well as extra offices for growing businesses. And appear to be a leader in California, Texas and mid-Atlantic education Markets whilst the portable storage rentals serve 21 states
Their Alder Tanker Fleet is capable of hauling both solid and liquid fuels, and have 14,000 rental units. They also have 24000 units of electrical and testing equipment, which serves both North America and overseas markets. TRS-RenTelco brought $141m in revenue.
All-round Adjusted EBITA was $241m. This 4th Quarter, compared to the previous year, shows modular down 2%, TRS-RenTelco was up 1% whilst tanker Rentals was down 18% I am not overly concerned with as most of last year may have grounded a lot of the fleet, due to lockdown restrictions and modular may have suffered a little with schools and construction also falling to the pandemic.
One interesting point I found was some illustrations regarding certain rentals
I.E a School rents a 960sq building for 24 months the capitalized building cost $27K
The rental cost £475 per month x 24 and servicing come in at $4300 total $15700. Taking into account depreciation of the building over 24 months and servicing they make a revenue of around 49%
For the last 20 weeks, the stock price has stayed well above the 20 period MA whilst the Chaikin Money Flow has remained in a buying area
Me… i really like this company it’s solid, it’s been performing well and the future looks fairly rosy without to much financial distress. Based on what they do and the capability to keep doing it, they look a very healthy company
I am buying
Comment:
Love this company So much.. and i have been invested for such a long time and your comment regarding regs and licencing is so true Industrials has no hiding place for weak companies