Is MCGRATH RENTCORP (MGRC) Halal?

NASDAQ Industrials United States $2.7B
✗ NOT HALAL
Confidence: 90/100
MCGRATH RENTCORP (MGRC) is Not Halal under AAOIFI Standard 21. The company's impermissible income ratio of 12.8% exceeds the 5% threshold allowed under AAOIFI. MCGRATH RENTCORP operates in the Industrials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 22.2%
/ 30%
0.0%
/ 30%
8.3%
/ 30%
12.8%
/ 5%
✗ NOT HALAL
DJIM 22.2%
/ 33%
0.0%
/ 33%
8.3%
/ 33%
12.8%
/ 5%
✗ NOT HALAL
MSCI 25.9%
/ 33%
0.0%
/ 33%
9.6%
/ 33%
12.8%
/ 5%
✗ NOT HALAL
S&P 22.2%
/ 33%
0.0%
/ 33%
8.3%
/ 33%
12.8%
/ 5%
✗ NOT HALAL
FTSE 25.9%
/ 33%
0.0%
/ 33%
9.6%
/ 50%
12.8%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
17.3
Forward: 15.6
EPS
$6.35
Dividend Yield
177.0%
Payout: 30.4%
P/B Ratio
2.2
EV/EBITDA
12.3
EV: $3.2B
Revenue
$944M
Growth: 5.3%
Beta
0.5
Low volatility
Current Ratio
1.8

Profitability

Gross Margin 48.2%
Operating Margin 28.9%
Net Margin 16.6%
Return on Equity (ROE) 13.2%
Return on Assets (ROA) 6.6%

Cash Flow & Balance Sheet

Operating Cash Flow$256M
Free Cash Flow$69M
Total Debt$515M
Debt-to-Equity42.7
Current Ratio1.8
Total Assets$2.4B

Price & Trading

Last Close$111.02
50-Day MA$111.74
200-Day MA$113.55
Avg Volume141K
Beta0.5
52-Week Range
$94.99
$128.41

About MCGRATH RENTCORP (MGRC)

CEO
Mr. Joseph F. Hanna
Employees
1,306
Sector
Industrials
Industry
Rental & Leasing Services
Country
United States
Exchange
NASDAQ
Market Cap
$2.7B
Currency
USD

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 offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, childcare facilities, office spaces, and various other purposes. The Portable Storage segment offers steel containers, such as storage and office containers, to provide temporary storage solutions to construction, retail, commercial and industrial, energy and petrochemical, manufacturing, education, and healthcare markets. The TRS-RenTelco segment rents and sells general purpose electronic test equipment, such as oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment primarily for the aerospace, defense, electronics, industrial, research, and semiconductor industries. This segment also provides communications test equipment, including network and transmission test equipment for various fiber, copper, and wireless networks to the manufacturers of communications equipment and products, electrical and communications installation contractors, field technicians, and service providers. The Enviroplex segment manufactures and sells portable classrooms directly to public school districts and other educational institutions in California. The company was incorporated in 1979 and is based in Livermore, California.

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Frequently Asked Questions

Is MCGRATH RENTCORP (MGRC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), MCGRATH RENTCORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is MCGRATH RENTCORP's debt ratio?

MCGRATH RENTCORP's debt ratio is 22.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.9%.

What are MCGRATH RENTCORP's key financial metrics?

MCGRATH RENTCORP has a market capitalization of $2.7B, trailing P/E ratio of 17.3, and revenue of $944M. The company maintains a gross margin of 48.2% and a net margin of 16.6%. Return on equity stands at 13.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.