Operating cash flow consistently outpaces net income with an OCF/NI ratio frequently exceeding 1.50, though free cash flow margins remain erratic, swinging from -49.4% in 2023Q4 to 64.1% in 2024Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 244.17M | 255.68M | 374.38M | 95.34M | 194.43M | 195.74M | 180.5M | 187.99M | 142.67M | 122.39M | 141.76M | 144.55M | 122.99M | 133.64M | 126.38M | 129.31M | 100.6M | 122.4M | 98.74M | 94.89M | 99.12M | 81.85M | 62.27M | 47.94M | 52.25M | 58.94M | 49.97M | 53.2M | 55.7M | 59.2M | 22.1M |
| Operating CF Margin % | - | 27.08% | 41.1% | 11.46% | 30.59% | 31.73% | 31.53% | 32.97% | 28.63% | 26.49% | 33.43% | 35.73% | 30.13% | 35.23% | 34.71% | 37.74% | 34.53% | 44.41% | 32.46% | 33.84% | 37.11% | 30.07% | 30.75% | 36.61% | 36.01% | 36.98% | 30.44% | 40.92% | 41.14% | 43.85% | 24.83% |
| Operating CF Growth % | 1.8% | -31.7% | 292.66% | -50.96% | -0.67% | 8.44% | -3.98% | 31.77% | 16.57% | -13.67% | -1.93% | 17.54% | -7.97% | 5.75% | -2.27% | 28.54% | -17.81% | 23.96% | 4.05% | -4.26% | 21.09% | 31.44% | 29.88% | -8.24% | -11.35% | 17.96% | -6.08% | -4.49% | -5.91% | 167.87% | -7.92% |
| Net Income | 155.13M | 156.31M | 231.73M | 174.62M | 115.14M | 89.7M | 101.98M | 96.81M | 79.41M | 153.92M | 38.25M | 40.47M | 45.71M | 43.4M | 44.78M | 49.6M | 36.48M | 33.33M | 41.2M | 42.41M | 41.08M | 40.82M | 30M | 22.69M | 12.63M | 26.68M | 27.24M | 23.8M | 23.9M | 24M | 15.5M |
| Depreciation & Amortization | 108.49M | 107.07M | 107.45M | 109.38M | 111.34M | 106.69M | 94.64M | 89.48M | 81.97M | 78.42M | 81.18M | 84.28M | 81.13M | 76.85M | 72.48M | 67.39M | 62.58M | 63.13M | 60.42M | 54M | 47.46M | 46.43M | 34.5M | 14.69M | 17.87M | 29.63M | 25.72M | 21.5M | 18.8M | 15.8M | 13.3M |
| Stock-Based Compensation | 11.5M | 11.22M | 9.5M | 8.28M | 8.01M | 7.67M | 5.55M | 5.89M | 4.11M | 3.2M | 3.09M | 3.4M | 3.85M | 3.68M | 3.84M | 5.22M | 4.23M | 3.6M | 3.77M | 3.46M | 3.13M | 44K | 57K | 112K | 37K | 551K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 32.8M | 33.45M | 38.57M | -16.95M | 4.49M | -24.78M | -18.06M | -20.38M | 12.04M | -96.63M | 7.75M | 14.45M | 19.64M | 14.64M | 21.2M | 25.82M | 12.07M | 21.88M | 29.7M | 11.53M | 5.92M | 9.71M | 9.67M | 11.16M | 2.22M | 5.33M | 6.79M | 10.6M | 8.9M | -600K | 0 |
| Other Non-Cash Items | -53M | -42.34M | -42.2M | -94.44M | -36.75M | 15K | 11K | 11K | -30.46M | 81.73M | -19.42M | -23.71M | -33.67M | -25.59M | -29.32M | -36.51M | -22.31M | -31.38M | -39.13M | -8.83M | -8.88M | -18.52M | -17.9M | -5.06M | 18.19M | -5.93M | -4.61M | -3.3M | 8.4M | 100K | -4.9M |
| Working Capital Changes | -10.76M | -10.03M | 29.31M | -85.53M | -7.8M | 16.44M | -3.62M | 16.19M | -4.39M | -98.25M | 30.91M | 25.67M | 6.32M | 20.66M | 13.41M | 17.78M | 7.55M | 31.85M | 2.78M | -7.68M | 10.42M | 3.37M | 5.95M | 4.34M | 1.29M | 2.67M | -5.17M | 2M | -4.3M | 8.8M | -1.8M |
| Change in Receivables | -14.78M | -14.25M | 6.14M | -37.78M | -31.36M | -24.4M | 3.44M | -7.32M | -15.72M | -10.47M | -3.75M | 3.88M | -15.47M | 2.46M | -3.85M | -17.94M | -7.38M | 14.12M | -15.1M | -8.42M | 3.73M | -10.7M | -8.37M | 685K | 2.31M | 600K | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 5.97M | 6.28M | 1.12M | -29.33M | 0 | -12.23M | -316K | -20.3M | -9.35M | 3.12M | 14.22M | 1.71M | -13.65M | -211K | -2.34M | 28.73M | -538K | 2.44M | -10.4M | 13.81M | 19.05M | 291.42M | 169.78M | 67.61M | 69.44M | 20.46M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 4.96M | -330K | 11.84M | -32.53M | 16.35M | 12.23M | 316K | 20.3M | -1.61M | 4.01M | 11.49M | -1.52M | 10.66M | 6.7M | -3.46M | 5.71M | 3.4M | -6.59M | -531K | -631K | 8.83M | 2.65M | 6.23M | 1.78M | -962K | -6.07M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -165.42M | -127.11M | -150.75M | -391.87M | -131.43M | -351.7M | -53M | -143.14M | -104.49M | -70.85M | -60.18M | -114.14M | -129.88M | -111.2M | -115M | -143.71M | -106.24M | -45.48M | -168.33M | -92.55M | -90.02M | -84.61M | -159.84M | -21.66M | 2.29M | -30.47M | -52.44M | -33.2M | -53M | -72.9M | -25.7M |
| Capital Expenditures | -48.43M | -44.38M | -231.46M | -273.67M | -205.31M | -116.83M | -100.05M | -179.78M | -138.74M | -109.2M | -89.59M | -140.36M | -164.94M | -144.58M | -145.97M | -172.17M | -134.89M | -72.63M | -109.38M | -114.49M | -114.17M | -116.01M | -67.05M | -36.61M | -19.41M | -48.48M | -70.82M | -49.6M | -55.2M | -72.9M | -38.3M |
| CapEx % of Revenue | 5.11% | 4.7% | 25.41% | 32.9% | 32.3% | 18.94% | 17.47% | 31.53% | 27.84% | 23.63% | 21.12% | 34.7% | 40.41% | 38.12% | 40.09% | 50.24% | 46.3% | 26.35% | 35.96% | 40.83% | 42.75% | 42.62% | 33.11% | 27.96% | 13.38% | 30.42% | 43.14% | 38.15% | 40.77% | 54% | 43.03% |
| Acquisitions | -23.79M | -23.79M | 80.7M | -462.08M | 73.88M | -283.12M | 47.05M | -7.81M | -7.54M | 38.34M | 29.41M | 26.21M | 0 | 0 | 0 | 0 | -39K | -2.1M | -88.3M | -3.76M | 0 | 0 | -120.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -93.21M | -58.95M | 0 | 343.88M | 0 | 48.25M | 0 | 44.45M | 41.79M | 38.34M | 29.41M | 26.21M | 35.06M | 33.38M | 30.97M | 28.45M | 28.69M | 29.25M | 29.35M | 25.69M | 24.14M | 31.41M | 27.42M | 14.96M | 21.7M | 18.02M | 18.38M | 16.4M | 2.2M | 0 | 12.6M |
| Cash from Financing | -79.78M | -129.08M | -223.69M | 296.44M | -63.53M | 156.2M | -128.45M | -44.02M | -39.07M | -49.85M | -81.83M | -30.47M | 6.52M | -22.42M | -11M | 14.64M | 5.44M | -77.06M | 65.82M | 2.4M | -9.02M | 2.84M | 97.75M | -26.29M | -54.55M | -29.11M | 2.63M | -20.4M | -2.4M | 13.6M | 4.1M |
| Debt Issued (Net) | -44.6M | -75.49M | -172.56M | 349.23M | -12.72M | 203.73M | -70.69M | -5.14M | -4.87M | -22.9M | -55.07M | 58.96M | 32.48M | -12M | 5.5M | 30.86M | 18.31M | -58.17M | 107.77M | 32.17M | 2.33M | 11.34M | 104.62M | -8.26M | -48.62M | -22.74M | 16.58M | 13.3M | 15M | 28.2M | 16.8M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -13.62M | 0 | 0 | 0 | 37K | -61.8M | 1.73M | 15.07M | 5.59M | 5.05M | 7.51M | 1.1M | -23.52M | -13.48M | 3.06M | 3.28M | 3.59M | -8.18M | 3.49M | 1.21M | -7.28M | -27.5M | -12M | -9.9M | -8.6M |
| Dividends Paid | -48.31M | -47.9M | -46.76M | -45.56M | -44.27M | -42.18M | -39.77M | -35.54M | -30.94M | -24.88M | -24.45M | -25.78M | -25.55M | -24.42M | -23.13M | -22.25M | -21.39M | -20.41M | -18.57M | -17.67M | -15.46M | -13.07M | -10.46M | -9.49M | -8.47M | -7.58M | -6.67M | -6.1M | -5.4M | -4.6M | -4.1M |
| Share Repurchases | -11.91M | 0 | 0 | 0 | 0 | 0 | -13.62M | 0 | 0 | 0 | 0 | -63.95M | 0 | 0 | 0 | 0 | 0 | 0 | -24.42M | -17.67M | -526K | -30K | -40K | -10.25M | 0 | 0 | -7.36M | -28.2M | -12.2M | -10.5M | -8.8M |
| Other Financing | 13.12M | -5.69M | -4.37M | -7.23M | -6.54M | -5.34M | -4.38M | -3.33M | -3.26M | -2.07M | -2.35M | -1.85M | -2.14M | -1.07M | 1.03M | 980K | 1.02M | 419K | 140K | 1.38M | 1.05M | 1.28M | 0 | -360K | -950K | 0 | 0 | -100K | 0 | -100K | 0 |
| Net Change in Cash | -1.03M | -512K | -70K | -80K | -534K | 253K | -1.1M | 834K | -993K | 1.65M | -251K | -64K | -463K | 18K | 383K | 239K | -197K | -138K | -3.77M | 4.74M | 73K | 87K | 185K | 0 | 0 | -639K | 153K | -400K | -2.4M | 13.6M | 4.1M |
| Free Cash Flow | 195.74M | 211.3M | 334.15M | -178.32M | -10.87M | 78.92M | 80.45M | 8.21M | 3.93M | 13.19M | 52.17M | 4.19M | -41.95M | -10.94M | -19.59M | -42.86M | -34.3M | 49.77M | -10.64M | -19.6M | -15.05M | -34.16M | -4.78M | 11.33M | 32.84M | 10.45M | -20.85M | 3.6M | 500K | -13.7M | -16.2M |
| FCF Margin % | 20.66% | 22.38% | 36.68% | -21.44% | -1.71% | 12.79% | 14.05% | 1.44% | 0.79% | 2.86% | 12.3% | 1.04% | -10.28% | -2.88% | -5.38% | -12.51% | -11.77% | 18.06% | -3.5% | -6.99% | -5.63% | -12.55% | -2.36% | 8.65% | 22.64% | 6.56% | -12.7% | 2.77% | 0.37% | -10.15% | -18.2% |
| FCF Growth % | -17.51% | -36.76% | 287.38% | -1539.92% | -113.78% | -1.9% | 879.8% | 108.82% | -70.2% | -74.71% | 1144.04% | 110% | -283.43% | 44.14% | 54.3% | -24.96% | -168.91% | 567.9% | 45.73% | -30.25% | 55.95% | -614.49% | -142.2% | -65.5% | 214.2% | 150.13% | -679.25% | 620% | 103.65% | 15.43% | -4150% |
| FCF per Share | 7.94 | 8.58 | 13.60 | -7.27 | -0.44 | 3.22 | 3.28 | 0.33 | 0.16 | 0.54 | 2.18 | 0.16 | -1.60 | -0.42 | -0.78 | -1.73 | -1.41 | 2.09 | -0.44 | -0.77 | -0.60 | -1.35 | -0.19 | 0.46 | 1.30 | 0.42 | -0.84 | 0.13 | 0.02 | -0.45 | -0.53 |
| FCF Conversion (FCF/Net Income) | 1.26x | 1.64x | 1.62x | 0.55x | 1.69x | 2.18x | 1.77x | 1.94x | 1.80x | 0.80x | 3.71x | 3.57x | 2.69x | 3.08x | 2.82x | 2.61x | 2.76x | 3.67x | 2.40x | 2.24x | 2.41x | 2.01x | 2.08x | 2.11x | 4.14x | 2.21x | 1.83x | 2.38x | 2.33x | 2.47x | 1.43x |
| Interest Paid | 6.84M | 0 | 48.32M | 38.6M | 14.78M | 10.33M | 9.05M | 12.47M | 12.6M | 11.82M | 12.44M | 10.04M | 9.07M | 8.81M | 9.11M | 6.88M | 6.31M | 7.41M | 10.07M | 10.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 5.76M | 0 | 36.52M | 91.56M | 27.36M | 9.09M | 34.9M | 17.53M | 18.16M | 29.5M | 15.55M | 2.5M | 22.27M | 11.07M | 5.84M | 1.48M | 9.34M | 3.32M | 4.58M | 14.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Capital Expenditure Intensity
Based on reported financial statements, MGRC consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio frequently exceeding 1.50, suggesting that non-cash depreciation charges on the company's extensive rental fleet provide a substantial buffer to reported earnings quality.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash depreciation expenses. This suggests that the underlying cash-generating capacity of the rental fleet is more robust than the bottom-line net income figures might imply to a casual observer.
As reported in recent quarterly filings, MGRC's free cash flow trajectory remains highly erratic, with margins swinging from a negative 49.4% in 2023Q4 to a peak of 64.1% in 2024Q3, reflecting the lumpy nature of capital deployment and project-based revenue cycles.
The extreme variance in free cash flow margins highlights the company's sensitivity to the timing of fleet investments and large-scale asset acquisitions. Investors should monitor whether this volatility is a structural feature of the business model or a result of management's opportunistic approach to fleet expansion.
According to the provided cash flow data, MGRC's capital expenditure as a percentage of revenue has fluctuated wildly, reaching as high as 55.3% in 2024Q1, which underscores the company's heavy reliance on continuous fleet reinvestment to maintain its competitive position in specialized rental markets.
The high capital intensity suggests that the company must constantly reinvest to prevent fleet obsolescence, particularly in the technical TRS-RenTelco segment. If capital expenditures were to consistently fall below depreciation levels, it might indicate a strategic shift toward harvesting cash at the expense of long-term fleet relevance.
Based on the company's reported cash flow figures, MGRC maintains a consistent dividend payout profile, utilizing approximately $11M to $12M per quarter to return capital to shareholders, even during periods of significant capital expenditure or acquisition activity.
The commitment to steady dividend payments suggests a management philosophy focused on shareholder return stability despite the cyclical nature of the industrial rental industry. This approach appears to be supported by the company's ability to generate reliable operating cash flow, which provides the necessary liquidity to fund both dividends and essential fleet maintenance.
Quick answers to the most common questions about buying MGRC stock.
McGrath RentCorp (MGRC) generated $255.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
McGrath RentCorp (MGRC) generated $211.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
McGrath RentCorp (MGRC) spent $44.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, McGrath RentCorp (MGRC) returned $47.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.