McGrath RentCorp (MGRC) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Rental & Leasing Services
EV/EBITDA
↓
9.41
-9% vs avg
5yr avg: 10.34
30Y Low4.5·High12.4
P/FCF
↓
13.14
↓-13% vs avg
5yr avg: 15.13
30Y Low8.2·High152.9
P/B Ratio
↓
2.25
↓-16% vs avg
5yr avg: 2.68
30Y Low1.7·High3.7
ROE
↑
13.2%
↑-21% vs avg
5yr avg: 16.7%
30Y Low9%·High34%
Debt/EBITDA
↓
1.50
↓-19% vs avg
5yr avg: 1.85
30Y Low0.9·High2.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MGRC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
McGrath RentCorp trades at 17.8x earnings, roughly in line with its 5-year average of 17.6x, sitting at the 70th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a discount of 31%. On a free-cash-flow basis, the stock trades at 13.1x P/FCF, 13% below the 5-year average of 15.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.8B | $2.6B | $2.7B | $2.9B | $2.4B | $2.0B | $1.6B | $1.9B | $1.3B | $1.1B | $940M |
| Enterprise Value | $3.3B | $3.1B | $3.3B | $3.7B | $2.8B | $2.4B | $1.9B | $2.2B | $1.6B | $1.4B | $1.3B |
| P/E Ratio → | 17.80 | 16.52 | 11.86 | 16.80 | 21.01 | 21.93 | 16.13 | 19.48 | 15.89 | 7.41 | 24.49 |
| P/S Ratio | 2.94 | 2.74 | 3.02 | 3.53 | 3.81 | 3.19 | 2.87 | 3.31 | 2.54 | 2.47 | 2.22 |
| P/B Ratio | 2.25 | 2.09 | 2.45 | 3.14 | 3.01 | 2.69 | 2.41 | 2.97 | 2.21 | 2.18 | 2.38 |
| P/FCF | 13.14 | 12.23 | 8.22 | — | — | 24.93 | 20.46 | 229.53 | 321.29 | 86.42 | 18.01 |
| P/OCF | 10.86 | 10.11 | 7.34 | 30.77 | 12.45 | 10.05 | 9.12 | 10.03 | 8.86 | 9.32 | 6.63 |
P/E links to full P/E history page with 30-year chart
MGRC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
McGrath RentCorp's enterprise value stands at 9.4x EBITDA, 9% below its 5-year average of 10.3x. The Industrials sector median is 13.7x, placing the stock at a 31% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.30 | 3.68 | 4.46 | 4.48 | 3.90 | 3.28 | 3.83 | 3.13 | 3.12 | 2.98 |
| EV / EBITDA | 9.41 | 8.86 | 9.52 | 12.41 | 10.83 | 10.05 | 7.97 | 9.47 | 7.82 | 8.32 | 7.88 |
| EV / EBIT | 13.54 | 12.75 | 9.28 | 19.53 | 19.37 | 18.18 | 13.33 | 15.46 | 13.34 | 15.16 | 15.96 |
| EV / FCF | — | 14.73 | 10.02 | — | — | 30.46 | 23.32 | 266.19 | 396.84 | 109.23 | 24.25 |
MGRC Profitability
Margins and return-on-capital ratios measuring operating efficiency
McGrath RentCorp earns an operating margin of 25.9%, significantly above the Industrials sector average of 4.9%. Operating margins have expanded from 22.8% to 25.9% over the past 3 years, signaling improving operational efficiency. ROE of 13.2% is modest. ROIC of 10.5% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.1% | 46.1% | 47.8% | 47.3% | 40.8% | 43.2% | 46.1% | 46.7% | 46.8% | 44.7% | 43.4% |
| Operating Margin | 25.9% | 25.9% | 26.8% | 22.8% | 23.8% | 21.5% | 24.6% | 24.8% | 23.6% | 20.5% | 18.7% |
| Net Profit Margin | 16.6% | 16.6% | 25.4% | 21.0% | 18.1% | 14.5% | 17.8% | 17.0% | 15.9% | 33.3% | 9.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.2% | 13.2% | 22.5% | 20.1% | 15.0% | 12.7% | 15.5% | 16.1% | 14.5% | 33.5% | 9.9% |
| ROA | 6.7% | 6.7% | 10.1% | 8.8% | 6.9% | 6.2% | 7.8% | 7.6% | 6.7% | 13.4% | 3.3% |
| ROIC | 10.5% | 10.5% | 10.7% | 9.7% | 9.5% | 9.5% | 11.4% | 11.8% | 10.4% | 9.2% | 8.0% |
| ROCE | 11.3% | 11.3% | 11.5% | 10.4% | 10.0% | 10.0% | 11.8% | 12.0% | 10.6% | 8.9% | 7.3% |
MGRC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
McGrath RentCorp carries a Debt/EBITDA ratio of 1.5x, which is manageable (52% below the sector average of 3.1x). Net debt stands at $528M ($528M total debt minus $295000 cash). Interest coverage of 8.0x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.43 | 0.43 | 0.54 | 0.83 | 0.53 | 0.60 | 0.34 | 0.48 | 0.52 | 0.58 | 0.83 |
| Debt / EBITDA | 1.50 | 1.50 | 1.71 | 2.60 | 1.62 | 1.83 | 0.98 | 1.31 | 1.50 | 1.75 | 2.03 |
| Net Debt / Equity | — | 0.43 | 0.54 | 0.83 | 0.53 | 0.60 | 0.34 | 0.47 | 0.52 | 0.57 | 0.83 |
| Net Debt / EBITDA | 1.50 | 1.50 | 1.71 | 2.60 | 1.62 | 1.82 | 0.98 | 1.30 | 1.49 | 1.74 | 2.03 |
| Debt / FCF | — | 2.50 | 1.80 | — | — | 5.52 | 2.86 | 36.66 | 75.55 | 22.81 | 6.24 |
| Interest Coverage | 7.97 | 7.97 | 7.64 | 4.68 | 12.01 | 12.65 | 16.02 | 11.46 | 9.51 | 8.18 | 6.49 |
MGRC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.36x means McGrath RentCorp can comfortably meet its short-term obligations, though there is limited excess liquidity.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.35 | 1.36 | 1.13 | 1.18 | 1.15 | 1.19 | 1.35 | 1.25 | 1.25 |
| Quick Ratio | 1.31 | 1.31 | 1.26 | 1.36 | 1.13 | 1.18 | 1.15 | 1.19 | 1.35 | 1.25 | 1.25 |
| Cash Ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.01 |
| Asset Turnover | — | 0.40 | 0.39 | 0.37 | 0.37 | 0.38 | 0.44 | 0.43 | 0.41 | 0.40 | 0.37 |
| Inventory Turnover | 63.46 | 63.46 | 33.24 | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 89.63 | 87.89 | 99.77 | 97.58 | 94.38 | 78.61 | 82.00 | 88.64 | 83.64 | 83.38 |
MGRC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
McGrath RentCorp returns 1.7% to shareholders annually primarily through dividends. The payout ratio of 30.6% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 5.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 1.9% | 1.7% | 1.6% | 1.8% | 2.1% | 2.4% | 1.9% | 2.4% | 2.2% | 2.6% |
| Payout Ratio | 30.6% | 30.6% | 20.2% | 26.1% | 38.4% | 47.0% | 39.0% | 36.7% | 39.0% | 16.2% | 63.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 6.1% | 8.4% | 6.0% | 4.8% | 4.6% | 6.2% | 5.1% | 6.3% | 13.5% | 4.1% |
| FCF Yield | 7.6% | 8.2% | 12.2% | — | — | 4.0% | 4.9% | 0.4% | 0.3% | 1.2% | 5.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.7% | 1.9% | 1.7% | 1.6% | 1.8% | 2.1% | 3.2% | 1.9% | 2.4% | 2.2% | 2.6% |
| Shares Outstanding | — | $25M | $25M | $25M | $25M | $25M | $25M | $25M | $25M | $24M | $24M |
Peer Comparison
Compare MGRC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MGRCYou | $3B | 17.8 | 9.4 | 13.1 | 46.1% | 25.9% | 13.2% | 10.5% | 1.5 |
 URI | $60B | 25.0 | 10.8 | 91.3 | 35.4% | 24.7% | 28.4% | 12.4% | 2.3 |
 TREX | $4B | 22.4 | 13.9 | 31.6 | 39.2% | 22.0% | 20.2% | 16.4% | 0.7 |
 WSC | $4B | -80.7 | 9.1 | 5.7 | 46.8% | 21.4% | -5.7% | 7.4% | 4.5 |
 KFRC | $769M | 21.5 | 15.0 | 16.4 | 26.8% | 3.8% | 24.9% | 19.1% | 1.3 |
 RSG | $62B | 29.2 | 11.9 | 25.7 | 30.3% | 20.0% | 18.3% | 13.5% | 0.1 |
 GATX | $7B | 25.6 | 16.9 | — | 48.0% | 29.9% | 12.1% | 3.6% | 9.4 |
 AL | $7B | 7.0 | — | — | 59.4% | 50.5% | 13.6% | 4.2% | 7.2 |
 CAT | $431B | 49.2 | 34.5 | 42.0 | 32.3% | 16.6% | 43.5% | 15.9% | 3.2 |
 DE | $160B | 32.0 | 20.3 | 49.6 | 36.5% | 18.8% | 19.3% | 7.7% | 6.0 |
 TEX | $4B | 19.3 | 9.9 | 13.1 | 19.4% | 8.8% | 11.3% | 8.6% | 4.4 |
| Industrials Median | — | 25.9 | 13.7 | 21.0 | 32.9% | 4.9% | 8.2% | 6.3% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonMGRC — Frequently Asked Questions
Quick answers to the most common questions about buying MGRC stock.
What is McGrath RentCorp's P/E ratio?
McGrath RentCorp's current P/E ratio is 17.8x. The historical average is 16.5x. This places it at the 70th percentile of its historical range.
What is McGrath RentCorp's EV/EBITDA?
McGrath RentCorp's current EV/EBITDA is 9.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.6x.
What is McGrath RentCorp's ROE?
McGrath RentCorp's return on equity (ROE) is 13.2%. The historical average is 17.2%.
Is MGRC stock overvalued?
Based on historical data, McGrath RentCorp is trading at a P/E of 17.8x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is McGrath RentCorp's dividend yield?
McGrath RentCorp's current dividend yield is 1.72% with a payout ratio of 30.6%.
What are McGrath RentCorp's profit margins?
McGrath RentCorp has 46.1% gross margin and 25.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does McGrath RentCorp have?
McGrath RentCorp's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.