Latest Ratios: P/E Ratio 19.2x · EV/EBITDA 10.0x · ROE 13.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.1B | $2.6B | $2.7B | $2.9B | $2.4B | $2.0B | $1.6B | $1.9B | $1.3B | $1.1B | $940M |
| Enterprise Value | $3.6B | $3.1B | $3.3B | $3.7B | $2.8B | $2.4B | $1.9B | $2.2B | $1.6B | $1.4B | $1.3B |
| P/E Ratio → | 19.18 | 16.52 | 11.86 | 16.80 | 21.01 | 21.93 | 16.13 | 19.48 | 15.89 | 7.41 | 24.49 |
| P/S Ratio | 3.21 | 2.74 | 3.02 | 3.53 | 3.81 | 3.19 | 2.87 | 3.31 | 2.54 | 2.47 | 2.22 |
| P/B Ratio | 2.49 | 2.09 | 2.45 | 3.14 | 3.01 | 2.69 | 2.41 | 2.97 | 2.21 | 2.18 | 2.38 |
| P/FCF | 26.54 | 12.23 | 8.22 | — | — | 24.93 | 20.46 | 229.53 | 321.29 | 86.42 | 18.01 |
| P/OCF | 11.94 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 9.99 | 8.86 | 9.52 | 12.41 | 10.83 | 10.05 | 7.97 | 9.47 | 7.82 | 8.32 | 7.88 |
| EV / EBIT | 14.67 | 12.77 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 7.96 | 7.96 | 7.64 | 4.68 | 12.01 | 12.65 | 16.02 | 11.46 | 9.51 | 8.18 | 6.49 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 1.6% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 6.1% | 8.4% | 6.0% | 4.8% | 4.6% | 6.2% | 5.1% | 6.3% | 13.5% | 4.1% |
| FCF Yield | 3.8% | 8.2% | 12.2% | — | — | 4.0% | 4.9% | 0.4% | 0.3% | 1.2% | 5.6% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 0.2% | 0.0% | 0.0% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.6% | 1.9% | 1.9% | 1.8% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MGRC stock.
McGrath RentCorp's current P/E ratio is 19.2x. The historical average is 16.5x. This places it at the 77th percentile of its historical range.
McGrath RentCorp's current EV/EBITDA is 10.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.6x.
McGrath RentCorp's return on equity (ROE) is 13.2%. The historical average is 17.2%.
Based on historical data, McGrath RentCorp is trading at a P/E of 19.2x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
McGrath RentCorp's current dividend yield is 1.56% with a payout ratio of 30.6%.
McGrath RentCorp has 46.1% gross margin and 25.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
McGrath RentCorp's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Fleet capex and cash volatility
Metrics are mathematically derived from official filings.
Premium Multiples Priced for Stability
As reported in the valuation data, MGRC trades at 19.69 trailing P/E and 10.20 EV/EBITDA, a multiple that sits between WillScot's 8.21 EV/EBITDA and United Rentals' 11.54, implying the market prices in durability rather than growth.
A PEG of 2.23 suggests the market is not paying for earnings acceleration, since revenue growth of roughly 3.65% year over year does not justify a growth-stock multiple. The 2.49 price-to-book multiple reflects the value of the rental fleet carried on the balance sheet, which may overstate tangible asset value if goodwill and fleet useful-life assumptions are generous. Investors should weigh whether the 1.6% dividend yield adequately compensates for the flat growth profile implied by these multiples.
Margins Hold Despite Volatile Net Income
Based on MGRC's reported quarterly figures, gross margin stayed in a tight 44.5% to 48.8% band across ten quarters, while net margin swung between 9.7% and 56.0%, suggesting that headline net income is distorted by discrete items.
The stability of gross margin points to consistent pricing discipline across specialized rental segments, while operating margin ranging from 21.9% to 29.0% reflects the leverage of largely fixed overhead against shifting utilization. The 2024Q3 net margin of 56.0% is clearly non-representative and should be excluded when assessing earning power. Operating margin of roughly 25% is the more reliable anchor for underlying profitability.
Returns Compressed Below Peer Levels
According to reported ratios, MGRC's ROIC has run between 1.8% and 3.3% across recent quarters, well below the 12.4% to 18.4% range shown by United Rentals and Kforce, indicating capital-heavy operations earning thin returns.
A low ROIC in a fleet-intensive rental model is partly structural, since rental fleets carry substantial invested capital relative to operating earnings. ROE in the 2% to 4% range is depressed further by the large equity base and asset intensity. Investors should monitor whether fleet utilization improvements can lift returns, as the current spread versus cost of capital appears narrow.
Low Debt Ratios Mask Coverage Swings
Based on reported figures, MGRC's debt-to-equity fell from 0.83 in 2024Q2 to roughly 0.42 to 0.49, while interest coverage moved between 5.06 and 9.76, indicating debt service comfort that varies with quarterly earnings.
The deleveraging trend supports a more conservative balance sheet, yet a debt-to-EBITDA ratio near 6 to 7.7 times in several quarters signals that leverage relative to cash earnings remains meaningful. Interest coverage above 5 times provides a reasonable cushion, though the decline toward 5.06 in 2025Q4 warrants monitoring if earnings soften further. Refinancing risk appears manageable based on reported figures but should be tracked against debt levels of $515M to $618M.
Thin Liquidity Reliant on Credit Lines
As reported in the quarterly data, MGRC's current ratio ranged from 0.40 to 1.56 and quick ratio from 0.39 to 1.47, with cash held at only $0.3M to $9.4M, suggesting short-term obligations are met through credit facilities rather than cash reserves.
The volatility in current ratio, including readings below 1.0 in several quarters, indicates working capital that is sensitive to receivable and payable timing. Under severe stress, the minimal cash buffer would place heavy reliance on undrawn credit capacity, which is not disclosed in the supplied data and therefore cannot be verified here. Investors should examine facility availability and covenant headroom before assuming resilience.
Headline Leverage Ratios May Mislead
Based on reported figures, MGRC's low debt-to-equity of roughly 0.42 to 0.49 may understate economic leverage, since goodwill and rental fleet assets dominate the balance sheet and tangible equity appears considerably thinner than headline ratios suggest.
Using book equity as the denominator flatters the leverage picture when a large share of assets is goodwill and fleet carried at depreciated cost, so debt-to-tangible-equity would likely present a more demanding view. The reported return on equity similarly benefits from a large equity base that may include intangibles of questionable realizable value. Investors should examine debt relative to EBITDA and tangible net worth alongside headline ratios before concluding the balance sheet is conservative.