Latest Ratios: P/E Ratio 17.8x · EV/EBITDA 9.4x · 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 | $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 → | 17.83 | 16.52 | 11.86 | 16.80 | 21.01 | 21.93 | 16.13 | 19.48 | 15.89 | 7.41 | 24.49 |
| P/S Ratio | 2.93 | 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 | 13.09 | 12.23 | 8.22 | — | — | 24.93 | 20.46 | 229.53 | 321.29 | 86.42 | 18.01 |
| P/OCF | 10.82 | 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 | 9.38 | 8.86 | 9.52 | 12.41 | 10.83 | 10.05 | 7.97 | 9.47 | 7.82 | 8.32 | 7.88 |
| EV / EBIT | 13.49 | 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 | 1.7% | 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% |
| 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% | 0.2% | 0.2% | 0.0% | 0.0% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.7% | 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
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying MGRC stock.
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.
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.
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 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.
McGrath RentCorp's current dividend yield is 1.72% 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
EPS miss and margin compression
Metrics are mathematically derived from official filings.
Margin Resilience Amid Revenue Decline
Gross margin expanded to 48.8% in 2026Q2 from 44.9% a year earlier, yet operating margin slipped to 24.1%, per the latest quarterly report, suggesting pricing power offset by cost pressures.
The gross margin improvement likely reflects favorable mix from higher-margin TRS-RenTelco and Adler Tanks segments, but the 16% YoY SG&A growth indicates that operating leverage is fading. Net margin of 15.2% remains stable, but the EPS miss of $0.48 versus consensus suggests that reported margins may not fully capture underlying earnings quality. Investors should monitor whether gross margin expansion can persist if revenue continues to contract.
Return on Capital Compresses on Thin Asset Base
ROIC fell to 2.2% in 2026Q2 from 3.3% in 2024Q3, while ROE dropped to 2.7% from 14.6% in 2024Q3, based on reported figures, indicating a sharp decline in capital efficiency.
The dramatic drop in ROE in 2024Q3 was likely driven by a one-time gain, as subsequent quarters normalized to 2-4% levels. ROIC has remained consistently low, reflecting the capital-intensive nature of the rental fleet, but the recent decline suggests that asset utilization may be weakening. The reported PPE anomaly (a drop from $1.7B to $247.8M) distorts asset turnover calculations, making it difficult to assess true capital efficiency. Investors should focus on segment-level returns to identify whether the specialized equipment segments are generating adequate returns on invested capital.
Working Capital Drag Intensifies as DSO Lengthens
DSO rose to 95 days in 2026Q2 from 85 days a year earlier, while CCC extended to 54 days from 61 days, according to the latest financials, indicating slower cash collection.
The increase in DSO suggests that customers are taking longer to pay, which may reflect a softening demand environment or a shift in revenue mix toward sales with longer payment terms. The CCC improvement from 61 to 54 days is driven by a reduction in DIO, but the persistent working capital drag of $13.1M in 2026Q2 indicates that cash conversion is not improving sustainably. The low DIO of 11 days is typical for a rental company with minimal inventory, but the high DSO warrants monitoring for potential credit quality issues.
Leverage Creeps Higher but Coverage Remains Adequate
Debt-to-EBITDA rose to 7.22x in 2026Q2 from 5.06x in 2025Q4, while interest coverage fell to 7.49x from 11.43x, based on reported figures, signaling reduced debt service comfort.
The increase in leverage is partly due to higher debt levels ($589.9M) and partly due to lower EBITDA from the EPS miss. Despite the rise, interest coverage remains above 7x, which is manageable, but the trend is unfavorable. The D/E of 0.47 is still conservative relative to peers like WSC (4.84), but the company's low cash balance ($4.4M) reduces its financial flexibility. Investors should monitor whether the company can refinance its debt at favorable rates given the rising leverage and the pending acquisition by WillScot.
Liquidity Cushion Thins to Critical Levels
Current ratio fell to 0.40 in 2026Q2 from 0.84 in 2026Q1, with cash at $4.4M, according to the latest balance sheet, indicating a severely weakened short-term liquidity position.
The current ratio below 1 suggests that current liabilities exceed current assets, which is unusual for a rental company and may indicate a data anomaly or a significant reclassification. The quick ratio of 0.39 confirms that even without inventory, liquidity is strained. This could be a temporary issue related to the timing of debt maturities or a sign of financial stress. Given the company's access to credit markets and the pending acquisition, the liquidity risk may be mitigated, but the sharp decline warrants close monitoring.
Misapplied Metric: P/E on Cyclical Earnings
The P/E of 18.37 may mislead investors because MGRC's earnings are volatile due to one-time gains and fleet sales, as seen in 2024Q3's 56% net margin, per reported data.
The P/E ratio is commonly used for MGRC, but it fails to capture the true earnings power of a rental company that relies on depreciation and asset sales. A more appropriate metric is EV/EBITDA, which at 9.62x is below the peer average, suggesting the market is pricing in lower growth or higher risk. Additionally, the P/FCF of 13.48 provides a better view of cash generation, but the recent CapEx below depreciation raises questions about fleet reinvestment. Investors should use EV/EBITDA and P/FCF in conjunction with P/E to avoid misinterpreting the impact of non-recurring items.