# McGrath RentCorp (MGRC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Industrials / Commercial Services & Supplies. Price $111.59, market value $2.7 billion.

## Valuation
- **P/E (trailing): 17.9×** (5-yr avg 16.7×, 3-yr avg 14.6×). McGrath RentCorp trades at 17.9× trailing earnings, close to its own five-year average of 16.7×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 16.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.9×**. Each dollar of revenue is priced at 2.9×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 8.7×**. Enterprise value is 8.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 7.7%** (5-yr avg 8.2%). Free cash flow equals 7.7% of the market value, in line with its five-year average of 8.2%. Above 5% is generally attractive.
- **Earnings yield: 5.6%**. The inverse of the P/E: 5.6% of the price is earned each year.

## Profitability
- **Gross margin: 48.5%**. McGrath RentCorp keeps 48.5% of revenue after the direct cost of what it sells.
- **Operating margin: 25.5%**. 25.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 16.6%**. 16.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.6%**. 12.6% on shareholders' equity is solid.
- **Return on invested capital: 12.2%**. Return on all capital, debt included, is 12.2%.
- **Return on assets: 6.5%**. Each dollar of assets produces 6.5% of profit.

## Growth
- **Revenue growth (1 yr): 3.7%** (3-yr 82.6%/yr, 5-yr 49.0%/yr). Revenue grew 3.7% over the last year, against 49.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -32.7%** (3-yr 10.5%/yr, 5-yr 8.8%/yr). Earnings per share fell 32.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 6.1%/yr**. Free cash flow has compounded at 6.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.24**. Debt is 0.24 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 2.94**. A Z-score of 2.94 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.76%** ($1.96 per share, trailing). McGrath RentCorp yields 1.76%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 31%** (23% of free cash flow). 31% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 3.4%/yr** (1-yr 2.1%). The dividend has grown 3.4% a year over five years.

## Price and momentum
- **Total return (1 yr): -9.7%** (YTD 7.7%, 3-mo 2.9%). The shares are down 9.7% over twelve months including dividends.
- **From 52-week high: -11.7%** (17.5% above the low). Trading 12% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 0.58** (volatility 27%). Beta of 0.58 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MGRC · Page: https://foliofundamentals.com/stocks/mgrc

Not investment advice.