# McGrath RentCorp (MGRC) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Industrials / Commercial Services. Price $132.92, market value $3.2 billion.

## Valuation
- **P/E (trailing): 20.5×** (5-yr avg 16.7×, 3-yr avg 14.6×). McGrath RentCorp trades at 20.5× trailing earnings, well above its own five-year average of 16.7×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 19.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 3.4×**. Each dollar of revenue is priced at 3.4×.
- **Price / book: 2.5×**. The shares trade at 2.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.9×**. Enterprise value is 9.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.5%** (5-yr avg 8.2%). Free cash flow equals 6.5% of the market value, below its five-year average of 8.2%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 4.9%**. The inverse of the P/E: 4.9% of the price is earned each year.

## Profitability
- **Gross margin: 48.8%**. McGrath RentCorp keeps 48.8% of revenue after the direct cost of what it sells.
- **Operating margin: 25.7%**. 25.7% 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: 12.6%**. Return on all capital, debt included, is 12.6%.
- **Return on assets: 6.8%**. Each dollar of assets produces 6.8% 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: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 3.21**. A Z-score of 3.21 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.49%** ($1.97 per share, trailing). McGrath RentCorp yields 1.49%, 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.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover McGrath RentCorp; the consensus is buy, with an average price target of $146.60 (+10% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 22.0%** (YTD 24.9%, 3-mo 8.2%). The shares are up 22.0% over twelve months including dividends.
- **From 52-week high: -0.9%** (39.9% above the low). Trading within 5% of 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): 76**. An RSI of 76 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.50** (volatility 28%). Beta of 0.50 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.