Latest Ratios: P/E Ratio 17.9x · 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 → | 17.89 | 16.52 | 11.86 | 16.80 | 21.01 | 21.93 | 16.13 | 19.48 | 15.89 | 7.41 | 24.49 |
| P/S Ratio | 2.95 | 2.74 | 3.02 | 3.53 | 3.81 | 3.19 | 2.87 | 3.31 | 2.54 | 2.47 | 2.22 |
| P/B Ratio | 2.26 | 2.09 | 2.45 | 3.14 | 3.01 | 2.69 | 2.41 | 2.97 | 2.21 | 2.18 | 2.38 |
| P/FCF | 13.20 | 12.23 | 8.22 | — | — | 24.93 | 20.46 | 229.53 | 321.29 | 86.42 | 18.01 |
| P/OCF | 10.91 | 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 | 9.45 | 8.86 | 9.52 | 12.41 | 10.83 | 10.05 | 7.97 | 9.47 | 7.82 | 8.32 | 7.88 |
| EV / EBIT | 13.59 | 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 |
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 | 7.97 | 7.97 | 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% | 0.0% | 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 |
Cyclical Revenue Volatility
Based on current market data, MGRC trades at a P/E of 19.42, which appears to discount the company relative to pure-play industrial peers like United Rentals, suggesting investors are applying a conglomerate discount due to the disparate nature of its modular and technical testing business segments.
The forward P/E of 19.36 implies a market expectation of moderate, stable growth rather than aggressive expansion. This valuation level warrants caution, as it may fail to fully account for the potential regulatory risks associated with the proposed acquisition by WillScot Mobile Mini.
As reported in recent financial statements, MGRC's ROIC has struggled to exceed 3.3% over the last ten quarters, indicating that the company is currently failing to generate returns on invested capital that significantly exceed its cost of capital, despite maintaining strong gross margins.
The persistent gap between high gross margins and low ROIC suggests that the company's heavy investment in a capital-intensive fleet is not yet translating into superior compounding of shareholder value. Investors should monitor whether future fleet modernization efforts can improve asset utilization and drive higher returns on capital.
According to quarterly filings, MGRC's cash conversion cycle has shown significant volatility, ranging from 44 to 68 days, which reflects the inherent difficulty in managing working capital across diverse rental segments with varying customer payment terms and inventory turnover requirements.
The recent increase in DSO to 103 days in 2026Q1 suggests a potential deterioration in customer payment efficiency that warrants further investigation. Such fluctuations in the cash conversion cycle may indicate that the company is facing increased pressure to extend credit terms to maintain market share in a competitive environment.
Based on reported figures, MGRC has maintained a disciplined balance sheet with a D/E ratio of 0.44 as of 2026Q1, which is significantly lower than the industry average and provides a substantial buffer against the cyclical downturns typical of the industrial rental sector.
The company's interest coverage ratio of 6.69 suggests that debt service remains comfortable, even during periods of revenue contraction. This conservative capital structure appears to be a strategic choice that prioritizes financial flexibility over aggressive debt-fueled growth, which may be particularly valuable given the current interest rate environment.
The P/E ratio is frequently misapplied to MGRC, as it obscures the significant impact of non-cash depreciation charges on the company's reported earnings, which often fail to reflect the true cash-generating capacity of its extensive and long-lived rental fleet assets.
Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the underlying operational performance, as these metrics neutralize the distortions caused by varying depreciation policies and capital structure choices. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its actual cash flow generation.
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 17.9x. 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 17.9x. 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 1.71% 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.