McGrath RentCorp (MGRC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+129.3%

$296.81

vs $129.44 price

Levered DCF

$98.09

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.79

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.52×	11.85×	16.75×	20.88×	21.69×	15.9×	19.18×	15.65×
P/B	2.09×	2.44×	3.13×	2.99×	2.66×	2.37×	2.93×	2.17×
P/S	2.73×	3.01×	3.52×	3.78×	3.15×	2.83×	3.25×	2.49×
EV / EBITDA	8.86×	7.14×	12.37×	10.95×	9.96×	7.86×	9.34×	7.74×
Gross margin	46.1%	47.8%	47.3%	40.8%	43.2%	46.1%	46.7%	46.8%
Operating margin	25.9%	26.8%	22.8%	23.8%	21.5%	24.6%	24.8%	23.6%
Net margin	16.6%	25.4%	21.0%	18.1%	14.5%	17.8%	17.0%	15.9%
Current ratio	1.36×	1.35×	1.36×	1.13×	1.18×	1.15×	1.19×	1.35×
Debt / equity	0.43×	0.54×	0.83×	0.53×	0.6×	0.34×	0.48×	0.52×
Interest coverage	7.97×	5.17×	4.68×	12.38×	12.67×	16.02×	11.46×	9.55×
Dividend yield	1.9%	1.7%	1.6%	1.8%	2.2%	2.5%	1.9%	2.5%
Payout ratio	30.6%	20.2%	26.1%	38.4%	47.0%	39.0%	36.7%	39.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.6%	20.6%	18.7%	14.3%	12.3%	14.9%	15.3%	13.9%
Return on invested capital	17.9%	8.4%	6.7%	7.4%	6.6%	9.2%	8.7%	7.8%
Return on assets	6.6%	10.0%	7.7%	6.7%	5.6%	7.9%	7.3%	6.5%
Free cash flow yield	8.2%	12.2%	-6.1%	-0.5%	4.1%	5.0%	0.4%	0.3%
Earnings yield	6.1%	8.4%	6.0%	4.8%	4.6%	6.3%	5.2%	6.4%
Enterprise value	$3.1B	$3.3B	$3.7B	$2.8B	$2.4B	$1.9B	$2.2B	$1.5B
Net debt / EBITDA	1.5×	1.29×	2.59×	1.64×	1.82×	0.98×	1.3×	1.49×
Cash conversion cycle (days)	48	53	-27	-38	-36	-40	-37	-36