MGRCMcGrath RentCorp

$113.59-4.7% 1Y

Is the price fair?

Good

Undemanding: modest expectations priced in and cheap vs its sector.

2 good, 1 neutral
What the price assumes~+1% a yearderived · Jun 30, 2026

Priced for ~1% a year FCF growth. The price demands less than its three-year revenue growth of 9% a year, expectations look modest.

Vs its own P/E rangemid-range for this companyderived

In its normal range: P/E 18.3 vs a 15.7 median over 41 quarters (+16% vs median).

Vs sector (EV/EBIT)12.4×derived · Dec 31, 2025

Sector median 23.3× across 246 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

P/E (valuation)middle of the market
FCF yieldbetter than 70% of the market

Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.

What MGRC's price assumes

McGrath RentCorp trades at 18.3× earnings against 18.3× for the median Rental & Leasing Services name, cheaper than its own group.

18.3

Trailing P/E · Rental & Leasing Services median 18.3 · cheaper than the typical name in its group

Price / sales
3.21

Price / sales · today's price, fiscal year to Dec 31, 2025

Free cash flow yield
6.9%

Free cash flow yield · Rental & Leasing Services median 10%

Growth the price implies
+1.3%

Growth the price implies · The price pays for +1.3% free cash flow growth a year for a decade; the business has delivered +9.0% a year over the last three.

Details›
Price / booktoday's price, fiscal year to Dec 31, 2025
2.45
EV / EBITtoday's price, fiscal year to Dec 31, 2025
12.4
EV / salestoday's price, fiscal year to Dec 31, 2025
3.21
Industrials median P/E440 names
26.5
Rental & Leasing Services median P/E17 names
18.3
Free cash flow, trailing twelve months
$210M
Market capitalisation
$3.03B
3-year revenue growth
+8.8%
3-year free cash flow growth
+9.0%
What the market has paid for these earnings: 41 quarters of its own multiple × $6.22 of trailing earnings per share
MethodPer share
Its own P/E history, lower quartile$77.57
Its own P/E history, median$97.82
Its own P/E history, upper quartile$114.76
52-week range$94.77 – $123.31
Today$113.59

Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.