McGrath RentCorp cash flow to debt ratio of 48.44% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

McGrath RentCorp's free cash flow has decreased 36.76% from $334.15M last year to $211.30M, signaling decreasing performance

McGrath RentCorp's debt to equity ratio is 0.47, which means that the company's assets are healthy financed, signaling financial stability.

McGrath RentCorp's debt has decreased relative to shareholder equity from 0.54 last year to 0.47 today, signaling strengthened financials

McGrath RentCorp has a net debt to EBITDA ratio of 1.50x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

McGrath RentCorp's interest coverage ratio of 8.42 indicates that earnings with good margin can cover interest payments on company debt

McGrath RentCorp's profit margin has decreased (35.60%) in the last year from 25.44% to 16.38%, signaling decreasing performance

McGrath RentCorp's short-term assets of $240.19M exceed its short-term liabilities of $176.83M

McGrath RentCorp's return on assets of 6.11% is higher than the 5.00% threshold, indicating efficient asset utilization

McGrath RentCorp's return on equity of 12.44%, is lower than 15.00%, indicating bad performance

McGrath RentCorp's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

McGrath RentCorp had positive net income in 5 out of 5 years, indicating stable and consistent earnings

McGrath RentCorp has positive free cash flow, indicating the company generates cash after capital expenditures

McGrath RentCorp has a free cash flow yield of 7.18%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

McGrath RentCorp's yearly earnings has decreased 32.55% since last year from $231.73M to $156.31M, signaling decreasing performance

McGrath RentCorp's yearly revenue has increased 3.65% since last year from $910.94M to $944.24M, signaling increasing performance

ROIC 8.06% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

McGrath RentCorp's 3-year revenue CAGR of 14.10% is positive, indicating growing revenue over the past 3 years

McGrath RentCorp had revenue growth in 5 out of 5 years, indicating consistent revenue performance

McGrath RentCorp had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

McGrath RentCorp is undervalued relative to its fair value price of 130.96 based on Discounted Cash Flow model

McGrath RentCorp has an earnings yield of 5.18%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

McGrath RentCorp is overvalued relative to its fair value price of 78.34 based on EBITDA multiple model

McGrath RentCorp has an EV/EBITDA ratio of 9.90x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

McGrath RentCorp is undervalued relative to its fair value price of 171.59 based on Earnings Fair Value model

McGrath RentCorp has a PEG-ratio over 1 which is considered overvalued

McGrath RentCorp has a price-to-book ratio of 2.37x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

McGrath RentCorp has a price-to-sales ratio of 3.16x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue