ScoreWhy is McGrath RentCorp ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.40
2
Poor long term growth as Operating profit has grown by an annual rate 10.34% of over the last 5 years
3
Flat results in Jun 25
- DIVIDEND PAYOUT RATIO(Y) Lowest at 33.19%
- OPERATING PROFIT MARGIN(Q) Lowest at 35.44 %
4
With ROE of 12.66%, it has a fair valuation with a 2.47 Price to Book Value
- Over the past year, while the stock has generated a return of -14.21%, its profits have risen by 9.4% ; the PEG ratio of the company is 2.1
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -14.21% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to McGrath RentCorp should be less than 10%
- Overall Portfolio exposure to Finance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is McGrath RentCorp for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
McGrath RentCorp
-14.82%
0.01
27.24%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.88%
EBIT Growth (5y)
10.34%
EBIT to Interest (avg)
9.40
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
26.18%
Dividend Payout Ratio
20.15%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.68%
ROE (avg)
13.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
2.47
EV to EBIT
14.16
EV to EBITDA
9.78
EV to Capital Employed
1.99
EV to Sales
3.67
PEG Ratio
2.14
Dividend Yield
NA
ROCE (Latest)
14.05%
ROE (Latest)
12.66%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 345.44 MM
ROCE(HY)
Highest at 23.85%
INTEREST COVERAGE RATIO(Q)
Highest at 1,071.33
DEBT-EQUITY RATIO
(HY)
Lowest at 49.1 %
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 33.19%
OPERATING PROFIT MARGIN(Q)
Lowest at 35.44 %
Here's what is working for McGrath RentCorp
Interest Coverage Ratio
Highest at 1,071.33
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 345.44 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at 49.1 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for McGrath RentCorp
Operating Profit Margin
Lowest at 35.44 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Dividend Payout Ratio
Lowest at 33.19%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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