McGrath RentCorp (MGRC) exhibits 48.2% gross margins and 15.6% return on invested capital within Consumer Discretionary (Diversified Commercial Services), balanced against a 10.4x enterprise multiple and 4.8% implied options volatility.
Sustained 48.2% gross profitability converts into 25.8% operating margin and 15.6% ROIC, outpacing sector cost of capital.
ROIC: 15.6% // GM: 48.2%YoY revenue trajectory of +3.7% paired with 7.25% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +3.7% // FCF YLD: 7.25%Altman Z-Score of 2.96 and Piotroski F-Score of 5/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.96 // F-SCORE: 5/9Trading at 18.6x trailing P/E (17.3x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 18.6x // EV/EBITDA: 10.4xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $119.60 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Diversified Commercial Services require continuous execution to defend 16.6% net margins.
NET MARGIN: 16.6% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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