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Attractive stocks have exceptional fundamentals. In the case of McGrath RentCorp (NASDAQ:MGRC), there's is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on McGrath RentCorp here.
Established dividend payer with adequate balance sheet
MGRC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that MGRC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MGRC appears to have made good use of debt, producing operating cash levels of 0.55x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
MGRC is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For McGrath RentCorp, I've put together three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MGRC’s future growth? Take a look at our free research report of analyst consensus for MGRC’s outlook.
- Historical Performance: What has MGRC's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MGRC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.