Monmouth Real Estate Investment Corp Stock Upgraded (MNR)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Monmouth Real Estate Investment (NYSE: MNR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from the ratings report include:
  • MNR's revenue growth has slightly outpaced the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 17.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for MONMOUTH RE INVESTMENT CP is rather high; currently it is at 53.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.80% is above that of the industry average.
  • Net operating cash flow has significantly increased by 67.47% to $10.93 million when compared to the same quarter last year. In addition, MONMOUTH RE INVESTMENT CP has also vastly surpassed the industry average cash flow growth rate of 8.05%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 33.8% when compared to the same quarter one year prior, rising from $4.18 million to $5.59 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

Monmouth Real Estate Investment Corporation (MREIC) is a real estate investment trust. It owns, manages, and leases properties to investment-grade tenants on long-term leases. The firm invests in the public equity and real estate markets of the United States. Monmouth Real Estate Investment has a market cap of $593.6 million and is part of the financial sector and real estate industry. Shares are up 15.8% year to date as of the close of trading on Wednesday.

You can view the full Monmouth Real Estate Investment Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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