Middlesex Water's Declining Share Price Linked to Slow Earnings Growth and Moderate Returns
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Middlesex Water's share price has declined 24% over the last 3 months, so the article studies the company's financials to see if they are related.
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Return on Equity (ROE) measures how effectively a company is growing value and managing investors' money. Middlesex Water's ROE is 7.8%.
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Middlesex Water's net income growth over the past 5 years has been low at 3.6%, below the industry average of 8.9%.
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The company retains 51% of its earnings, but its ROE is only moderate at 7.8%, which could explain the lackluster earnings growth.
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The article cautions proceeding with caution with Middlesex Water due to its low rate of return possibly hampering earnings growth.