Two MN Cos. Make Fortune’s Fastest-Growing Cos. List
Two Minnesota-based businesses are among the nation’s 100 fastest-growing companies, according to a recently released list from Fortune magazine.
Oil and natural gas exploration and production company Northern Oil and Gas, Inc., ranked 17th, and all-terrain vehicle manufacturer Polaris Industries, Inc., ranked 57th.
To compile its list, Fortune considered domestic- and foreign-based companies that trade on a major U.S. stock exchange, file quarterly reports with the U.S. Securities and Exchange Commission, had a minimum market capitalization of $250 million and a stock price of at least $5 per share on June 28, and have been trading continuously since June 30, 2010. Additionally, eligible companies must have had revenue of at least $50 million and net income of at least $10 million for the four quarters that ended on or before April 30. Finally, companies must have reported annual revenue and earnings per share (EPS) growth of at least 20 percent over a three-year period that ended on or before April 30.
Fortune then ranked the companies based on their annual revenue growth rate, EPS growth rate, and average total return over a three-year period that ended June 28. (Click here for the list’s full methodology.)
Wayzata-based Northern Oil, which drills primarily in North Dakota and Montana, reported a three-year revenue growth rate of 172 percent. The company reportedly had a three-year profit growth rate of 130 percent, with a 1 percent average total return. Although an investment firm recently said the company’s stock had not been living up to expectations (it dropped 21 percent over the last year), its price has been above $13 for most of this year—well above its price of approximately $3 per share in March 2009. Northern Oil was the only Minnesota-based company to make Fortune’s fastest-growing companies list last year.
Medina-based Polaris reported a three-year profit growth rate of 41 percent, with a 55 percent average total return. Its revenue increased 28 percent over the three-year period. The company’s earnings totaled $80 million, or $1.13 per share, for its most recent quarter—a 14.6 percent from the same period a year ago. Meanwhile, its second-quarter revenue rose 12 percent, to total $844.8 million.
Dublin, Ireland-based biopharmaceutical company Jazz Pharmaceuticals ranked first on Fortune’s list with a 68 percent average revenue growth rate, a 279 percent profit growth rate, and a 106 percent average total return. Dallas-based Holly Frontier Corporation ranked second, and Anaheim, California-based biopharmaceutical company Questcor Pharmaceuticals, Inc., ranked third. To view Fortune’s full list, click here.
Earlier this month, eight Minnesota-based companies made Inc. magazine’s list of the 500 fastest-growing, privately held businesses in the nation.