TSC Ratings' Updates: Tupperware

The following ratings changes were generated on Monday, Nov. 24.

We've downgraded Enbridge(ENB Quote), which engages in the transportation and distribution of crude oil and natural gas, from buy to hold. Strengths include its robust revenue growth, impressive record of earnings-per-share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, poor profit margins and weak operating cash flow.

Enbridge's revenue leaped by 65.8% since the same quarter a year ago, exceeding the industry average of 30.1% growth and boosting EPS in the most recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, it increased its bottom line by earning $1.96 vs. $1.79 in the prior year. Current return on equity exceeded its ROE from the same quarter one year prior, a clear sign of strength within the company. On the basis of ROE, Enbridge has underperformed the oil, gas and consumable fuels industry and outperformed the S&P 500.

Net operating cash flow has significantly decreased to -$131.80 million, or 65.99% when compared with the same quarter last year. In addition, when compared with the industry average, the firm's growth rate is much lower. Currently the debt-to-equity ratio of 1.75 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated