Upgrades, Downgrades: Alberto-Culver

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The following ratings changes were generated on Thursday, June 19.

Alberto-Culver (ACV Quote), which is engaged in the development, manufacture, distribution and marketing of beauty care, household, health care and hair care products, was upgraded to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Revenue from its recent quarter increased slightly by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Net income increased by 28.7% year over year to $29.03 million from $22.56 million. The gross profit margin for company is rather high; currently it is at 55.10%. It has increased from the same quarter last year. Along with this, the net profit margin of 7.00% is above that of the industry average. Net operating cash flow has significantly increased to $61.67 million, an increase of 529.47% compared with the same quarter last year. In addition, Alberto has also vastly surpassed the industry average cash flow growth rate of 185.95%. Alberto had been rated hold since Nov. 28, 2006