TSC Ratings' Updates: ArvinMeritor

The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TIF's debt-to-equity ratio is low, the quick ratio, which is currently 0.54, displays a potential problem in covering short-term cash needs.

The gross profit margin for TIF is rather high; currently it is at 57.80%. Regardless of TIF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TIF's net profit margin of 11.00% compares favorably with the industry average.

After a year of stock price fluctuations, the net result is that TIF's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 index, was essentially similar.

Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

TIF had been rated a buy since Nov. 21, 2008.

Denison Mines(DNN Quote) has been initiated at sell. Denison Mines, together with its subsidiaries, engages in the development, exploration, and production of oil and gas, gold, copper, cobalt, zinc, lead, silver, uranium, vanadium, diamonds, phosphate, iodine, sulphate and nitrate in North America, Zambia and Mongolia. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and poor profit margins.