TSC Ratings' Updates: Allergan

ORLY's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.44 is very weak and demonstrates a lack of ability to pay short-term obligations.

ORLY had been rated a hold since June 6, 2008.

Graphic Packaging(GPK Quote) has been upgraded from sell to hold. Graphic Packaging, together with its subsidiaries, provides paperboard packaging solutions for various products to multinational and other consumer products companies. It operates in two segments, paperboard packaging and containerboard/other. The company's strengths can be seen in multiple areas, such as 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 a generally disappointing performance in the stock itself.

GPK's very impressive revenue growth greatly exceeded the industry average of 13.8%. Since the same quarter one year prior, revenue rose by 83.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

GPK has reported significant earnings per share improvement 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, GPK continued to lose money, posting a loss of 24 cents vs a loss of 48 cents in the prior year.