TSC Ratings' Updates: Allergan

The gross profit margin for GPK is rather low; currently it is at 18.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.40% trails that of the industry average.

The debt-to-equity ratio is very high at 3.44 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. To add to this, GPK has a quick ratio of 0.68, demonstrating the lack of ability of the company to cover short-term liquidity needs.

GPK had been rated a sell since Feb. 19, 2008.

Analog Devices(ADI Quote) has been downgraded from buy to hold. Analog Devices engages in the design, manufacture and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer and consumer applications. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

ADI has improved earnings per share by 15.8% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ADI increased its bottom line by earning $1.51 vs. $1.49 in the prior year. This year, the market expects an improvement in earnings ($1.73 vs. $1.51).