TSC Ratings' Updates: Texas Capital Bancshares

The revenue growth came in higher than the industry average of 15.4%. Since the same quarter one year prior, revenue rose by 28.4%. Growth in the company's revenue appears to have helped boost the earnings per share.

CNH 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CNH has increased its bottom line by earning $2.35 vs. $1.23 in the prior year. This year, the market expects an improvement in earnings ($3.55 vs. $2.35).

Net operating cash flow has significantly decreased to -$167.00 million or 1570.00% when compared with the same quarter last year. In addition, when comparing it to 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 with the industry average, suggesting that the current management of debt levels should be re-evaluated.

CNH has been rated a hold since July 24, 2007.

Aurizon Mines(AZK Quote) has been downgraded from hold to sell. Aurizon Mines, engages in the acquisition, exploration, development and operation of gold properties in North America. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and disappointing return on equity.

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the metals & mining industry average, but is greater than that of the S&P 500. The net income has decreased by 19.2% when compared with the same quarter one year ago, dropping from $6.98 million to $5.64 million.

Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared with other companies in the metals & mining industry and the overall market, AZK's return on equity significantly trails that of both the industry average and the S&P 500.

AZK's earnings per share declined by 20.0% in the most-recent quarter compared with the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AZK has turned its bottom line around by earning 4 cents vs. -10 cents in the prior year.

48.90% is the gross profit margin for AZK which we consider to be strong. Regardless of AZK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.50% trails the industry average.

Compared with where it was trading one year ago, AZK is down 27.30% to its most-recent closing price of 2.85. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.

AZK had been rated a hold since December 11, 2007. The following ratings' changes were generated on September 26.

Ticker	Company	Current	Change	Previous
ANCX	Access National	SELL	Downgrade	HOLD
AZK	Aurizon Mines	SELL	Downgrade	HOLD
BVX	Bovie Medical	BUY	Upgrade	HOLD
CGV	CGG Veritas	HOLD	Downgrade	BUY
CNH	CNH Global NV	HOLD	Downgrade	BUY
CPSL	China Precision Steel	HOLD	Upgrade	SELL
FRD	Friedman Industries	BUY	Upgrade	HOLD
HBAN	Huntington Bancshares	HOLD	Upgrade	SELL
MFCO	Microwave Filter Co.	HOLD	Upgrade	SELL
NAII	Natural Alternatives	HOLD	Upgrade	SELL
SSP	EW Scripps	SELL	Downgrade	HOLD
TCBI	Texas Capital Bancshares	BUY	Upgrade	HOLD
TPL	Texas Pacific Land Trust	HOLD	Downgrade	BUY
WLFC	Willis Lease Financial Corp	BUY	Upgrade	HOLD
WTT	Wireless Telecom Group Inc.	SELL	Downgrade	HOLD

Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.

For those reasons, we believe a rating alone cannot tell the whole story, and that it should be part of an investor's overall research.