TSC Ratings' Updates: City National

CETV 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, CETV increased its bottom line by earning $2.08 vs. 59 cents in the prior year .

CETV's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared with the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.61 is very high and demonstrates very strong liquidity.

The return on equity has improved slightly when compared with the same quarter one year prior. This can be construed as a modest strength in the organization. When compared with other companies in the media industry and the overall market, CETV's return on equity is below that of both the industry average and the S&P 500.

CETV's stock share price has done very poorly compared with where it was a year ago: Despite any rallies, the net result is that it is down by 49.59%, which is also worse that the performance of the S&P 500 Index.

Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, on the basis of its current price in relation to its earnings, CETV is still more expensive than most of the other companies in its industry.

CETV had been rated a buy since Aug. 21, 2007.