TSC Ratings' Updates: Ctrip.com

Shares are down 44.5% compared with a year ago, apparently dragged down in part by the decline we have seen in the S&P 500. In one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. However, due to other concerns, we feel the stock is still not a good buy right now.

We've downgraded Realty Income(O Quote), which engages in the acquisition and ownership of commercial retail real estate properties in the U.S., from buy to hold. Strengths include its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a decline in the stock price during the past year.

Revenue rose by 12.3% since the same quarter one year prior, outperforming the industry average of 4.2%. EPS, however, declined. The debt-to-equity ratio is somewhat low, currently at 0.94, and is less than that of the industry average, implying a relatively successful effort in the management of debt levels. The company's current return on equity has slightly decreased from the same quarter one year prior, implying a minor weakness in the organization. Realty Income's ROE is below that of both the industry average and the S&P 500.

Net operating cash flow has declined marginally to $45.06 million, or 3.31% when compared with the same quarter last year. In addition, when comparing the cash generation rate with the industry average, the firm's growth is significantly lower.