TSC Ratings' Updates: Ctrip.com

We've downgraded Dentsply(XRAY Quote) from buy to hold. Strengths include its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Revenue increased 8.6% since the same quarter a year ago, underperforming the industry average of 15%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Dentsply's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying very successful management of debt levels. The company also has a quick ratio of 1.75, which demonstrates its ability to cover short-term liquidity needs.

The return on equity has improved slightly when compared to the same quarter one year prior, which can be construed as a modest strength in the organization. On the basis of ROE, Dentsply has underperformed the health care equipment and supplies industry but has outperformed the S&P 500. Net income increased 0.5% since the same quarter last year, to $66.1 million, underperforming the industry but outperforming the S&P 500.

Other ratings changes include Hecla Mining(HL Quote) and Zale(ZLC Quote), both downgraded from hold to sell.

All ratings changes generated on Nov. 20 are listed below.

Ticker	Company	Current	Change	Previous
ABAT	Advanced Battery Technologies	HOLD	Downgrade	BUY
ARM	ArvinMeritor	SELL	Downgrade	HOLD
CCC	Calgon Carbon	HOLD	Downgrade	BUY
CMED	China Medical	HOLD	Downgrade	BUY
CSR	China Security & Surveillance	SELL	Downgrade	HOLD
CTRP	Ctrip.com	HOLD	Downgrade	BUY
DFT	DuPont Fabros	SELL	Initiated
DHT	DHT Maritime	HOLD	Upgrade	SELL
FCFS	First Cash Financial	HOLD	Downgrade	BUY
FIT	Health Fitness	HOLD	Upgrade	SELL
FOE	Ferro	SELL	Downgrade	HOLD
GEF	Greif	HOLD	Downgrade	BUY
HL	Hecla Mining	SELL	Downgrade	HOLD
IMMR	Immersion	SELL	Downgrade	HOLD
IPGP	IPG Photonics	SELL	Downgrade	HOLD
LABL	Multi-Color	HOLD	Downgrade	BUY
MENT	Mentor Graphics	SELL	Downgrade	HOLD
O	Realty Income	HOLD	Downgrade	BUY
PLCM	Polycom	HOLD	Downgrade	BUY
REP	Repsol	SELL	Downgrade	HOLD
SUMR	Summer Infant	SELL	Downgrade	HOLD
UCTT	Ultra Clean Holdings	SELL	Downgrade	HOLD
WASH	Washington Trust Bancorp	HOLD	Downgrade	BUY
XRAY	Dentsply	HOLD	Downgrade	BUY
ZLC	Zale	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.