TSC Ratings' Updates: Aeropostale

Masimo's gross profit margin is currently very high, coming in at 72.8%, having increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.7% trails the industry average. Net operating cash flow has significantly increased by 77.45% to $18.32 million when compared with the same quarter last year. In addition, Masimo has also vastly surpassed the industry average cash flow growth rate of 1.54%. The company's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.07, which clearly demonstrates the ability to cover short-term cash needs.

Shares are off by a sharp 28.38% compared with a year ago, but its decline was actually not as bad as the broader market plunge during the same time frame. One factor that may have helped cushion the fall somewhat was the improvement in the company's earnings per share for the last quarter as compared with the same quarter a year earlier. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. Based on its current price in relation to its earnings, MASI is still more expensive than most of the other companies in its industry.

We've downgraded Mindray Medical International(MR Quote), which engages in the development, manufacture and marketing of medical devices, from hold to sell, driven by a generally disappointing historical performance in the stock itself.