TSC Ratings' Updates: NuStar

Shares are down 26.1% on the year, but don't assume that the stock can now be tagged as cheap and attractive. Based on its current price in relation to its earnings, BOK is still more expensive than most of the other companies in its industry.

We've downgraded Ecolab(ECL Quote), which develops and markets products and services for the hospitality, foodservice, health care and light industrial markets, from buy to hold. Strengths include its growth in earnings per share, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, we also find weaknesses including a decline in the stock price during the past year, weak operating cash flow and disappointing return on equity.

Revenue rose by 15.1% since the same quarter last year, trailing the industry average of 26.2% growth. Ecolab's 0.5 debt-to-equity ratio is low and below the industry average, implying successful management of debt levels, but its quick ratio of 0.9 is somewhat weak and could be cause for future problems. Net operating cash flow has decreased by 21.5% to $185.5 million or 21.53% compared with the year-ago quarter.

Earnings per share rose by 8.7% in the most recent quarter compared with the year-ago quarter. The company has demonstrated a pattern of positive EPS growth over the past two years, which we feel should continue, suggesting improvement in business performance. During the past fiscal year, Ecolab increased its bottom line by earning $1.70 vs. $1.43 in the prior year, and this year, the market expects furthetr improvement in earnings to $1.86.