Bunge, Consol Energy: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model downgraded agriculture and food company Bunge(BG Quote) to "hold."

The numbers: Third-quarter net income decreased marginally to $232 million and earnings per share fell 5% to $1.62. Revenue dropped 24% to $11 billion. Bunge's gross margin descended from 9% to 4% and its operating margin turned into a slight loss. The company has poor liquidity, evident in its quick ratio of 0.5. A debt-to-equity ratio of 0.4 is below the industry average, indicating restrained leverage.

The stock: Bunge is up 22% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at an exorbitant price-to-earnings ratio due to sizable losses in the fourth- and first-quarter. Shares pay a 1.3% dividend yield.

The model upgraded coal producer Consol Energy(CNX Quote) to "buy."

The numbers: Third-quarter net income declined 3% to $87 million and earnings per share fell 2% to 48 cents, cushioned by a lower share count. Revenue dropped 4% to $1.1 billion. Consol's gross margin rose from 22% to 25% and its operating margin increased from 11% to 12%. A quick ratio of 0.2 demonstrates weak liquidity. A debt-to-equity ratio of 0.5 indicates conservative leverage.

The stock: Consol Energy has advanced 67% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and coal and consumable fuel peers. Shares pay a 0.8% dividend yield.

The model upgraded Herbalife(HLF Quote), a seller of weight-management and dietary-supplement products, to "buy."

The numbers: Second-quarter net income decreased 28% to $48 million and earnings per share dropped 24% to 77 cents, helped by a lower share count. Revenue fell 11% to $572 million. Herbalife's gross margin increased from 48% to 49%, but its operating margin descended from 15% to 13%. A quick ratio of 0.7 indicates less-than-ideal liquidity. A debt-to-equity ratio of 1 reflects higher-than-ideal leverage.