Starbucks, M&T Bank: Ratings Changes

BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded television broadcaster CBS(CBS) to "hold."

The numbers: The company swung to a third-quarter profit of $208 million, or 30 cents a share, from a loss of $12.5 billion, or $18.58, in the year-earlier period. Revenue decreased marginally to $3.4 billion. CBS's gross margin declined from 39% to 36%, and its operating margin fell from 15% to 13%. A quick ratio of 0.8 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.8 demonstrates reasonable leverage.

The stock: CBS has risen 53% this year, outpacing major U.S. indices. The company's operating results have been erratic during the past year. The shares pay a 1.6% dividend yield.

The model downgraded insurer Manulife Financial(MFC) to "sell."

The numbers: The company swung to a third-quarter loss of $172 million, or 12 cents a share, from a profit of $510 million, or 33 cents, in the year-earlier period. Revenue surged 141% to $14 billion. Manulife's gross margin plummeted from 32% to 3%, and its operating margin declined from 16% into negative territory. The company has an admirable financial position, with $19 billion of cash and $10 billion of debt.

The stock: Manulife has advanced 12% this year, lagging behind major U.S. indices. The company's operating results have been inconsistent during the past year. The shares pay a 2.6% dividend yield.

The model downgraded M&T Bank(MTB) to "hold."

The numbers: Third-quarter net income increased 40% to $128 million and earnings per share climbed 18% to 97 cents, hurt by a higher share count. Revenue grew 4% to $950 million. M&T's gross margin rose from 55% to 68%, and its operating margin advanced from 19% to 30%. The bank is adequately capitalized, with $1.4 billion of cash. A debt-to-equity ratio of 1.7 reflects excessive leverage.