TSC Ratings' Updates: Sina

The following ratings changes were generated on Wednesday, Dec. 3.

We've downgraded Canadian National Railway(CNI Quote) from buy to hold. Strengths include its impressive record of earnings-per-share growth, increase in net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a decline in price during the past year.

Canadian National Railway has improved earnings per share by 20.8% in the most recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, it increased its bottom line by earning $4.28 vs. $3.90 in the prior year. Net income growth of 13.8% from the same quarter one year ago has greatly exceeded that of the S&P 500 but is less than that of the road and rail industry average. The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying a relatively successful effort in the management of debt levels. The quick ratio, however, which is currently 0.53, displays a potential problem in covering short-term cash needs. ...