TSC Ratings' Updates: Star Gas

The following ratings changes were generated on Monday, Dec. 22.

We've upgraded AthenaHealth(ATHN Quote), which provides Internet-based business services for physician practices, from sell to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, we also find weaknesses including premium valuation and a decline in the stock price during the past year.

Revenue rose by 35.4% since the same quarter a year ago, outperforming the industry average of 3.7% growth and boosting earnings per share. AthenaHealth's debt-to-equity ratio is very low at 0.1 and is currently below that of the industry average, implying very successful management of debt levels. The company also maintains a quick ratio of 4, which clearly demonstrates its ability to cover short-term cash needs. ...