TSC Ratings' Updates: Revlon

The following ratings changes were generated on Tuesday, Feb. 17.

We've upgraded Amphenol(APH Quote), which designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems and coaxial and flat-ribbon cable worldwide, from hold to buy. This rating is driven by the company's notable return on equity, good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and relatively strong performance when compared with the S&P 500 during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Return on equity has improved slightly compared with the year-ago quarter, which can be construed as a modest strength in the organization, significantly outperforming the S&P 500 and the electronic equipment, instruments and components industry. Net operating cash flow has increased 28.4% to $170.8 million, though revenue fell slightly by 2.8%, underperforming the industry average. Earnings per share improved slightly, but while the company has demonstrated a pattern of positive EPS growth over the past two years, we anticipate underperformance relative to this pattern in the coming year. ...