The following ratings changes were generated on Friday, Feb. 13.

We've downgraded engineered automotive systems manufacturer

BorgWarner

(BWA) - Get Report

from hold to sell, driven by its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Return on equity has greatly decreased since the same quarter last year, a signal of major weakness within the corporation. Net operating cash flow fell 42.8% to $135.7 million but outperformed the industry average of -122.7% growth. Earnings per share declined by 216.7% compared with the year-ago quarter, but the consensus estimate suggests that the company's two-year trend of declining EPS should reverse in the coming year. BorgWarner's gross profit margin of 14.1% is extremely low, having decreased since the same quarter last year.

Shares tumbled by 53% over the past year, underperforming the

S&P 500

, but that should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

We've upgraded

DG FastChannel

(DGIT)

, which provide digital technoloty services that enable the electronic delivery of advertisements, syndicated programs and video news releases, from hold to buy. This rating is driven by the company's robust revenue growth, compelling growth in net income, expanding profit margins, impressive record of EPS growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Revenue leaped by a very impressive 67.9% since the same quarter last year, exceeding the industry average of 16.7% growth. Net income increased by 85.8%, from $3 million to $5.5 million, significantly outperforming the S&P 500 and the communications equipment industry. EPS are up 30% compared with the year-ago quarter, though we anticipate underperformance in the coming year relative to the company's two-year trend of positive EPS growth. DG's gross profit margin of 58.8% is rather high, having increased from the same quarter last year, and its net profit margin of 10.6% is above the industry average. Its 0.6 debt-to-equity ratio is somewhat low overall but high compared with the industry average.

We've downgraded

Jarden

(JAH)

, which engages in the manufacture, sourcing, marketing and distribution of consumer products, from hold to sell. This rating is driven by the company's deteriorating net income, generally weak debt management, disappointing return on equity, poor profit margins and weak operating cash flow.

Net income fell from -$11.2 million in the year-ago quarter to -$170.4 million in the most recent quarter, significantly underperforming the S&P 500 and the household durables industry. Net operating cash flow decreased by 30.7% to $195.2 million, and ROE also fell. Jarden's debt-to-equity ratio is very high at 2.1 and higher than the industry average, implying very poor management of debt levels within the company. Its quick ratio of 1 illustrates its inability to avoid short-term cash problems. Gross profit margin of 30.3% is lower than desirable, though it has increased since the same period lat year.

We've downgraded

Seagate Technology

(STX) - Get Report

, which designs, manufactures and markets disc drives, from hold to sell, driven by its deteriorating net income, generally weak debt management, disappointing return on equity, poor profit margins and weak operating cash flow.

Net income fell from $403 million in the year-ago quarter to -$2.8 billion in the most recent quarter, significantly underperforming the S&P 500 and the computers and peripherals industry. Return on equity also greatly decreased, a signal of major weakness, and net operating cash flow decreased by 87.8% to $88 million. ROE also greatly decreased.

Seagate's debt-to-equity ratio 1.3 is relatively high compared with the industry average, suggesting a need for better debt-level management. The company maintains a poor quick ratio of 0.9, illustrating the inability to avoid short-term cash problems. The 23.6% gross profit margin is rather low, having decreased from the same period last year, and the net profit margin of -123% is significantly below the industry average.

We've downgraded real estate investment trust

Taubman Centers

(TCO) - Get Report

from hold to sell, driven by its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Net income fell from $25.1 million in the year-ago quarter to -$95.1 million in the most recent quarter, significantly underperforming the S&P 500 and the REITs industry. EPS are down 565%, but the consensus estimate suggests that the company's two-year trend of declining EPS should reverse in the coming year. Taubman's 40.8% gross profit margin is strong, having increased from the same quarter last year, and the net profit margin of -46.5% is in line with the industry average. Revenue increased by 7.3% since the year-ago quarter.

Shares tumbled by 62.4% over the year, underperforming the S&P 500. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

Other ratings changes included

Pacer International

(PACR)

and

LivePerson

(LPSN) - Get Report

, both downgraded from hold to sell.

All ratings changes generated on Feb. 13 are listed below.

Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates. While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows. However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company. For those reasons, we believe a rating alone cannot tell the whole story, and that it should be part of an investor's overall research.