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NEW YORK (TheStreet) -- Shares of Basic Energy Services (BAS) - Get Basic Energy Services, Inc. Report were falling 3.3% to $4.74 Thursday after the oil company reported operating data for August 2015.

Basic said its well servicing rig count remained unchanged at 421 in August. The company reported 51,900 servicing rig hours at a rig utilization rate of 53%, compared to 52% in July 2015 and 74% in August 2014.

The company's fluid service truck count increased by eight to 1,015 in August. Basic reported 188,100 fluid service truck hours in the month, compared to 193,200 in July 2015 and 215,100 in August 2014.

"Given the volatility in oil prices during the month of August and the corresponding impact on our customers' spending, we were pleased to maintain utilization at relatively flat levels compared to July for our production related services," Basic President and CEO Roe Patterson said in a statement. "However, to maintain these utilization levels, we did give additional rate concessions in all business segments."

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"Activity levels for our completion related services were lower in August than July due to lower customer spending resulting from the drop in oil prices," Patterson continued.

TheStreet Ratings team rates BASIC ENERGY SERVICES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate BASIC ENERGY SERVICES INC (BAS) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 2076.9% when compared to the same quarter one year ago, falling from $2.44 million to -$48.30 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, BASIC ENERGY SERVICES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BASIC ENERGY SERVICES INC is rather low; currently it is at 20.98%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -24.37% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $22.34 million or 65.86% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Although BAS's debt-to-equity ratio of 3.42 is very high, it is currently less than that of the industry average. Even though the debt-to-equity ratio is weak, BAS's quick ratio is somewhat strong at 1.46, demonstrating the ability to handle short-term liquidity needs.
  • You can view the full analysis from the report here: BAS Ratings Report