NEW YORK (TheStreet) -- Weatherford (WFT) - Get Report  stock is falling by 6.78% to $8.11 in early afternoon trading on Monday, as oil prices move lower on the persistent global supply glut and weak global economy.

Although U.S. crude output has shown signs of a decline in recent weeks, output from other major oil producers has kept the global oversupply above 1 million barrels per day, The Wall Street Journal reports. The economic downturn in China, the world's second-largest oil consumer, has made a demand-driven recovery unlikely. 

Also affecting oil prices, Citigroup cut its global growth forecast for 2016 to 2.9% from 3.1%, and later today the International Monetary Fund is expected to lower its forecast for global economic growth as well, according to The Journal. Oil prices have tended to mirror the movements of broader markets.

"The atmosphere is febrile and oil is caught up in the mix driven by oil fundamentals one minute and macroeconomic fundamentals the next," David Hufton of oil brokerage PVM told The Journal.

Crude oil (WTI) is falling 2.91% to $44.37 per barrel this afternoon, and Brent crude is down 2.70% to $47.29 per barrel, according to the index.

Weatherford, based in Baar, Switzerland, provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide.

Separately, TheStreet Ratings team rates WEATHERFORD INTL PLC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate WEATHERFORD INTL PLC (WFT) 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 237.2% when compared to the same quarter one year ago, falling from -$145.00 million to -$489.00 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, WEATHERFORD INTL PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for WEATHERFORD INTL PLC is currently lower than what is desirable, coming in at 28.66%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -20.46% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $291.00 million or 33.10% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Even though the current debt-to-equity ratio is 1.27, it is still below the industry average, suggesting that this level of debt is acceptable within the Energy Equipment & Services industry. Despite the fact that WFT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.69 is low and demonstrates weak liquidity.
  • You can view the full analysis from the report here: WFT