BAS Stock Report

2-Year Price History

A Word Of Caution

Basic Energy Services, Incorporated (BAS) has experienced a very significant loss in market value recently. Clearly this drop in price will have an impact on the valuation but the recent events that caused the drop may have not been fully factored into our analysis yet. When a stock loses value very quickly it could be a sign that there is a fear of bankruptcy.

Please take a look at the RazorWire feed on the right hand side of the page. If Basic Energy Services, Inc. has been mentioned on business television recently a portion of that story should be displayed. This should help bring you up to speed on any major issues they are facing right now.

Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect significant factors surrounding this company.

Therefore, (and as always), check additional sources and available information regarding BAS before making an investment decision.

Ockham's Rating

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BAS Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BAS through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 5 years are 1.43x and 0.70x respectively.

Utilizing this range we can see that BAS’s current Price to Sales per share ratio of 0.30x is significantly below its average levels historically. In fact, with a current price of $6.91, BAS is a full 72% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for BAS.

BAS Cash Earnings

BAS is not forecasted to produce positive Cash Earnings this year, based on recent performance. This is not a positive situation, as we would always prefer that a company is producing cash every year. However, it is important to recognize that not all companies or types of companies have the goal of producing positive Cash Earnings either early in their business cycle or following significant turnaround changes. When looking at BAS, we hesitate to be overly negative on the company, but it is of concern that the company is not profitable at this time. Let's face it, companies cannot remain unprofitable for very long before a change has to be made. This could mean further restructuring or corporate event such as selling assets or spinning off divisions, at any rate a company with negative cash flows is not one that often makes a great investment unless you can acquire it at an extremely depressed price.

BAS Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. Although they may currently pay a dividend, our data source has no historical record of it for BAS. Since we cannot apply our historical trend analysis to dividends for BAS we have a neutral score for the dividend portion of our analysis.