Mexco Energy (MXC) AI Stock Analysis

• Market Cap: $23.53M
• Dividend Yield: 0.96%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 100.9
• Beta (1Y): -0.27
• Revenue Growth: 7.26%
• EPS Growth: 40.01%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.02
• Shares Outstanding: 2,046,000
• 10 Day Avg. Volume: 4,337
• 30 Day Avg. Volume: 4,574
• PEG Ratio: 0.33
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 19.77
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: 4.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $14.00 ▲(29.15% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is supported primarily by strong financial positioning (very low leverage and solid recent cash generation) and constructive technical trend (price above key moving averages with positive MACD). These positives are tempered by a very high P/E and a negative corporate update highlighting profit pressure from weaker oil.

Positive Factors

Low leverage / strong balance sheet

Extremely low leverage provides durable financial flexibility: it supports funding continued investments in wells and minerals, cushions cash flow volatility from commodity swings, enables opportunistic acquisitions, and lowers refinancing risk during prolonged price downturns.

Improved cash generation (TTM)

Stronger trailing-twelve-month operating and free cash flow enhances the company’s ability to self-fund development, pay down obligations, and sustain reinvestment in horizontal wells. Over 2–6 months this supports capital program execution and balance-sheet resilience.

Non-operator working-interest model with active investments

A non-operator working-interest model lowers direct operating burden and capex responsibility while preserving upside from production. Continued investments in horizontals and minerals support reserve replacement and future volume optionality without the fixed cost base of large operators.

Negative Factors

High oil revenue sensitivity

Heavy revenue concentration in oil makes cash flow and earnings highly sensitive to oil price cycles. Prolonged weak oil directly compresses operating revenues and margins, limiting the company’s ability to fund development or return capital absent hedges or portfolio changes.

Negative revenue & EPS trends

Recent negative revenue and EPS growth indicate production or price pressures that reduce internal funding capacity. Continued declines would constrain organic development, undermine reinvestment, and magnify reliance on external financing or asset sales to sustain growth.

Inconsistent free cash flow and operating volatility

Historic swings in free cash flow and operating results complicate long-term planning and capital allocation. Inconsistent cash conversion raises the firm’s effective cost of capital, limits steady dividend or buyback policies, and increases vulnerability to multi-quarter downturns.

Mexco Energy Business Overview & Revenue Model

Company Description

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,300 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. As of March 31, 2022, the company's total estimated proved reserves were approximately 1.616 million barrels of oil equivalent. It also owned leasehold mineral, royalty, and other interests in approximately 2,970 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.

How the Company Makes Money

Mexco Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs) produced from its assets. The company employs a revenue model that relies heavily on the prices of these commodities, which can fluctuate based on market conditions. Key revenue streams include the direct sale of produced hydrocarbons, royalties from non-operated properties, and potential joint ventures with other operators or companies in the energy sector. Additionally, Mexco may benefit from strategic partnerships that enhance its operational capabilities or expand its asset base, allowing for increased production and revenue generation.

Mexco Energy Financial Statement Overview

Summary

Financials are a net positive, led by an exceptionally strong, low-leverage balance sheet and solid recent cash generation. The main offset is operating volatility: TTM revenue and margins have cooled versus 2022–2023 highs, and free-cash-flow consistency has been uneven historically.

Income Statement

Profitability is solid in TTM (Trailing-Twelve-Months), with healthy gross and net margins, and operating profitability remaining positive. However, results have cooled meaningfully versus the very strong 2022–2023 period, with TTM revenue down ~6.8% and margins lower than prior peaks, pointing to a more volatile earnings profile typical of the sector.

Balance Sheet

The balance sheet is a clear strength: leverage is extremely low across periods, with minimal debt relative to equity, providing strong financial flexibility. Returns on equity are positive but have normalized from the unusually high 2022–2023 levels, so the main drawback is not solvency but the volatility in profitability rather than balance-sheet risk.

Cash Flow

Cash generation is strong in TTM (Trailing-Twelve-Months): operating cash flow is robust and comfortably covers reported earnings, and free cash flow is also high with a sharp improvement versus the prior annual period. The key weakness is consistency—free cash flow was comparatively low in several annual periods and was negative in 2021—suggesting cash conversion can swing meaningfully year to year.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	6.92M	7.36M	6.60M	9.56M	6.59M	2.80M
Gross Profit	2.83M	3.30M	3.11M	5.98M	3.96M	1.02M
EBITDA	4.29M	4.48M	3.97M	6.69M	4.33M	1.14M
Net Income	1.25M	1.71M	1.34M	4.66M	2.86M	155.93K
Balance Sheet
Total Assets	20.56M	20.35M	20.69M	17.82M	13.28M	10.83M
Cash, Cash Equivalents and Short-Term Investments	2.27M	1.75M	2.47M	2.24M	1.37M	57.81K
Total Debt	122.86K	126.53K	19.26K	75.63K	129.92K	1.18M
Total Liabilities	1.30M	1.64M	3.07M	987.80K	1.06M	2.01M
Stockholders Equity	19.26M	18.71M	17.63M	16.83M	12.22M	8.82M
Cash Flow
Free Cash Flow	3.92M	853.00K	1.08M	1.20M	1.86M	-885.19K
Operating Cash Flow	4.26M	4.27M	4.43M	6.52M	3.74M	710.05K
Investing Cash Flow	-2.70M	-4.15M	-3.42M	-5.44M	-1.71M	-1.39M
Financing Cash Flow	-204.60K	-834.58K	-779.72K	-209.81K	-721.43K	701.01K

Mexco Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MXC, the sentiment is Neutral. The current price of 10.84 is below the 20-day moving average (MA) of 11.64, below the 50-day MA of 11.04, and above the 200-day MA of 9.43, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 26.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MXC.

Mexco Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	74 Outperform	$23.53M	100.88	6.59%	0.96%	7.26%	40.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BRN	49 Neutral	$13.19M	-2.18	-77.96%	―	-32.91%	-23.72%
BATL	48 Neutral	$246.03M	-6.77	-8.95%	―	-4.08%	-325.73%

Mexco Energy Corporate Events

Mexco Energy Posts Lower Q3 Profit Amid Weak Oil

Mexco Energy Corporation reported on February 10, 2026, that net income for the nine months ended December 31, 2025, was $615,702, or $0.30 per diluted share, while third-quarter fiscal 2026 net income fell 89% year over year to $50,245, or $0.02 per diluted share, largely due to lower oil prices. Operating revenues declined 8% to $4.93 million over the nine-month period as reduced oil prices and production volumes outweighed gains in natural gas prices, volumes and investment income, though oil still accounted for 77% of revenues, and the company continued to invest about $1.6 million in 50 planned horizontal wells and roughly $650,000 in royalty and mineral interests across approximately 100 producing wells in seven counties in four states, signaling ongoing development despite pricing pressures.

The most recent analyst rating on (MXC) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Mexco Energy stock, see the MXC Stock Forecast page.