Mexco Energy (MXC) AI Stock Analysis

• Market Cap: $16.78M
• Dividend Yield: 1.23%
• Average Volume (3M): 6.26K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -0.25
• Revenue Growth: 13.06%
• EPS Growth: 45.64%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.12
• Shares Outstanding: 2,046,000
• 10 Day Avg. Volume: 4,102
• 30 Day Avg. Volume: 6,260
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: 3.49
• 1Y Price Target: $9.00
• Price Target Upside: 10.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $9.00 ▲(10.43% Upside)

Mexco Energy's overall stock score reflects strong financial performance and a fair valuation, but technical indicators and recent corporate events present challenges. The company's financial stability and plans for increased production are positive, but the recent decline in net income and bearish technical signals weigh on the score.

Mexco Energy Business Overview & Revenue Model

Company Description

Mexco Energy Corporation (MXC) is an independent oil and natural gas company primarily engaged in the exploration, development, and production of oil and gas reserves in the United States. The company focuses on the acquisition of oil and gas properties, with significant operations in regions such as the Permian Basin, where it utilizes advanced extraction techniques to optimize production. Mexco Energy aims to enhance its asset base through strategic partnerships and investments in new technologies that increase efficiency and output.

How the Company Makes Money

Mexco Energy generates revenue primarily through the sale of crude oil and natural gas. The company monetizes its production by selling these resources to various distributors and refineries, benefiting from favorable market prices. Key revenue streams include the production of oil and gas from its owned properties, as well as potential revenues from joint ventures and partnerships that enhance exploration and development capabilities. Additionally, Mexco may engage in hedging strategies to mitigate the impact of volatile energy prices, ensuring more predictable cash flows. Significant partnerships with other energy companies allow Mexco to share resources and reduce operational costs, contributing to its overall earnings.

Mexco Energy Financial Statement Overview

Summary

Mexco Energy demonstrates strong financial performance with notable revenue growth and profitability. The balance sheet shows minimal leverage and strong equity, indicating financial stability. However, there is room for improvement in free cash flow growth.

Income Statement

Mexco Energy has demonstrated notable revenue growth from 2024 to 2025, with a Revenue Growth Rate of 11.4%. The Gross Profit Margin stands at 44.9% and the Net Profit Margin at 23.3%, indicating strong profitability. The EBIT and EBITDA margins are also impressive at 26.5% and 60.8% respectively, showing efficient operations. However, the previous year had a significantly higher total revenue, and the company needs to maintain this growth trajectory.

Balance Sheet

The company's balance sheet is solid with a very low Debt-to-Equity Ratio of 0.01, indicating minimal leverage. The Return on Equity is strong at 9.2%, reflecting efficient use of equity to generate profits. Additionally, the Equity Ratio is high at 92.0%, showing a strong equity base compared to total assets, which suggests financial stability and low financial risk.

Cash Flow

Operating Cash Flow to Net Income Ratio is 2.5, indicating good cash generation relative to net income. Free Cash Flow has seen a decline from the previous year, but the Free Cash Flow to Net Income Ratio remains positive at 0.5. The company has managed its capital expenditures effectively to ensure positive free cash flow, though maintaining sustainable free cash flow growth remains a challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.44M	7.36M	6.60M	9.56M	6.59M	2.80M
Gross Profit	3.28M	3.30M	3.11M	5.98M	3.96M	1.02M
EBITDA	4.57M	4.48M	3.97M	6.72M	4.36M	1.14M
Net Income	1.66M	1.71M	1.34M	4.66M	2.86M	155.93K
Balance Sheet
Total Assets	20.56M	20.35M	19.06M	17.82M	13.28M	10.83M
Cash, Cash Equivalents and Short-Term Investments	2.55M	1.75M	2.47M	2.24M	1.37M	57.81K
Total Debt	114.20K	126.53K	19.26K	75.63K	129.92K	1.18M
Total Liabilities	1.76M	1.64M	1.43M	987.80K	1.06M	2.01M
Stockholders Equity	18.80M	18.71M	17.63M	16.83M	12.22M	8.82M
Cash Flow
Free Cash Flow	3.32M	853.00K	1.08M	1.20M	1.86M	-885.19K
Operating Cash Flow	4.55M	4.27M	4.43M	6.52M	3.74M	710.05K
Investing Cash Flow	-3.80M	-4.15M	-3.42M	-5.44M	-1.71M	-1.39M
Financing Cash Flow	-719.18K	-834.58K	-779.72K	-209.81K	-721.43K	701.01K

Mexco Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MXC, the sentiment is Negative. The current price of 8.15 is below the 20-day moving average (MA) of 8.21, below the 50-day MA of 8.75, and below the 200-day MA of 9.54, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 31.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MXC.

Mexco Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	70 Outperform	$16.78M	10.24	9.13%	1.23%	13.06%	45.64%
Sector *	65 Neutral	$14.84B	8.62	2.77%	5.45%	4.51%	-62.52%
BRN	45 Neutral	$11.14M	―	-58.49%	―	-34.85%	-68.02%
BATL	44 Neutral	$19.58M	―	117.53%	―	-6.23%	45.67%

Mexco Energy Corporate Events

Mexco Energy Reports 17% Drop in Net Income

On August 12, 2025, Mexco Energy Corporation reported a 17% decrease in net income for the first quarter of fiscal 2026 compared to the previous year, despite a 5% increase in operating revenues. The company plans to participate in the drilling of 35 and completion of 17 horizontal wells by the end of fiscal year 2026, with significant increases in oil and natural gas production volumes but a decrease in oil prices impacting overall financial performance.

Mexco Energy Reports 27% Net Income Increase

On June 27, 2025, Mexco Energy Corporation announced its financial results for fiscal 2025, reporting a 27% increase in net income to $1,712,368 and an 11% rise in operating revenues to $7,358,066 compared to fiscal 2024. The company participated in drilling 35 horizontal wells and acquired various royalty and mineral interests, while its estimated proved reserves decreased due to lower oil and gas prices. Mexco Energy remains financially stable with $2.2 million in cash and no outstanding bank debt, actively seeking new opportunities.