Mexco Energy (MXC) AI Stock Analysis

• Market Cap: $18.27M
• Dividend Yield: 0.98%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 11.1
• Beta (1Y): -0.26
• Revenue Growth: 7.26%
• EPS Growth: 40.01%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.16
• 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: 0.90
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 3.56
• 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: 71 Outperform
• Price Target: $10.50 ▲(2.94% Upside)

Mexco Energy's strong financial performance and solid valuation are the primary drivers of its stock score. The company's robust profitability, low leverage, and efficient operations contribute significantly to its attractiveness. While technical indicators suggest a generally positive trend, some caution is warranted due to the slightly negative MACD. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Financial Stability

Minimal leverage indicates strong financial stability, reducing financial risk and enhancing the company's ability to weather market fluctuations.

Revenue Growth

Consistent revenue growth reflects successful operational strategies and market demand, supporting long-term business expansion.

Profitability

High profitability margins indicate efficient operations and strong competitive positioning, contributing to sustainable financial performance.

Negative Factors

Oil Price Dependency

Heavy reliance on oil prices exposes the company to market volatility, which can impact revenue stability and predictability.

Free Cash Flow Challenges

Declining free cash flow can limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Revenue Model Vulnerability

Dependence on fluctuating commodity prices introduces revenue uncertainty, affecting long-term financial planning and stability.

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

Mexco Energy shows strong profitability with a net profit margin of 23.3% and efficient operations reflected in EBIT and EBITDA margins. The balance sheet is robust with minimal leverage and high equity ratio, indicating financial stability. Cash flow management is positive, though 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	7.43M	7.36M	6.60M	9.56M	6.59M	2.80M
Gross Profit	3.22M	3.30M	3.11M	5.98M	3.96M	1.02M
EBITDA	4.61M	4.48M	3.97M	6.69M	4.33M	1.14M
Net Income	1.67M	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	2.75M	1.75M	2.47M	2.24M	1.37M	57.81K
Total Debt	101.59K	126.53K	19.26K	75.63K	129.92K	1.18M
Total Liabilities	1.39M	1.64M	3.07M	987.80K	1.06M	2.01M
Stockholders Equity	19.17M	18.71M	17.63M	16.83M	12.22M	8.82M
Cash Flow
Free Cash Flow	1.90M	853.00K	1.08M	1.20M	1.86M	-885.19K
Operating Cash Flow	4.33M	4.27M	4.43M	6.52M	3.74M	710.05K
Investing Cash Flow	-2.96M	-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: Positive
• Last Price: 10.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MXC, the sentiment is Positive. The current price of 10.2 is above the 20-day moving average (MA) of 8.98, above the 50-day MA of 9.14, and above the 200-day MA of 8.43, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 65.00 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MXC.

Mexco Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	71 Outperform	$18.27M	11.06	9.11%	0.98%	7.26%	40.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BRN	50 Neutral	$12.49M	-1.96	-58.49%	―	-34.85%	-68.02%
BATL	44 Neutral	$18.10M	-0.52	-164.49%	―	-4.08%	-325.73%

Mexco Energy Corporate Events

Mexco Energy Reports Increased Revenues Amid Oil Price Drop

Mexco Energy Corporation reported a net income of $565,457 for the first six months ending September 30, 2025, with operating revenues increasing by 2% compared to the previous year. Despite increased oil production volumes, a 17% decline in average oil prices negatively impacted overall revenues. The company plans to participate in the drilling of 47 wells at an estimated cost of $1.0 million for the fiscal year ending March 31, 2026, and has already expended $450,000 on royalty and mineral interest acquisitions in various counties.

Mexco Energy Holds Annual Stockholders Meeting

On September 9, 2025, Mexco Energy Corporation held its Annual Meeting of Stockholders where key decisions were made, including the election of six directors, ratification of the selection of Weaver and Tidwell, L.L.P. as the independent public accounting firm, and approval of executive compensation. These decisions are expected to impact the company’s governance and financial oversight, potentially influencing its strategic direction and stakeholder confidence.