Mexco Energy (MXC) AI Stock Analysis

• Market Cap: $21.50M
• Dividend Yield: 0.96%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 14.0
• Beta (1Y): -0.19
• 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: 0.88
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 4.09
• 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: 78 Outperform
• Price Target: $12.50 ▲(15.31% Upside)

The score is driven primarily by strong financial quality (exceptionally low leverage and solid cash generation) and supportive technical trends (price above key moving averages, positive MACD). These positives are tempered by weakening revenue momentum and a modest dividend yield, resulting in a solid but not top-tier overall score.

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt (debt-to-equity ~0.6% TTM) and growing equity provide durable financial flexibility. This reduces solvency risk, supports funding of drilling/acquisitions from internal resources, and helps the company withstand prolonged commodity downturns without distress.

Strong operating cash generation

Operating cash flow persistently exceeds net income and free cash flow improved in the TTM period, indicating high earnings quality. Reliable cash generation supports reinvestment in wells, mineral acquisitions and reduces dependence on external financing over the medium term.

Focused Permian Basin asset base

Concentration in the Permian Basin gives structural advantages: high-quality reservoir access, established midstream and service infrastructure, and potential for scaled drilling programs. A focused asset base can sustain production economics across cycles if execution remains consistent.

Negative Factors

Declining revenue momentum

A roughly 20% TTM revenue decline signals weaker top-line momentum and heightened commodity exposure. Sustained revenue pressure can compress reinvestment capacity, reduce economies of scale, and limit ability to grow production absent a recovery in realized oil and gas prices.

Volatile free cash flow and lumpy capex

Multi-year variability in free cash flow, including past negative FCF, indicates capex timing and commodity swings drive cash outcomes. This unpredictability complicates capital allocation, dividend/return policies and can force opportunistic financing during adverse periods.

Small scale and limited operational resources

A very small employee base suggests limited internal capacity and scale. Small scale increases reliance on partners or contractors for drilling and operations, concentrates execution risk, and may constrain the company's ability to pursue larger, rapid-growth opportunities.

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

Very strong balance sheet with minimal leverage and solid cash generation (operating cash flow exceeding net income). Profitability remains healthy, but revenue is down (~20% TTM) and results have normalized from the stronger 2022–2023 cycle, highlighting commodity sensitivity.

Income Statement

Profitability remains strong in 2025, with TTM (Trailing-Twelve-Months) net margin around 22% and healthy operating profitability, indicating a solid cost structure for the business. However, revenue momentum has turned negative (TTM revenue down ~20%), and margins are well below the peak levels seen in 2022–2023, highlighting meaningful cyclicality/commodity sensitivity and a less favorable pricing environment versus prior years.

Balance Sheet

The balance sheet is exceptionally conservative: debt is minimal relative to equity (debt-to-equity ~0.6% in TTM (Trailing-Twelve-Months)), providing substantial financial flexibility and low solvency risk. Equity has grown materially since 2021, and returns on equity are currently around 9%—healthy, though down sharply from the outsized 2022–2023 levels, reflecting normalization in profitability rather than leverage-driven risk.

Cash Flow

Cash generation is strong: TTM (Trailing-Twelve-Months) operating cash flow is robust and comfortably exceeds net income, supporting earnings quality. Free cash flow improved sharply in TTM (Trailing-Twelve-Months) versus the prior annual period, but the multi-year pattern shows variability (including negative free cash flow in 2021 and uneven free cash flow conversion in several years), consistent with a volatile operating environment and/or lumpy investment spending.

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: 10.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 10.84 is above the 20-day moving average (MA) of 10.57, above the 50-day MA of 9.88, and above the 200-day MA of 8.71, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.88 is Neutral, 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	78 Outperform	$21.50M	14.00	9.11%	0.96%	7.26%	40.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BATL	48 Neutral	$62.70M	-1.14	-164.49%	―	-4.08%	-325.73%
BRN	47 Neutral	$13.79M	-1.60	―	―	-32.91%	-23.72%

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.

The most recent analyst rating on (MXC) stock is a Buy with a $10.50 price target. To see the full list of analyst forecasts on Mexco Energy stock, see the MXC Stock Forecast page.