Mexco Energy (MXC) AI Stock Analysis

• Market Cap: $21.79M
• Dividend Yield: 0.96%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 17.5
• Beta (1Y): -0.18
• 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: 0.89
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: 4.51
• 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: $12.50 ▲(15.31% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by strong financial strength (very low leverage and solid recent cash flow), supported by a constructive longer-term price trend. Offsetting factors are cooling profitability versus prior highs, a negative corporate update showing sharply lower quarterly earnings amid weaker oil prices, and only average valuation support due to a low dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage gives durable financial flexibility: it reduces bankruptcy risk during oil price troughs, preserves capacity to fund drilling or acquisitions from internal resources, and lowers financing costs, supporting multi‑quarter resilience and strategic optionality.

Solid trailing cash generation

Robust trailing operating and free cash flow enable self‑funded capital programs and reduce reliance on external financing. Sustained cash conversion supports reinvestment in wells, royalty purchases, and potential shareholder returns, improving long‑run operational independence.

Active reinvestment & development program

Ongoing capex and royalty acquisitions expand the production base and diversify asset exposure across counties and states. This organic development can increase reserve life and future volumes, making long‑term revenue generation less reliant on one-off transactions.

Negative Factors

High oil revenue concentration

With ~77% of revenue from oil, the business is structurally exposed to oil price swings. Prolonged weak oil prices can compress margins, reduce cash flow available for reinvestment, and force cutbacks, making earnings and capex plans highly cyclical.

Marked earnings and revenue volatility

Large YoY swings in net income and revenue reflect commodity sensitivity and operational volume variability. This volatility undermines predictability of free cash flow and returns, complicating long‑term planning for capital allocation, dividends, or debt reduction.

Small scale and limited revenue base

Modest revenue scale limits economies of scale, bargaining power, and diversification. Smaller firms face higher per‑well overhead, less reserve diversification, and reduced ability to absorb unexpected capex or price shocks, increasing execution and market risks over months.

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

Overall fundamentals are strong, led by an exceptionally low-debt balance sheet (Balance Sheet Score: 92) and solid recent cash generation (Cash Flow Score: 74). The main offset is moderating profitability and revenue versus the 2022–2023 peak period (Income Statement Score: 68), highlighting earnings volatility typical for the sector.

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: Negative
• 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 above the 20-day moving average (MA) of 10.76, above the 50-day MA of 10.52, and above the 200-day MA of 9.08, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.56 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	71 Outperform	$21.79M	17.54	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	$67.14M	-1.22	-164.49%	―	-4.08%	-325.73%
BRN	47 Neutral	$12.69M	-1.66	―	―	-32.91%	-23.72%

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.