Mexco Energy (MXC) AI Stock Analysis

• Market Cap: $13.81M
• Dividend Yield: 1.48%
• Average Volume (3M): 2.71K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.10
• Revenue Growth: 2.12%
• EPS Growth: -30.63%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.63
• Shares Outstanding: 2,046,000
• 10 Day Avg. Volume: 2,793
• 30 Day Avg. Volume: 2,707
• PEG Ratio: <0.01
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.38
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 4.12
• Enterprise Value/Ebitda: 0.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ―

Mexco Energy's overall stock score reflects a strong financial foundation with solid profitability and low leverage, balanced against bearish technical indicators and moderate valuation. The company's financial stability and improving cash flow are offset by negative market momentum and the lack of dividend yield, resulting in a cautious yet balanced outlook.

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 makes money through the sale of crude oil and natural gas extracted from its properties. The company's revenue model is primarily based on the production and sale of hydrocarbons, which are sold to various customers, including refiners, marketers, and other producers. Key revenue streams include income from its working interests in oil and gas wells, as well as royalties from its royalty interests. Mexco Energy's earnings are influenced by factors such as commodity prices, production levels, and operational efficiency. The company may also engage in strategic partnerships or joint ventures to enhance exploration and production capabilities, contributing to its overall revenue generation.

Mexco Energy Financial Statement Overview

Summary

Mexco Energy demonstrates solid financial health with strong profitability metrics and a stable balance sheet. The company effectively manages its operations, as indicated by strong margins and low leverage. Despite past revenue fluctuations and cash flow volatility, recent improvements suggest a positive trajectory. The overall financial position is sound, with strengths in profitability and stability, though attention to cash flow consistency is advisable.

Income Statement

Mexco Energy's income statement shows a strong gross profit margin and consistent net income, indicating profitability. The gross profit margin for the TTM is approximately 57.06%, and the net profit margin is around 18.73%, both healthy figures. However, revenue growth has been inconsistent, with a notable decline in 2023, but recovery is seen in the TTM. EBIT and EBITDA margins are robust, showing operational efficiency despite revenue fluctuations.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 92.29% in the TTM, suggesting financial stability and low leverage. The debt-to-equity ratio is low, at approximately 0.01, minimizing financial risk. Return on equity is reasonable at around 7.44%, indicating effective use of equity to generate profits. Overall, the balance sheet is strong, with a healthy balance between assets and liabilities.

Cash Flow

Cash flow analysis reveals positive operating cash flow and improving free cash flow, with a growth rate of 95.74% in the TTM. The operating cash flow to net income ratio is strong, indicating cash generation efficiency. However, fluctuating free cash flow in past years suggests volatility in capital expenditure and investment activities. The company shows improvement in cash flow management, but some instability remains.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
7.16M	6.60M	9.56M	6.59M	2.80M	2.74M
	Gross Profit
2.99M	3.11M	5.98M	3.96M	1.02M	970.09K
	EBIT
1.67M	1.84M	4.83M	2.88M	158.70K	-61.82K
	EBITDA
4.14M	3.97M	6.72M	4.36M	1.14M	819.21K
	Net Income Common Stockholders
1.34M	1.34M	4.66M	2.86M	102.70K	-137.13K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
910.00K	2.47M	2.24M	1.37M	57.81K	34.38K
	Total Assets
19.54M	19.06M	17.82M	13.28M	10.83M	10.07M
	Total Debt
138.58K	19.26K	75.63K	129.92K	1.18M	834.13K
	Net Debt
-771.43K	-2.45M	-2.16M	-1.24M	1.12M	799.75K
	Total Liabilities
1.51M	1.43M	987.80K	1.06M	2.01M	1.71M
	Stockholders Equity
18.03M	17.63M	16.83M	12.22M	8.82M	8.36M
Cash Flow		Free Cash Flow
716.99K	1.08M	1.20M	1.86M	-885.19K	-831.18K
	Operating Cash Flow
4.00M	4.43M	6.52M	3.74M	710.05K	864.96K
	Investing Cash Flow
-5.72M	-3.42M	-5.44M	-1.71M	-1.39M	-1.74M
	Financing Cash Flow
-947.78K	-779.72K	-209.81K	-721.43K	701.01K	782.73K

Mexco Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 7.99 is above the 20-day moving average (MA) of 6.89, above the 50-day MA of 6.84, and below the 200-day MA of 10.26, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 52.38 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	63 Neutral	$13.81M	12.59	7.57%	1.48%	2.12%	-30.63%
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
BRN	45 Neutral	$12.47M	―	-49.65%	―	-25.50%	-85.87%
HUSA		$6.89M	―	-108.38%	―	―	―
MARPS		$7.54M	10.37	77.41%	11.78%	―	―
MTR		$9.41M	27.70	10.96%	7.57%	―	―
BATL	46 Neutral	$22.05M	―	36.17%	―	-6.23%	45.67%