Mexco Energy Corporation (MXC) AI Stock Analysis
MXC AI stock analysis summary
AI ResearchMexco Energy Corporation is an independent oil and gas exploration and production company based in Midland, Texas. For FY2026, the company generated $6.6M in revenue and $1.3M in net income, delivering free cash flow of $1.6M. Mexco maintains a debt-free profile on a net basis, holding total debt of $62,041 against net cash of $1.2M as of June 30, 2026.
- Market cap
- $20.1M
- Revenue (TTM)
- $6.8M
- P/E
- 13.2x fwd 15.8x
- 1Y return
- 6.5% S&P 500 16.8%
- Avg. target
- $0.00
Bull case
- Mexco Energy maintains an unleveraged balance sheet with net cash of $1.2M, total debt of $62,041, and a debt-to-equity ratio of 0.00 as of June 30, 2026.
- For the quarter ended June 30, 2026, quarterly earnings grew 103.0% year-over-year alongside quarterly revenue growth of 12.9%.
- The stock trades at an EV to EBITDA ratio of 4.7x, presenting a discount to the US-listed Energy peer median of 8.0x.
Bear case
- Revenue contracted 10.8% in FY2026 to $6.6M, falling below FY2023 levels of $9.6M and FY2025 levels of $7.4M.
- Mexco's 5-year share price return of -11.2% has substantially lagged the broader market return of 83.0% recorded by the S&P 500 (SPY).
- At a price-to-sales valuation of 3.0x, Mexco trades at a premium to the US-listed Energy peer median of 1.8x.
What Mexco Energy does
Established in 1972 and originally known as Miller Oil Company before rebranding in April 1980, Mexco Energy Corporation operates as an independent exploration and production entity in the oil and gas sector. Headquartered in Midland, Texas, the company specializes in acquiring, exploring, developing, and producing natural gas, crude oil, condensate, and natural gas liquids across various United States regions. Mexco Energy holds partial interests in approximately 6,300 gross producing wells located across states including Texas, New Mexico, Oklahoma, and Louisiana. Its assets also feature leasehold mineral rights and royalties covering approximately 2,970 net acres, alongside estimated proved reserves of approximately 1.616 million barrels of oil equivalent reported as of March 31, 2022.
Growth and profitability
Over the five-year period from FY2021 to FY2026, Mexco Energy generated a revenue CAGR of 18.6%. Revenue reached $9.6M in FY2023 with net income of $4.7M, before falling to $6.6M in FY2024 and rebounding to $7.4M in FY2025. In FY2026, revenue fell 10.8% to $6.6M, producing net income of $1.3M, an operating margin of 31.8%, and a net margin of 19.9%. Free cash flow rose to $1.6M in FY2026 from $853,005 in FY2025. Over the trailing twelve months, revenue totaled $6.8M with an operating margin of 28.6%. For the latest quarter ended June 30, 2026, quarterly revenue increased 12.9% year-over-year while quarterly earnings expanded by 103.0%.
Balance sheet and cash flow
As of June 30, 2026, Mexco Energy held $1.3M in cash and short-term investments against total debt of $62,041, resulting in net cash of $1.2M. The company operates with a debt-to-equity ratio of 0.00 and a current ratio of 6.16, backed by shareholders' equity of $20.3M and total assets of $22.2M. In FY2026, operating cash flow stood at $3.8M. Capital allocation in FY2026 included capital expenditures of $2.2M and dividends paid of $204,600, while the company's share count was reduced by 4.4% over 5 years.
Valuation and performance
Mexco Energy trades at a market capitalization of $20.1M and an enterprise value of $21.1M. Its trailing P/E of 13.2x sits below the 15.0x median of its US-listed Energy peers, though its forward P/E of 15.8x stands above the peer median of 12.7x. The company commands an EV to EBITDA multiple of 4.7x compared to the peer median of 8.0x, alongside a price-to-sales multiple of 3.0x versus 1.8x for peers. Over the past year, Mexco's stock rose 6.5%, underperforming the S&P 500 (SPY) gain of 16.8%. Over a 5-year span, the stock generated a return of -11.2% versus 83.0% for SPY.
MXC dividend
Mexco Energy Corporation pays an annual forward dividend of $0.10 per share, which equates to a dividend yield of 1.01%. The company has sustained dividend distributions for 4 consecutive years and maintains a payout ratio of 13.3%. Its most recent ex-dividend date occurred on June 15, 2026, following total dividends paid of $204,600 in FY2026.
What analysts expect
Mexco Energy Corporation currently has no recorded analyst buy, hold, or sell consensus ratings. The recorded mean price target is $0.00 compared to the last close price of $9.89 on October 16, 2026. Mexco reported quarterly earnings growth of 103.0% year-over-year in its latest quarter ended June 30, 2026. The company's next earnings date is scheduled for November 11, 2026.
Key risks and what to watch
- Operating margins show substantial variability, shifting from 50.6% in FY2023 down to 26.5% in FY2025 and 31.8% in FY2026.
- The company operates on an exceptionally small scale with a market capitalization of $20.1M and a workforce of 2 employees.
- Voting influence is heavily concentrated with insiders owning 58.7% of the equity, leaving institutional ownership at 12.6%.
- Free cash flow generation has fluctuated widely in recent periods, ranging from $1.9M in FY2022 to $853,005 in FY2025 and $1.6M in FY2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MXC AI stock analysis
This page is an AI-written research summary of Mexco Energy Corporation (MXC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MXC income statement, MXC balance sheet, MXC key metrics, MXC chart. See the MXC stock overview for the latest quote and news.
MXC AI stock analysis FAQ
Does Mexco Energy pay a dividend?
Yes, Mexco Energy pays an annual forward dividend of $0.10 per share, resulting in a dividend yield of 1.01%. The company has distributed dividends for 4 consecutive years with a payout ratio of 13.3%.
What is Mexco Energy's debt situation?
Mexco Energy had total debt of $62,041 and cash and short-term investments of $1.3M as of June 30, 2026. This gives the company net cash of $1.2M, a current ratio of 6.16, and a debt-to-equity ratio of 0.00.
What are Mexco Energy's oil and gas assets?
Mexco Energy owns partial interests in approximately 6,300 gross producing wells across Texas, New Mexico, Oklahoma, Louisiana, and other states. The company held estimated proved reserves of approximately 1.616 million barrels of oil equivalent as of March 31, 2022, and leasehold mineral rights covering approximately 2,970 net acres.
Who are the major owners of Mexco Energy?
Insiders hold 58.7% of Mexco Energy's shares, while institutional investors hold 12.6%. The company's short interest stands at 0.3% of the float.
When is Mexco Energy's next earnings report?
Mexco Energy is scheduled to release its next financial results on November 11, 2026.