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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
7.0%
Sector: 6.7%
Dividend Analysis audit
GROWTH
1.09%
Trailing Yield
$1.09
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
16%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, MEXCO ENERGY CORP (MXC) receives a "Hold" rating with a composite score of 47.2/100, ranked #1759 out of 4446 stocks. Key factor scores: Quality 50/100, Value 47/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
MEXCO ENERGY CORP (MXC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MEXCO ENERGY CORP Do?
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 6,400 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, 2021, the company's total estimated proved reserves were approximately 1.504 million barrels of oil equivalent. It also owned leasehold mineral and royalty interests in approximately 3,169 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. MEXCO ENERGY CORP (MXC) is classified as a micro-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Nicholas C. Taylor and employs approximately 5 people, headquartered in Denver, Texas. With a market capitalization of $20M, MXC is one of the notable companies in the Energy sector.
MEXCO ENERGY CORP (MXC) Stock Rating — Hold (April 2026)
As of April 2026, MEXCO ENERGY CORP receives a Hold rating with a composite score of 47.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MXC ranks #1,759 out of 4,446 stocks in our coverage universe. Within the Energy sector, MEXCO ENERGY CORP ranks #105 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MXC Stock Price and 52-Week Range
MEXCO ENERGY CORP (MXC) currently trades at $9.41. The stock gained $0.16 (1.7%) in the most recent trading session. The 52-week high for MXC is $16.48, which means the stock is currently trading -42.9% from its annual peak. The 52-week low is $5.89, putting the stock 59.8% above its annual trough. Recent trading volume was 5K shares, suggesting relatively thin trading activity.
Is MXC Overvalued or Undervalued? — Valuation Analysis
MEXCO ENERGY CORP (MXC) carries a value factor score of 47/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 14.39x, compared to the Energy sector average of 19.63x — a discount of 27%. The price-to-book ratio stands at 1.02x, versus the sector average of 1.64x. The price-to-sales ratio is 2.71x, compared to 0.47x for the average Energy stock. On an enterprise value basis, MXC trades at 12.55x EV/EBITDA, versus 3.50x for the sector.
Overall, MXC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
MEXCO ENERGY CORP Profitability — ROE, Margins, and Quality Score
MEXCO ENERGY CORP (MXC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 7.0%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 6.6% versus the sector average of 3.7%.
On a margin basis, MEXCO ENERGY CORP reports gross margins of 99.5%, compared to 52.7% for the sector. The operating margin is 21.5% (sector: 10.7%). Net profit margin stands at 18.7%, versus 6.4% for the average Energy stock. Revenue growth is running at 0.4% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MXC Debt, Balance Sheet, and Financial Health
MEXCO ENERGY CORP has a debt-to-equity ratio of 7.0%, compared to the Energy sector average of 55.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 8.23x, indicating strong short-term liquidity.
MXC has a beta of -0.61, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for MEXCO ENERGY CORP is 43/100, reflecting average volatility within the normal range for its sector.
MEXCO ENERGY CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, MEXCO ENERGY CORP reported revenue of $7M and earnings per share (EPS) of $0.16. Net income for the quarter was $1M. Operating income came in at $2M.
In Q2 2026, MEXCO ENERGY CORP reported revenue of $2M and earnings per share (EPS) of $0.16. Net income for the quarter was $323,506. Revenue grew -0.8% year-over-year compared to Q2 2025. Operating income came in at $362,696.
In Q1 2026, MEXCO ENERGY CORP reported revenue of $2M and earnings per share (EPS) of $0.12. Net income for the quarter was $241,951. Revenue grew 5.0% year-over-year compared to Q1 2025. Operating income came in at $331,726.
In FY 2025, MEXCO ENERGY CORP reported revenue of $7M and earnings per share (EPS) of $0.83. Net income for the quarter was $2M. Revenue grew 11.4% year-over-year compared to FY 2024. Operating income came in at $2M.
Over the past 8 quarters, MEXCO ENERGY CORP has demonstrated a growth trajectory, with revenue expanding from $7M to $7M. Investors analyzing MXC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MXC Dividend Yield and Income Analysis
MEXCO ENERGY CORP (MXC) currently pays a dividend yield of 1.1%. At this yield, a $10,000 investment in MXC stock would generate approximately $$109.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning MXC yields less than the typical sector peer. With a net margin of 18.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
MXC Momentum and Technical Analysis Profile
MEXCO ENERGY CORP (MXC) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 47/100 reflects moderate short selling activity.
MXC vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing MXC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MXC vs S&P 500 (SPY) comparison to assess how MEXCO ENERGY CORP stacks up against the broader market across all factor dimensions.
MXC Next Earnings Date
No upcoming earnings date has been announced for MEXCO ENERGY CORP (MXC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MXC? — Investment Thesis Summary
MEXCO ENERGY CORP presents a balanced picture with arguments on both sides.
In summary, MEXCO ENERGY CORP (MXC) earns a Hold rating with a composite score of 47.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MXC stock.
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Institutional Research Dossier
MEXCO ENERGY CORP (MXC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Mexco Energy Corp (MXC). The company's high profitability metrics, particularly its gross and operating margins, are attractive. However, its small market capitalization, limited revenue, and high valuation multiples relative to the energy sector raise concerns about its long-term growth prospects and overall investment appeal. The company's reliance on a large number of producing wells, many of which are partial interests, introduces operational complexity and potential volatility in production.
While MXC exhibits strong financial health with a robust current ratio and minimal debt, its valuation appears stretched compared to its peers. The company's future performance hinges on its ability to sustain its high margins and effectively manage its diverse portfolio of producing wells. Given the mixed signals from its financial performance and valuation, a Hold rating is warranted until greater clarity emerges regarding its ability to generate consistent and sustainable growth.
Business Strategy & Overview
Mexco Energy Corporation operates as an independent oil and gas company focused on the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. The company's business model centers around owning partial interests in a large number of producing wells across various states, including Texas, New Mexico, Oklahoma, and Louisiana. This diversified geographic presence aims to mitigate risk associated with regional downturns or regulatory changes affecting specific areas.
The company generates revenue primarily through the sale of its produced oil and gas. Its strategy involves acquiring and developing existing wells rather than focusing on large-scale exploration projects. This approach typically requires lower upfront capital expenditures but also limits the potential for discovering significant new reserves. Mexco's reliance on partial interests in wells necessitates effective management of joint operating agreements and coordination with other stakeholders.
Mexco's strategic positioning within the energy sector is that of a small-cap player with a focus on mature assets. This contrasts with larger integrated oil companies that engage in exploration, production, refining, and distribution. The company's size and focus allow it to be nimble in acquiring and optimizing existing wells, but it also exposes it to greater volatility in production and revenue due to its limited scale.
The company's product pipeline is essentially its existing portfolio of producing wells. Unlike companies with active exploration programs, Mexco's growth depends on acquiring additional producing assets or enhancing the output of its current wells through improved operational efficiency or technological upgrades. The company's ability to identify and acquire accretive assets is crucial to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
0.4%
Sector: -1.2%
-134% VS SCTR
Economic Moat Analysis
Mexco Energy Corporation's economic moat is assessed as None. The company operates in a highly competitive industry with limited differentiation in its core product: oil and gas. While it possesses a diversified portfolio of producing wells, this diversification does not translate into a sustainable competitive advantage.
The company lacks significant network effects. The value of its assets does not increase as more customers or producers join its network. Oil and gas are commodities, and their prices are determined by global supply and demand, not by the size or scope of Mexco's operations.
Switching costs are also negligible. Customers can easily switch between different oil and gas suppliers without incurring significant costs or disruptions. This lack of customer loyalty weakens Mexco's ability to command premium prices or retain market share.
While Mexco's high gross margin (99.5%) suggests efficient operations, this is not necessarily indicative of a sustainable cost advantage. The company's revenue is relatively small, and its high margins may be attributable to specific operational efficiencies or favorable market conditions that are not guaranteed to persist. Furthermore, the company's reliance on partial interests in wells introduces operational complexities that could erode its cost advantage over time.
Intangible assets, such as patents or proprietary technology, are not a significant factor in Mexco's business. The company's success depends on its ability to acquire and manage producing wells effectively, but this expertise is not unique or difficult to replicate. Efficient scale is also not a relevant factor, as the company's small size and focus on mature assets do not provide it with a significant cost advantage over larger competitors.
Financial Health & Profitability
Mexco Energy Corporation exhibits a mixed financial profile. The company's revenue for the trailing twelve months (TTM) is $1.73 million, with a net income of $323,506. While the net income is positive, the revenue figure is relatively small, indicating limited scale. The company's EBITDA is $362,696, reflecting its operational profitability.
The company's gross margin of 99.5% and operating margin of 21.5% are significantly higher than the sector averages of 55.1% and 10.6%, respectively. This suggests that Mexco is highly efficient in managing its production costs and generating profits from its operations. However, it's crucial to assess the sustainability of these high margins, as they may be influenced by specific market conditions or operational efficiencies that are not guaranteed to persist.
Mexco's current ratio of 8.23 indicates strong liquidity and the ability to meet its short-term obligations. The company's debt-to-equity ratio is 7.00, which is significantly lower than the sector average of 55.00, suggesting a conservative capital structure and low financial leverage. The absence of total cash and total debt figures in the provided data limits a more comprehensive assessment of the company's balance sheet.
Analyzing the quarterly financial history reveals fluctuating revenue and net income figures. Revenue peaked at $2.58 million in Q3 FY2022 but has since declined to $1.73 million in Q2 FY2026. Net income has also fluctuated, with a high of $4.66 million in FY2023 and a low of $241,951 in Q1 FY2026. These fluctuations highlight the volatility inherent in the oil and gas industry and the impact of commodity price fluctuations on Mexco's financial performance. The absence of free cash flow data prevents a thorough assessment of the company's cash flow generation capabilities.
Valuation Assessment
Mexco Energy Corporation's valuation metrics present a mixed picture. The company's price-to-earnings (P/E) ratio of 73.4x is significantly higher than the sector average of 19.5x, indicating that the stock is trading at a premium relative to its earnings. Similarly, its enterprise value-to-EBITDA (EV/EBITDA) ratio of 16.6x is substantially higher than the sector average of 3.5x, further suggesting that the company is overvalued compared to its peers.
The company's return on equity (ROE) of 7.0% is slightly above the sector average of 6.9%, indicating that it is generating comparable returns on its equity investments. However, the high valuation multiples suggest that investors are pricing in significant future growth potential, which may not be justified given the company's limited revenue and fluctuating financial performance.
Given the absence of free cash flow data, a free cash flow yield analysis is not possible. This limits the ability to assess the company's valuation based on its cash flow generation capabilities. The company's small market capitalization of $24.02 million further complicates the valuation assessment, as small-cap stocks are often subject to greater volatility and valuation swings.
Based on the available data, Mexco Energy appears to be overvalued relative to its earnings and EBITDA. The high valuation multiples suggest that investors are anticipating significant future growth, which may not be realistic given the company's limited scale and the inherent volatility of the oil and gas industry. A more conservative valuation approach may be warranted until the company demonstrates a consistent track record of revenue growth and profitability.
Risk & Uncertainty
Mexco Energy Corporation faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is commodity price volatility. The company's revenue is directly tied to the prices of oil and gas, which are subject to significant fluctuations due to global supply and demand dynamics, geopolitical events, and economic conditions. A sustained decline in oil and gas prices could significantly reduce the company's revenue and profitability.
Another risk is the company's reliance on a large number of producing wells, many of which are partial interests. This introduces operational complexity and potential conflicts with other stakeholders. The company's ability to effectively manage these joint operating agreements and coordinate production activities is crucial to its success. Any disruptions or disagreements could negatively impact the company's output and revenue.
The company's small size and limited revenue also pose a risk. Mexco lacks the scale and resources of larger oil and gas companies, which could limit its ability to compete effectively and respond to changing market conditions. The company's reliance on acquisitions for growth also introduces integration risk, as it must successfully integrate acquired assets into its existing operations.
Regulatory risks are also a concern. The oil and gas industry is subject to extensive environmental regulations and permitting requirements. Changes in these regulations could increase the company's operating costs and limit its ability to develop new wells or maintain existing production levels. Furthermore, the increasing focus on renewable energy sources and the transition away from fossil fuels could pose a long-term threat to the company's business model.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMexco Energy's exceptionally high gross and operating margins demonstrate superior operational efficiency and profitability compared to its peers, suggesting a strong competitive advantage.
BULL VIEWThe company's debt-free balance sheet and high current ratio provide significant financial flexibility and resilience, allowing it to weather commodity price downturns and pursue strategic acquisitions.
The Bear Case
BEAR VIEWMexco Energy's extremely high P/E and EV/EBITDA ratios indicate significant overvaluation, making it vulnerable to a correction if earnings fail to meet lofty expectations.
BEAR VIEWThe company's small revenue base and reliance on a large number of producing wells expose it to significant operational and financial risks, limiting its growth potential and increasing its vulnerability to commodity price fluctuations.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MXC and 4,400+ other equities.
MEXCO ENERGY CORP exhibits a 168% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.6%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
99.5%
Sector: 52.7%
Operating Margin
Core business profitability
21.5%
Sector: 10.7%
Net Margin
Bottom-line profitability
18.7%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta-42%
Income Projection audit
A $10,000 investment would generate approximately $109 annually in dividends at the current trailing rate.
