📊 MXC Key Takeaways
Is Mexco Energy Corp. (MXC) a Good Investment?
MEXCO demonstrates fortress-like financial health with minimal debt (0.04x debt/equity), exceptional liquidity (12.34x current ratio), and strong free cash flow generation (59.4% FCF margin). However, returns are severely constrained by small scale ($4.9M revenue), with ROE of 3.2% and ROA of 3.0% indicating poor asset utilization despite solid profitability margins. Growth trajectory is modest and the absence of disclosed capital expenditure raises questions about infrastructure investment sustainability.
Fundamentals are solid with double-digit revenue and EPS growth, mid-teens operating margins, and very strong free cash flow. A debt-light balance sheet with exceptional liquidity and high interest coverage lowers financial risk. Visibility is tempered by low ROE and the capital intensity/decline profile of E&P, making sustainability of recent cash conversion the key question.
Why Buy Mexco Energy Corp. Stock? MXC Key Strengths
- Fortress balance sheet: 93.8% equity-financed with 0.04x debt/equity and 150.2x interest coverage
- Exceptional liquidity and cash conversion: 12.34x current ratio and 59.4% free cash flow margin indicates robust working capital management
- Dual-track growth: Revenue up 11.4% YoY with EPS growing 30.6% YoY demonstrates improving profitability per share
- Very strong liquidity and low leverage (current ratio 12.3x, D/E 0.04x)
- Healthy profitability (15.9% operating margin; 12.5% net margin) with EPS growth
- Robust cash generation (FCF margin ~59%) supporting reinvestment flexibility
MXC Stock Risks: Mexco Energy Corp. Investment Risks
- Abysmal capital efficiency: 3.2% ROE and 3.0% ROA indicate severe asset underutilization despite adequate balance sheet
- Micro-cap operational constraints: $4.9M annual revenue limits competitive positioning, economies of scale, and diversification in cyclical energy sector
- Critical reporting gap: No disclosed capital expenditures raise concerns about maintenance of production infrastructure and future cash flow sustainability
- Commodity price volatility and natural production decline risk
- Small scale and potential asset/concentration risk can amplify variability
- Sustainment capex and reserve replacement needs may reduce FCF durability
Key Metrics to Watch
- Capital expenditure levels and trends - essential for assessing asset replacement and reserve replacement
- Return on equity trajectory - 3.2% ROE must improve to demonstrate productive asset deployment
- Operating cash flow stability through commodity price cycles - validate sustainability of 59.4% FCF margin
- Reserve replacement ratio and production volumes
- Capital expenditures relative to operating cash flow
Mexco Energy Corp. (MXC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 59.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 12.34x current ratio provides a solid financial cushion.
MXC Profit Margin, ROE & Profitability Analysis
MXC vs Energy Sector: How Mexco Energy Corp. Compares
How Mexco Energy Corp. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mexco Energy Corp. Stock Overvalued? MXC Valuation Analysis 2026
Based on fundamental analysis, Mexco Energy Corp. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mexco Energy Corp. Balance Sheet: MXC Debt, Cash & Liquidity
MXC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mexco Energy Corp.'s revenue has grown significantly by 163% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.62 reflects profitable operations.
MXC Revenue Growth, EPS Growth & YoY Performance
MXC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.4M | $50.2K | $0.02 |
| Q2 2026 | $1.7M | $242.0K | $0.15 |
| Q3 2025 | $1.7M | $269.4K | $0.16 |
| Q2 2025 | $1.4M | $269.4K | $0.12 |
| Q1 2025 | $1.7M | $242.0K | $0.12 |
| Q3 2024 | $1.7M | $269.4K | $0.16 |
| Q2 2024 | $1.4M | $269.4K | $0.12 |
| Q3 2023 | $1.6M | $395.0K | $0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mexco Energy Corp. Dividends, Buybacks & Capital Allocation
MXC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mexco Energy Corp. (CIK: 0000066418)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MXC
What is the AI rating for MXC?
Mexco Energy Corp. (MXC) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MXC's key strengths?
Claude: Fortress balance sheet: 93.8% equity-financed with 0.04x debt/equity and 150.2x interest coverage. Exceptional liquidity and cash conversion: 12.34x current ratio and 59.4% free cash flow margin indicates robust working capital management. ChatGPT: Very strong liquidity and low leverage (current ratio 12.3x, D/E 0.04x). Healthy profitability (15.9% operating margin; 12.5% net margin) with EPS growth.
What are the risks of investing in MXC?
Claude: Abysmal capital efficiency: 3.2% ROE and 3.0% ROA indicate severe asset underutilization despite adequate balance sheet. Micro-cap operational constraints: $4.9M annual revenue limits competitive positioning, economies of scale, and diversification in cyclical energy sector. ChatGPT: Commodity price volatility and natural production decline risk. Small scale and potential asset/concentration risk can amplify variability.
What is MXC's revenue and growth?
Mexco Energy Corp. reported revenue of $4.9M.
Does MXC pay dividends?
Mexco Energy Corp. pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.
Where can I find MXC SEC filings?
Official SEC filings for Mexco Energy Corp. (CIK: 0000066418) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MXC's EPS?
Mexco Energy Corp. has a diluted EPS of $0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MXC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Mexco Energy Corp. has a BUY rating with 66% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MXC stock overvalued or undervalued?
Valuation metrics for MXC: ROE of 3.2% (sector avg: 14%), net margin of 12.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MXC stock in 2026?
Our dual AI analysis gives Mexco Energy Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MXC's free cash flow?
Mexco Energy Corp.'s operating cash flow is $2.9M, with capital expenditures of N/A. FCF margin is 59.4%.
How does MXC compare to other Energy stocks?
Vs Energy sector averages: Net margin 12.5% (avg: 12%), ROE 3.2% (avg: 14%), current ratio 12.34 (avg: 1.3).