📊 MXC Key Takeaways
Is Mexco Energy Corp. (MXC) a Good Investment?
MEXCO Energy demonstrates fortress-like financial stability with exceptional liquidity (9.82x current ratio), minimal leverage (0.04x D/E), and strong free cash flow generation (57.6% FCF margin). However, accelerating earnings decline (-23.7% net income YoY vs -8.1% revenue decline) signals operational deterioration despite solid 19.9% net margins, warranting a cautious stance pending evidence of turnaround.
MEXCO Energy remains profitable and highly cash-generative, supported by a debt-light balance sheet, ample liquidity, and strong interest coverage. However, declining revenue and earnings indicate weakening operating momentum, while unavailable capital-expenditure data makes the reported free cash flow less reliable as a measure of sustainable growth quality.
Mexco Energy Corp. Key Strengths (MXC)
- Exceptional balance sheet strength with 9.82x current ratio and minimal debt ($778K long-term debt vs $20M equity)
- Robust cash flow generation with $3.8M operating cash flow and 57.6% FCF margin providing financial flexibility
- High profitability margins (19.9% net margin, 19.4% operating margin) with minimal financial risk (242.8x interest coverage)
- Strong financial position with a 9.82x current ratio and only 0.04x debt-to-equity
- Healthy profitability with a 19.4% operating margin and 19.9% net margin
- Operating cash flow of $3.78M substantially exceeds net income, indicating strong cash conversion
MXC Stock Risks: Mexco Energy Corp. Investment Risks
- Deteriorating operational performance with net income declining 23.7% YoY while revenue declines only 8.1%, indicating margin compression or rising costs
- Weak returns on capital (6.5% ROE, 6.0% ROA) fail to justify equity investment despite strong cash position
- Absence of insider buying activity combined with declining fundamentals signals lack of management confidence in company trajectory
- Revenue declined 8.1% year over year, signaling weaker top-line momentum
- Net income fell 23.7%, substantially faster than revenue, indicating unfavorable earnings sensitivity
- Missing capital-expenditure data may materially overstate reported free cash flow and obscures reinvestment needs
Key Metrics to Watch
- Revenue trend and margin sustainability to confirm whether decline is cyclical (commodity prices) or structural (reserve depletion)
- Operating cash flow relative to net income to assess cash quality and working capital efficiency
- Capital allocation decisions and whether cash reserves are deployed for growth or returned to shareholders
- Revenue and net income growth
- Capital expenditure and adjusted free cash flow
Mexco Energy Corp. (MXC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 57.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 9.82x 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 shown modest growth of 8% over the 5-year period. The most recent EPS of $0.81 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 Grade of B from Claude (B) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MXC's key strengths?
Claude: Exceptional balance sheet strength with 9.82x current ratio and minimal debt ($778K long-term debt vs $20M equity). Robust cash flow generation with $3.8M operating cash flow and 57.6% FCF margin providing financial flexibility. ChatGPT: Strong financial position with a 9.82x current ratio and only 0.04x debt-to-equity. Healthy profitability with a 19.4% operating margin and 19.9% net margin.
What are the risks of investing in MXC?
Claude: Deteriorating operational performance with net income declining 23.7% YoY while revenue declines only 8.1%, indicating margin compression or rising costs. Weak returns on capital (6.5% ROE, 6.0% ROA) fail to justify equity investment despite strong cash position. ChatGPT: Revenue declined 8.1% year over year, signaling weaker top-line momentum. Net income fell 23.7%, substantially faster than revenue, indicating unfavorable earnings sensitivity.
What is MXC's revenue and growth?
Mexco Energy Corp. reported revenue of $6.6M.
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 $0.63.
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 grade reflects both perspectives for balanced insights.
What is MXC's fundamental grade?
Based on our AI fundamental analysis in August 2026, Mexco Energy Corp. has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MXC stock overvalued or undervalued?
Valuation metrics for MXC: ROE of 6.5% (sector avg: 14%), net margin of 19.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is MXC's AI grade for 2026?
Our dual AI analysis gives Mexco Energy Corp. a combined B grade 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 $3.8M, with capital expenditures of N/A. FCF margin is 57.6%.
How does MXC compare to other Energy stocks?
Vs Energy sector averages: Net margin 19.9% (avg: 12%), ROE 6.5% (avg: 14%), current ratio 9.82 (avg: 1.3).