Mexco Energy Corp (MXC) stock analysis

P/E above its 5-year median

Mexco Energy's P/E of 14.7 is above its own 5-year median of 11.6.

P/E above the industry

Mexco Energy's P/E of 14.7 is above the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA above its 5-year median

Mexco Energy's EV/EBITDA of 4.6 is above its 5-year median of 4.5.

P/B below the industry

Mexco Energy's price-to-book of 0.93 is below the Crude Petroleum and Natural Gas median of 1.33.

Trading below fair value

The share price of $9.24 is below our fair value estimate of $11.64.

Margin of safety over 20%

The price is 20.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -11.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -33.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -23.7% over the last twelve months, against a 5-year average of 53.0% a year.

Growing slower than the industry

Revenue grew -8.1% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance unchanged

The latest outlook (fiscal year ending March 31, 2027 estimated aggregate cost, Aug 12, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 6.7% over the last twelve months and averaged 16.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Mexco Energy's return on equity of 6.7% is above the Crude Petroleum and Natural Gas median of 5.5%.

Earnings grew over 5 years

Net income grew 53.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 19.9% over the last twelve months, against a 5-year average of 31.3%.

Net margin above the industry

Mexco Energy's net margin of 19.9% is above the Crude Petroleum and Natural Gas median of 3.8%.

No debt

Mexco Energy has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 290.2 times.

Short-term assets cover short-term debts

Current assets are 6.16 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.44; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Mexco Energy paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Mexco Energy yields 1.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 15.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.