Company Overview
Mexco Energy Corporation operates as an independent oil and gas company focused on the acquisition, exploration, development, and production of crude oil, natural gas, condensate, and natural gas liquids within the United States. The firm conducts its operations in the Energy sector and specifically within the Oil & Gas E&P industry, which involves upstream activities ranging from drilling to resource extraction. The company maintains a market capitalization of $22.67M and generates annual revenue of $6.92M while employing 2 individuals. These financial figures indicate a small-cap enterprise with a relatively modest revenue base, suggesting a niche operational footprint rather than a dominant market share. The combination of a $22.67M market cap and $6.92M in revenue places the entity in the lower tier of publicly traded energy companies, where capital allocation and operational efficiency are critical survival factors.
Financial Health
The company reported revenue of $6.92M over the trailing twelve months, with a net income of $1.25M and an EBITDA of $4.17M. The significant gap between revenue of $6.92M and net income of $1.25M reveals a cost structure where operating expenses consume approximately 81.9% of total revenue, leaving a profit margin of 18.1%. Free cash flow stands at $1.33M, which demonstrates that the company generates sufficient cash from operations to cover its capital expenditures and maintain financial flexibility without relying on external financing. Gross margin is reported at 80.2%, while the operating margin is 6.6% and the profit margin is 18.1%, indicating that while the core commodity sales are highly profitable, significant operating costs reduce the bottom line. The firm holds $2.27M in cash against a debt level of $88,705, resulting in a debt-to-equity ratio of 0.46, which suggests a conservative balance sheet with minimal leverage. This conservative stance is further supported by a current ratio of 12.34, indicating a robust ability to meet short-term obligations with available current assets. Return on equity is 6.7% and return on assets is 4.7%, metrics that reveal management's effectiveness in generating returns relative to the shareholders' equity and the total asset base employed in the business.
Valuation Assessment
The trailing twelve-month P/E ratio is 18.47, while the forward P/E is not available, implying that analysts cannot currently project a forward earnings trajectory or that future earnings estimates are insufficient to calculate a meaningful forward multiple. The price-to-book ratio stands at 1.18, indicating that the market values the company at a slight premium of 18% over its net book value. The price-to-sales ratio is 3.27 and the EV/EBITDA is 4.92, suggesting that the market is willing to pay a moderate multiple for sales and a low multiple for earnings before interest, taxes, depreciation, and amortization relative to peers. The 52-week high is $16.48 and the 52-week low is $5.89, providing a trading range of $10.59 where the current price sits at a specific point within this volatility band. The beta value is 0.33, which indicates that the stock exhibits low price volatility relative to the broader market, moving with significantly less intensity than the overall index.
Growth & Income
Revenue growth year-over-year is -26.8% and earnings growth year-over-year is -90.9%, showing that earnings are contracting at a much faster rate than revenue, which implies increasing cost pressures or declining unit economics. The company offers a dividend yield of 0.9% with a payout ratio of 16.7%, suggesting that the dividend is paid from a small portion of earnings. Given the low payout ratio, the company retains the majority of its earnings, though the significant decline in earnings growth presents a challenge to the sustainability of this payout ratio over time. The overall growth and income profile is characterized by negative earnings growth alongside a modest dividend yield, reflecting a transitional phase for the small-cap energy operator.