Mexco Energy Corporation Common Stock (MXC)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $1 million in annual free cash flow (7.1% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 9.7 confirms minimal bankruptcy risk and strong solvency

Concerns

• Revenue declining at 26.8% year-over-year signals potential demand weakness or market share loss

AI Analysis

Mexco Energy Corporation Common Stock is a micro-cap energy company valued at $19 million. Revenue stands at $7 million. From a quality standpoint, Mexco shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 9.7 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 15.5x earnings, with a modest 19% margin of safety vs Graham Number. Growth dynamics show revenue growing at -26.8% and profit growth of -89.3%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1 million in annual free cash flow (7.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer