Mexco EnergyMXC -3.51%71 Gross Margin % is 30.13% as of Dec. 2025, which is 16% below its 10-year median of 35.95. GuruFocus rates MXC with a GF Score™ of 71/100 and a GF Value™ of $10.06 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 867 Oil & Gas companies, Mexco Energy ranks better than 70.13% on this metric.
The historical rank and industry rank for Mexco Energy's Gross Margin % or its related term are showing as below:
MXC'
s Gross Margin % Range Over the Past 10 Years
Min: -12.18 Med: 35.95 Max: 62.61
Current: 41.27
During the past 13 years, the highestGross Margin % of Mexco Energy was 62.61%. The lowest was -12.18%. And the median was 35.95%.
MXC's Gross Margin % is ranked better than 70.13% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs MXC: 41.27
Mexco Energy had a gross margin of 30.13% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Mexco Energy was 5.80% per year.
Mexco Energy (AMEX:MXC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Mexco Energy had a gross margin of 30.13% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Mexco Energy Gross Margin % Related Terms
Mexco Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Mexco Energy's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, Mexco Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mexco Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Mexco Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mexco Energy's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Mexco Energy (MXC) has a Gross Margin % of 30.13% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Mexco Energy and its competitors. This is 16% below median its historical median of 35.95. According to the industry distribution chart, Mexco Energy ranks #259 out of 867 companies in the Oil & Gas industry, placing it in the top 29.9%.
Is Mexco Energy's Gross Margin % too high?
Mexco Energy's current Gross Margin % of 30.13% is 16% below median its 10-year median of 35.95. The Oil & Gas industry median Gross Margin % is 25.70. Mexco Energy's value of 30.13% is 17.2% above this industry median. Based on the distribution chart, Mexco Energy ranks #259 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Mexco Energy has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mexco Energy's Gross Margin % compare to NRIS and BRN?
According to the Oil & Gas industry distribution chart, Mexco Energy ranks #259 out of 867 companies for Gross Margin %. This puts Mexco Energy in the upper half of its industry. The industry median Gross Margin % is 25.70. Mexco Energy's value of 30.13% is 17.2% above this benchmark. While the company's 10-year median is 35.95 vs. the industry median of 25.70, Mexco Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mexco Energy's current Gross Margin % of 30.13% is 17.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Mexco Energy and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mexco Energy's current Gross Margin % is 30.13%, which is 16% below median its own 10-year median of 35.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mexco Energy stock overvalued right now?
Based on GuruFocus' analysis, Mexco Energy (MXC) is currently considered Modestly Undervalued. The stock's GF Value™ is $10.06, compared to a current price of $7.42 — trading 26.2% below its estimated fair value. The current Gross Margin % is 30.13%, which is 16% below median its 10-year median of 35.95 and 17.2% above the Oil & Gas industry median of 25.70. Mexco Energy's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Mexco Energy (MXC), the current Gross Margin % is 30.13% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mexco Energy (MXC) Overvalued in 2026?
Based on GuruFocus' analysis, Mexco Energy stock appears to be undervalued.
The current stock price of $7.42 is trading 26.2% below its estimated GF Value™ of $10.06.
GuruFocus considers Mexco Energy to be Modestly Undervalued.
Key valuation signals for MXC:
Gross Margin %: 30.13% (16% below median its 10-year median of 35.95)
GF Value™: $10.06 vs. price of $7.42 (26.2% below fair value)
Industry Position: 17.2% above the Oil & Gas median (#259 of 867)
No single metric tells the full story. See the MXC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mexco Energy Corporation is an independent oil and gas company. It is engaged in the acquisition, exploration, development, and production of natural gas and crude oil properties located in the United States. The company carried out its operation in the Permian Basin of West Texas. It is focusing on two primary areas, the Delaware Basin located in the Western portion of the Permian Basin including Lea and Eddy Counties, New Mexico and Loving County, Texas, and the Midland Basin located in the Eastern portion of the Permian Basin including Reagan, Upton, Midland, Martin, Howard, and Glasscock Counties, Texas. The company generates revenue from Oil sales, Natural gas sales, oil and gas royalty interests.
71GF Score
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