Mexco EnergyMXC -3.51%71 ROE % is 1.04% as of Dec. 2025, which is 24% above its 10-year median of 0.84. 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 957 Oil & Gas companies, Mexco Energy ranks better than 52.46% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Mexco Energy's annualized net income for the quarter that ended in Dec. 2025 was $0.20 Mil. Mexco Energy's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $19.21 Mil. Therefore, Mexco Energy's annualized ROE % for the quarter that ended in Dec. 2025 was 1.04%.
The historical rank and industry rank for Mexco Energy's ROE % or its related term are showing as below:
MXC'
s ROE % Range Over the Past 10 Years
Min: -35.3 Med: 0.84 Max: 32.1
Current: 6.66
During the past 13 years, Mexco Energy's highest ROE % was 32.10%. The lowest was -35.30%. And the median was 0.84%.
MXC's ROE % is ranked better than 52.46% of 957
companies
in the Oil & Gas industry
Industry Median: 5.71
vs MXC: 6.66
Mexco Energy (AMEX:MXC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Mexco Energy ROE % Related Terms
Mexco Energy ROE % Historical Data
* Premium members only.
The historical data trend for Mexco Energy's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Mexco Energy's ROE % distribution charts can be found below:
* The bar in red indicates where Mexco Energy's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Mexco Energy (MXC) has a ROE % of 1.04% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mexco Energy and its competitors. This is 24% above median its historical median of 0.84. According to the industry distribution chart, Mexco Energy ranks #455 out of 957 companies in the Oil & Gas industry, placing it in the top 47.5%.
Is Mexco Energy's ROE % too high?
Mexco Energy's current ROE % of 1.04% is 24% above median its 10-year median of 0.84. The Oil & Gas industry median ROE % is 5.71. Mexco Energy's value of 1.04% is 81.8% below this industry median. Based on the distribution chart, Mexco Energy ranks #455 out of 957 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 ROE % compare to NRIS and BRN?
According to the Oil & Gas industry distribution chart, Mexco Energy ranks #455 out of 957 companies for ROE %. This puts Mexco Energy in the upper half of its industry. The industry median ROE % is 5.71. Mexco Energy's value of 1.04% is 81.8% below this benchmark. While the company's 10-year median is 0.84 vs. the industry median of 5.71, Mexco Energy has consistently been below 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 ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.71, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mexco Energy's current ROE % of 1.04% is 81.8% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mexco Energy and its competitors. For the Oil & Gas industry, the median ROE % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mexco Energy's current ROE % is 1.04%, which is 24% above median its own 10-year median of 0.84. 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 ROE % is 1.04%, which is 24% above median its 10-year median of 0.84 and 81.8% below the Oil & Gas industry median of 5.71. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Mexco Energy (MXC), the current ROE % is 1.04% 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:
ROE %: 1.04% (24% above median its 10-year median of 0.84)
GF Value™: $10.06 vs. price of $7.42 (26.2% below fair value)
Industry Position: 81.8% below the Oil & Gas median (#455 of 957)
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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