TEXAS PACIFIC LAND CORP (TPL)
US88262P1021 - Common Stock
Overall TPL gets a fundamental rating of 7 out of 10. We evaluated TPL against 213 industry peers in the Oil, Gas & Consumable Fuels industry. TPL gets an excellent profitability rating and is at the same time showing great financial health properties. TPL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TPL had positive earnings in the past year.
TPL had a positive operating cash flow in the past year.
Each year in the past 5 years TPL has been profitable.
Each year in the past 5 years TPL had a positive operating cash flow.
1.2 Ratios
TPL has a Return On Assets of 34.43%. This is amongst the best in the industry. TPL outperforms 94.84% of its industry peers.
With an excellent Return On Equity value of 38.62%, TPL belongs to the best of the industry, outperforming 89.67% of the companies in the same industry.
The Return On Invested Capital of TPL (34.16%) is better than 95.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPL is in line with the industry average of 43.36%.
The 3 year average ROIC (42.35%) for TPL is well above the current ROIC(34.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.43% | ||
| ROE | 38.62% | ||
| ROIC | 34.16% |
ROA(3y)40.43%
ROA(5y)41.07%
ROE(3y)46.02%
ROE(5y)47.31%
ROIC(3y)42.35%
ROIC(5y)42.6%
1.3 Margins
TPL has a Profit Margin of 65.74%. This is amongst the best in the industry. TPL outperforms 92.49% of its industry peers.
TPL's Profit Margin has declined in the last couple of years.
TPL has a better Operating Margin (78.43%) than 94.84% of its industry peers.
TPL's Operating Margin has declined in the last couple of years.
TPL has a Gross Margin of 94.22%. This is amongst the best in the industry. TPL outperforms 99.06% of its industry peers.
TPL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.43% | ||
| PM (TTM) | 65.74% | ||
| GM | 94.22% |
OM growth 3Y2.33%
OM growth 5Y-2.4%
PM growth 3Y3.36%
PM growth 5Y-1.67%
GM growth 3Y-0.21%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TPL is creating value.
The number of shares outstanding for TPL has been reduced compared to 1 year ago.
The number of shares outstanding for TPL has been increased compared to 5 years ago.
There is no outstanding debt for TPL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
TPL has an Altman-Z score of 65.75. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPL (65.75) is better than 98.59% of its industry peers.
There is no outstanding debt for TPL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 65.75 |
ROIC/WACC3.79
WACC9.02%
2.3 Liquidity
A Current Ratio of 13.39 indicates that TPL has no problem at all paying its short term obligations.
The Current ratio of TPL (13.39) is better than 97.18% of its industry peers.
A Quick Ratio of 13.39 indicates that TPL has no problem at all paying its short term obligations.
The Quick ratio of TPL (13.39) is better than 97.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.39 | ||
| Quick Ratio | 13.39 |
3. Growth
3.1 Past
TPL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.63%.
TPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.13% yearly.
The Revenue has decreased by -1.06% in the past year.
TPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.04% yearly.
EPS 1Y (TTM)-66.63%
EPS 3Y3.39%
EPS 5Y-8.13%
EPS growth Q2Q-55.8%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y27.8%
Revenue growth 5Y16.04%
Revenue growth Q2Q18.98%
3.2 Future
TPL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.08% yearly.
TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.84% yearly.
EPS Next Y-15.4%
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
EPS Next 5YN/A
Revenue Next Year13.99%
Revenue Next 2Y12.95%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.44, which means the current valuation is very expensive for TPL.
Based on the Price/Earnings ratio, TPL is valued a bit more expensive than 74.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, TPL is valued at the same level.
A Price/Forward Earnings ratio of 8.26 indicates a reasonable valuation of TPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPL indicates a somewhat cheap valuation: TPL is cheaper than 72.30% of the companies listed in the same industry.
TPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
TPL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TPL is more expensive than 77.46% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 61.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 24.8 |
4.3 Compensation for Growth
TPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, TPL is not a good candidate for dividend investing.
TPL's Dividend Yield is slightly below the industry average, which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.32, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of TPL has a limited annual growth rate of 1.23%.
TPL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TPL pays out 23.49% of its income as dividend. This is a sustainable payout ratio.
DP23.49%
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
TEXAS PACIFIC LAND CORP
NYSE:TPL (5/17/2024, 7:04:00 PM)
After market: 610.22 0 (0%)610.22
+1.7 (+0.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 8.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.43% | ||
| ROE | 38.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 78.43% | ||
| PM (TTM) | 65.74% | ||
| GM | 94.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 13.39 | ||
| Quick Ratio | 13.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-66.63%
EPS 3Y3.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y27.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y