TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
NYSE:TPL - New York Stock Exchange, Inc. - US88262P1021 - Common Stock - Currency: USD
Overall TPL gets a fundamental rating of 7 out of 10. We evaluated TPL against 211 industry peers in the Oil, Gas & Consumable Fuels industry. TPL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, TPL is valued expensive at the moment. This makes TPL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year TPL was profitable.
In the past year TPL had a positive cash flow from operations.
In the past 5 years TPL has always been profitable.
Each year in the past 5 years TPL had a positive operating cash flow.
1.2 Ratios
TPL has a better Return On Assets (34.01%) than 96.21% of its industry peers.
With an excellent Return On Equity value of 38.15%, TPL belongs to the best of the industry, outperforming 92.89% of the companies in the same industry.
The Return On Invested Capital of TPL (34.02%) is better than 97.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPL is significantly above the industry average of 23.70%.
The last Return On Invested Capital (34.02%) for TPL is well below the 3 year average (40.76%), which needs to be investigated, but indicates that TPL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.01% | ||
| ROE | 38.15% | ||
| ROIC | 34.02% |
ROA(3y)40.77%
ROA(5y)37.69%
ROE(3y)45.57%
ROE(5y)42.89%
ROIC(3y)40.76%
ROIC(5y)38.64%
1.3 Margins
TPL's Profit Margin of 63.24% is amongst the best of the industry. TPL outperforms 94.31% of its industry peers.
TPL's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 76.02%, TPL belongs to the top of the industry, outperforming 96.68% of the companies in the same industry.
In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
With an excellent Gross Margin value of 93.54%, TPL belongs to the best of the industry, outperforming 98.58% of the companies in the same industry.
In the last couple of years the Gross Margin of TPL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.02% | ||
| PM (TTM) | 63.24% | ||
| GM | 93.54% |
OM growth 3Y-1.68%
OM growth 5Y-1.28%
PM growth 3Y2.42%
PM growth 5Y-0.21%
GM growth 3Y-1.25%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPL is creating value.
TPL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TPL has been reduced compared to 5 years ago.
TPL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 104.31 indicates that TPL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TPL (104.31) is better than 98.58% of its industry peers.
TPL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 104.31 |
ROIC/WACC3.81
WACC8.93%
2.3 Liquidity
TPL has a Current Ratio of 7.68. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TPL (7.68) is better than 94.79% of its industry peers.
TPL has a Quick Ratio of 7.68. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TPL (7.68) is better than 95.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.68 | ||
| Quick Ratio | 7.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.27% over the past year.
Measured over the past 5 years, TPL shows a small growth in Earnings Per Share. The EPS has been growing by 7.56% on average per year.
Looking at the last year, TPL shows a quite strong growth in Revenue. The Revenue has grown by 10.36% in the last year.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)6.27%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%5.43%
Revenue 1Y (TTM)10.36%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%12.54%
3.2 Future
Based on estimates for the next years, TPL will show a very strong growth in Earnings Per Share. The EPS will grow by 24.57% on average per year.
Based on estimates for the next years, TPL will show a quite strong growth in Revenue. The Revenue will grow by 14.73% on average per year.
EPS Next Y31.01%
EPS Next 2Y24.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.04%
Revenue Next 2Y14.73%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 53.83 indicates a quite expensive valuation of TPL.
66.35% of the companies in the same industry are cheaper than TPL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. TPL is valued rather expensively when compared to this.
TPL is valuated quite expensively with a Price/Forward Earnings ratio of 35.16.
Based on the Price/Forward Earnings ratio, TPL is valued a bit more expensive than the industry average as 64.93% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, TPL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.83 | ||
| Fwd PE | 35.16 |
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 71.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 391.86 | ||
| EV/EBITDA | 41.24 |
4.3 Compensation for Growth
TPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TPL may justify a higher PE ratio.
A more expensive valuation may be justified as TPL's earnings are expected to grow with 24.57% in the coming years.
PEG (NY)1.74
PEG (5Y)7.12
EPS Next 2Y24.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, TPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of TPL is nicely growing with an annual growth rate of 49.85%!
TPL has paid a dividend for at least 10 years, which is a reliable track record.
TPL has decreased its dividend recently.
Dividend Growth(5Y)49.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
77.76% of the earnings are spent on dividend by TPL. This is not a sustainable payout ratio.
TPL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.76%
EPS Next 2Y24.57%
EPS Next 3YN/A
1075.97
+4.02 (+0.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.02%
Inst Owner Change2.65%
Ins Owners0.85%
Ins Owner Change8.94%
Market Cap24.74B
Analysts45
Price Target1264.8 (17.55%)
Short Float %7.03%
Short Ratio12.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend15.11
Dividend Growth(5Y)49.85%
DP77.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.8%
Min EPS beat(2)-70.62%
Max EPS beat(2)-0.97%
EPS beat(4)0
Avg EPS beat(4)-23.49%
Min EPS beat(4)-70.62%
Max EPS beat(4)-0.97%
EPS beat(8)3
Avg EPS beat(8)-8.6%
EPS beat(12)4
Avg EPS beat(12)-7.33%
EPS beat(16)5
Avg EPS beat(16)-5.56%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)4.39%
Revenue beat(4)1
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)4.39%
Revenue beat(8)4
Avg Revenue beat(8)1.28%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)1.06%
PT rev (1m)-3.12%
PT rev (3m)5.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.71%
Revenue NY rev (3m)-14.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.83 | ||
| Fwd PE | 35.16 | ||
| P/S | 33.99 | ||
| P/FCF | 391.86 | ||
| P/OCF | 49.46 | ||
| P/B | 20.51 | ||
| P/tB | 21.11 | ||
| EV/EBITDA | 41.24 |
EPS(TTM)19.99
EY1.86%
EPS(NY)30.6
Fwd EY2.84%
FCF(TTM)2.75
FCFY0.26%
OCF(TTM)21.76
OCFY2.02%
SpS31.65
BVpS52.47
TBVpS50.96
PEG (NY)1.74
PEG (5Y)7.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.01% | ||
| ROE | 38.15% | ||
| ROCE | 43.39% | ||
| ROIC | 34.02% | ||
| ROICexc | 53.26% | ||
| ROICexgc | 56.45% | ||
| OM | 76.02% | ||
| PM (TTM) | 63.24% | ||
| GM | 93.54% | ||
| FCFM | 8.68% |
ROA(3y)40.77%
ROA(5y)37.69%
ROE(3y)45.57%
ROE(5y)42.89%
ROIC(3y)40.76%
ROIC(5y)38.64%
ROICexc(3y)95.15%
ROICexc(5y)89.84%
ROICexgc(3y)98.68%
ROICexgc(5y)92.36%
ROCE(3y)51.99%
ROCE(5y)49.28%
ROICexcg growth 3Y-19.02%
ROICexcg growth 5Y-14.71%
ROICexc growth 3Y-20.28%
ROICexc growth 5Y-15.41%
OM growth 3Y-1.68%
OM growth 5Y-1.28%
PM growth 3Y2.42%
PM growth 5Y-0.21%
GM growth 3Y-1.25%
GM growth 5Y-0.48%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1313.86% | ||
| Cap/Sales | 60.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 13.72% | ||
| Current Ratio | 7.68 | ||
| Quick Ratio | 7.68 | ||
| Altman-Z | 104.31 |
F-Score6
WACC8.93%
ROIC/WACC3.81
Cap/Depr(3y)748.21%
Cap/Depr(5y)504.83%
Cap/Sales(3y)24.41%
Cap/Sales(5y)17.08%
Profit Quality(3y)65.9%
Profit Quality(5y)78.56%
High Growth Momentum
Growth
EPS 1Y (TTM)6.27%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%5.43%
EPS Next Y31.01%
EPS Next 2Y24.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.36%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%12.54%
Revenue Next Year14.04%
Revenue Next 2Y14.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.97%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year27.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-85.53%
FCF growth 3Y-36.45%
FCF growth 5Y-22.66%
OCF growth 1Y10.12%
OCF growth 3Y22.77%
OCF growth 5Y7.44%