TEXAS PACIFIC LAND CORP (TPL)
US88262P1021 - Common Stock
Overall TPL gets a fundamental rating of 7 out of 10. We evaluated TPL against 205 industry peers in the Oil, Gas & Consumable Fuels industry. TPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TPL is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, TPL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year TPL was profitable.
TPL had a positive operating cash flow in the past year.
Each year in the past 5 years TPL has been profitable.
TPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 38.17%, TPL belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
TPL's Return On Equity of 42.65% is amongst the best of the industry. TPL outperforms 92.54% of its industry peers.
With an excellent Return On Invested Capital value of 37.23%, TPL belongs to the best of the industry, outperforming 97.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TPL is significantly above the industry average of 29.03%.
The 3 year average ROIC (42.35%) for TPL is well above the current ROIC(37.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 38.17% | ||
| ROE | 42.65% | ||
| ROIC | 37.23% |
ROA(3y)40.43%
ROA(5y)41.07%
ROE(3y)46.02%
ROE(5y)47.32%
ROIC(3y)42.35%
ROIC(5y)42.59%
1.3 Margins
TPL's Profit Margin of 65.34% is amongst the best of the industry. TPL outperforms 94.03% of its industry peers.
In the last couple of years the Profit Margin of TPL has declined.
TPL's Operating Margin of 77.25% is amongst the best of the industry. TPL outperforms 95.52% of its industry peers.
In the last couple of years the Operating Margin of TPL has declined.
With an excellent Gross Margin value of 93.33%, TPL belongs to the best of the industry, outperforming 98.51% 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 | 77.25% | ||
| PM (TTM) | 65.34% | ||
| GM | 93.33% |
OM growth 3Y2.34%
OM growth 5Y-2.4%
PM growth 3Y3.35%
PM growth 5Y-1.67%
GM growth 3Y-0.21%
GM growth 5Y-0.33%
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.
TPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TPL has less shares outstanding
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 139.38. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
TPL has a Altman-Z score of 139.38. This is amongst the best in the industry. TPL outperforms 100.00% 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 | 139.38 |
ROIC/WACC4.03
WACC9.24%
2.3 Liquidity
A Current Ratio of 12.16 indicates that TPL has no problem at all paying its short term obligations.
The Current ratio of TPL (12.16) is better than 96.02% of its industry peers.
A Quick Ratio of 12.16 indicates that TPL has no problem at all paying its short term obligations.
TPL has a Quick ratio of 12.16. This is amongst the best in the industry. TPL outperforms 96.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.16 | ||
| Quick Ratio | 12.16 |
3. Growth
3.1 Past
TPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.70%, which is quite good.
Measured over the past years, TPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.39% on average per year.
TPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.18%.
Measured over the past years, TPL shows a quite strong growth in Revenue. The Revenue has been growing by 16.04% on average per year.
EPS 1Y (TTM)14.7%
EPS 3Y32.47%
EPS 5Y14.39%
EPS Q2Q%1.09%
Revenue 1Y (TTM)11.18%
Revenue growth 3Y27.8%
Revenue growth 5Y16.04%
Sales Q2Q%9.87%
3.2 Future
Based on estimates for the next years, TPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
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 Y15.64%
EPS Next 2Y104.91%
EPS Next 3Y12.48%
EPS Next 5YN/A
Revenue Next Year12.37%
Revenue Next 2Y12.95%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 62.42, TPL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 74.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (27.48), we can say TPL is valued expensively.
TPL is valuated correctly with a Price/Forward Earnings ratio of 16.47.
The rest of the industry has a similar Price/Forward Earnings ratio as TPL.
The average S&P500 Price/Forward Earnings ratio is at 23.73. TPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.42 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
TPL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TPL is more expensive than 80.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPL is valued a bit more expensive than 63.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.84 | ||
| EV/EBITDA | 49.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPL does not grow enough to justify the current Price/Earnings ratio.
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 12.48% in the coming years.
PEG (NY)3.99
PEG (5Y)4.34
EPS Next 2Y104.91%
EPS Next 3Y12.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, TPL is not a good candidate for dividend investing.
TPL's Dividend Yield is slightly below the industry average, which is at 6.70.
With a Dividend Yield of 0.54, TPL pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of TPL is nicely growing with an annual growth rate of 26.12%!
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)26.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
74.78% 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.
DP74.78%
EPS Next 2Y104.91%
EPS Next 3Y12.48%
TEXAS PACIFIC LAND CORP
NYSE:TPL (1/6/2025, 1:54:10 PM)
1216.54
+5.51 (+0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.18%
Inst Owner Change0.01%
Ins Owners0.83%
Ins Owner Change-0.01%
Market Cap27.94B
Analysts45
Price Target576.43 (-52.62%)
Short Float %5.86%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Dividend Growth(5Y)26.12%
DP74.78%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.19%
Min EPS beat(2)-14.35%
Max EPS beat(2)-8.03%
EPS beat(4)2
Avg EPS beat(4)-0.81%
Min EPS beat(4)-14.35%
Max EPS beat(4)17.08%
EPS beat(8)3
Avg EPS beat(8)-3.53%
EPS beat(12)4
Avg EPS beat(12)-2.8%
EPS beat(16)7
Avg EPS beat(16)1.2%
Revenue beat(2)0
Avg Revenue beat(2)-5.68%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-4.93%
Revenue beat(4)2
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)8.98%
Revenue beat(8)3
Avg Revenue beat(8)-1.23%
Revenue beat(12)5
Avg Revenue beat(12)0.24%
Revenue beat(16)9
Avg Revenue beat(16)2.48%
PT rev (1m)0%
PT rev (3m)-23.74%
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)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.42 | ||
| Fwd PE | 16.47 | ||
| P/S | 40.69 | ||
| P/FCF | 83.84 | ||
| P/OCF | 58.76 | ||
| P/B | 26.56 | ||
| P/tB | 27.49 | ||
| EV/EBITDA | 49.78 |
EPS(TTM)19.49
EY1.6%
EPS(NY)73.85
Fwd EY6.07%
FCF(TTM)14.51
FCFY1.19%
OCF(TTM)20.7
OCFY1.7%
SpS29.9
BVpS45.8
TBVpS44.25
PEG (NY)3.99
PEG (5Y)4.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 38.17% | ||
| ROE | 42.65% | ||
| ROCE | 47.48% | ||
| ROIC | 37.23% | ||
| ROICexc | 71.31% | ||
| ROICexgc | 76.66% | ||
| OM | 77.25% | ||
| PM (TTM) | 65.34% | ||
| GM | 93.33% | ||
| FCFM | 48.54% |
ROA(3y)40.43%
ROA(5y)41.07%
ROE(3y)46.02%
ROE(5y)47.32%
ROIC(3y)42.35%
ROIC(5y)42.59%
ROICexc(3y)111.7%
ROICexc(5y)103.18%
ROICexgc(3y)114.55%
ROICexgc(5y)105.47%
ROCE(3y)54%
ROCE(5y)54.31%
ROICexcg growth 3Y18.08%
ROICexcg growth 5Y-5.47%
ROICexc growth 3Y16.02%
ROICexc growth 5Y-5.81%
OM growth 3Y2.34%
OM growth 5Y-2.4%
PM growth 3Y3.35%
PM growth 5Y-1.67%
GM growth 3Y-0.21%
GM growth 5Y-0.33%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 809.34% | ||
| Cap/Sales | 20.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.77% | ||
| Profit Quality | 74.28% | ||
| Current Ratio | 12.16 | ||
| Quick Ratio | 12.16 | ||
| Altman-Z | 139.38 |
F-Score7
WACC9.24%
ROIC/WACC4.03
Cap/Depr(3y)215.85%
Cap/Depr(5y)416.72%
Cap/Sales(3y)5.45%
Cap/Sales(5y)9.55%
Profit Quality(3y)91.95%
Profit Quality(5y)90.23%
High Growth Momentum
Growth
EPS 1Y (TTM)14.7%
EPS 3Y32.47%
EPS 5Y14.39%
EPS Q2Q%1.09%
EPS Next Y15.64%
EPS Next 2Y104.91%
EPS Next 3Y12.48%
EPS Next 5YN/A
Revenue 1Y (TTM)11.18%
Revenue growth 3Y27.8%
Revenue growth 5Y16.04%
Sales Q2Q%9.87%
Revenue Next Year12.37%
Revenue Next 2Y12.95%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
EBIT growth 1Y11.34%
EBIT growth 3Y30.79%
EBIT growth 5Y13.26%
EBIT Next Year17.87%
EBIT Next 3Y15.06%
EBIT Next 5YN/A
FCF growth 1Y-13.56%
FCF growth 3Y25.51%
FCF growth 5Y25.74%
OCF growth 1Y17.33%
OCF growth 3Y26.42%
OCF growth 5Y16.44%