TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
NYSE:TPL - New York Stock Exchange, Inc. - US88262P1021 - Common Stock - Currency: USD
Taking everything into account, TPL scores 7 out of 10 in our fundamental rating. TPL was compared to 212 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 valued quite expensive, but it does show an excellent growth. This makes TPL very considerable for growth and 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.
In the past 5 years TPL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 38.17%, TPL belongs to the top of the industry, outperforming 95.63% of the companies in the same industry.
TPL's Return On Equity of 42.65% is amongst the best of the industry. TPL outperforms 92.23% of its industry peers.
TPL's Return On Invested Capital of 37.23% is amongst the best of the industry. TPL outperforms 97.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPL is significantly above the industry average of 28.72%.
The last Return On Invested Capital (37.23%) for TPL is well below the 3 year average (42.35%), which needs to be investigated, but indicates that TPL had better years and this may not be a problem.
| 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 has a better Profit Margin (65.34%) than 94.17% of its industry peers.
TPL's Profit Margin has declined in the last couple of years.
TPL has a Operating Margin of 77.25%. This is amongst the best in the industry. TPL outperforms 95.63% of its industry peers.
TPL's Operating Margin has declined in the last couple of years.
TPL's Gross Margin of 93.33% is amongst the best of the industry. TPL outperforms 98.54% of its industry peers.
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
TPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TPL has less shares outstanding than it did 1 year ago.
TPL has less shares outstanding than it did 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 153.62. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPL (153.62) is better than 99.51% 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 | 153.62 |
ROIC/WACC4.1
WACC9.09%
2.3 Liquidity
A Current Ratio of 12.16 indicates that TPL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 12.16, TPL belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
A Quick Ratio of 12.16 indicates that TPL has no problem at all paying its short term obligations.
TPL has a better Quick ratio (12.16) than 96.12% 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.
The Revenue has grown by 11.18% in the past year. This is quite good.
The Revenue has been growing by 16.04% on average over the past years. This is quite good.
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 very strong growth in Earnings Per Share. The EPS will grow by 20.28% on average per year.
Based on estimates for the next years, TPL will show a very strong growth in Revenue. The Revenue will grow by 20.00% on average per year.
EPS Next Y12.95%
EPS Next 2Y21.2%
EPS Next 3Y20.28%
EPS Next 5YN/A
Revenue Next Year14.14%
Revenue Next 2Y22.04%
Revenue Next 3Y20%
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
TPL is valuated quite expensively with a Price/Earnings ratio of 69.02.
Based on the Price/Earnings ratio, TPL is valued a bit more expensive than the industry average as 73.30% of the companies are valued more cheaply.
TPL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.12.
With a Price/Forward Earnings ratio of 52.07, TPL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 71.36% of the companies listed in the same industry.
TPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 94.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.02 | ||
| Fwd PE | 52.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 79.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPL is valued a bit more expensive than 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.71 | ||
| EV/EBITDA | 55.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TPL may justify a higher PE ratio.
TPL's earnings are expected to grow with 20.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.33
PEG (5Y)4.8
EPS Next 2Y21.2%
EPS Next 3Y20.28%
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.49%, which is pretty low.
TPL's Dividend Yield is slightly below the industry average, which is at 6.57.
With a Dividend Yield of 0.49, TPL pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
The dividend of TPL decreased 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.
The dividend of TPL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.78%
EPS Next 2Y21.2%
EPS Next 3Y20.28%
TEXAS PACIFIC LAND CORP
NYSE:TPL (2/7/2025, 8:04:00 PM)
After market: 1345.25 0 (0%)1345.25
+6.67 (+0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.18%
Inst Owner Change-0.74%
Ins Owners0.83%
Ins Owner Change-0.02%
Market Cap30.90B
Analysts45
Price Target1111.8 (-17.35%)
Short Float %6.01%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend4.32
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)92.88%
PT rev (3m)92.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.32%
EPS NY rev (3m)-2.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.58%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.02 | ||
| Fwd PE | 52.07 | ||
| P/S | 45 | ||
| P/FCF | 92.71 | ||
| P/OCF | 64.98 | ||
| P/B | 29.37 | ||
| P/tB | 30.4 | ||
| EV/EBITDA | 55.13 |
EPS(TTM)19.49
EY1.45%
EPS(NY)25.84
Fwd EY1.92%
FCF(TTM)14.51
FCFY1.08%
OCF(TTM)20.7
OCFY1.54%
SpS29.9
BVpS45.8
TBVpS44.25
PEG (NY)5.33
PEG (5Y)4.8
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 | 153.62 |
F-Score7
WACC9.09%
ROIC/WACC4.1
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 Y12.95%
EPS Next 2Y21.2%
EPS Next 3Y20.28%
EPS Next 5YN/A
Revenue 1Y (TTM)11.18%
Revenue growth 3Y27.8%
Revenue growth 5Y16.04%
Sales Q2Q%9.87%
Revenue Next Year14.14%
Revenue Next 2Y22.04%
Revenue Next 3Y20%
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%