TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
354.78 USD
+9.58 (+2.78%)
358 USD
+3.22 (+0.91%)
Overall TPL gets a fundamental rating of 7 out of 10. We evaluated TPL against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making TPL a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, TPL is valued expensive at the moment. With these ratings, TPL could be worth investigating further for quality investing!.
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.
- TPL had positive earnings in each of the past 5 years.
- TPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 31.24%, TPL belongs to the best of the industry, outperforming 96.62% of the companies in the same industry.
- With an excellent Return On Equity value of 34.82%, TPL belongs to the best of the industry, outperforming 93.24% of the companies in the same industry.
- TPL has a Return On Invested Capital of 31.87%. This is amongst the best in the industry. TPL outperforms 97.58% of its industry peers.
- TPL had an Average Return On Invested Capital over the past 3 years of 40.76%. This is significantly above the industry average of 21.94%.
- The last Return On Invested Capital (31.87%) 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 | 31.24% | ||
| ROE | 34.82% | ||
| ROIC | 31.87% |
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
- The Profit Margin of TPL (61.68%) is better than 95.17% of its industry peers.
- TPL's Profit Margin has been stable in the last couple of years.
- The Operating Margin of TPL (75.80%) is better than 97.10% of its industry peers.
- In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 94.13%, TPL belongs to the top of the industry, outperforming 98.07% of the companies in the same industry.
- TPL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.8% | ||
| PM (TTM) | 61.68% | ||
| GM | 94.13% |
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.
- 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 34.84. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
- TPL's Altman-Z score of 34.84 is amongst the best of the industry. TPL outperforms 97.10% 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 | 34.84 |
ROIC/WACC3.59
WACC8.88%
2.3 Liquidity
- A Current Ratio of 8.70 indicates that TPL has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 8.70, TPL belongs to the best of the industry, outperforming 93.24% of the companies in the same industry.
- TPL has a Quick Ratio of 8.70. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
- TPL's Quick ratio of 8.70 is amongst the best of the industry. TPL outperforms 93.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 79.34% 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 7.53% on average per year.
- TPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
- The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)79.34%
EPS 3Y50.08%
EPS 5Y7.53%
EPS Q2Q%-62.06%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
3.2 Future
- TPL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.38% yearly.
- The Revenue is expected to grow by 12.76% on average over the next years. This is quite good.
EPS Next Y-9.98%
EPS Next 2Y-21.1%
EPS Next 3Y-13.38%
EPS Next 5YN/A
Revenue Next Year8.59%
Revenue Next 2Y14.83%
Revenue Next 3Y12.76%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.64, the valuation of TPL can be described as rather expensive.
- TPL's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (28.60), we can say TPL is valued slightly cheaper.
- The Price/Forward Earnings ratio is 43.55, which means the current valuation is very expensive for TPL.
- Based on the Price/Forward Earnings ratio, TPL is valued a bit more expensive than the industry average as 61.35% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of TPL to the average of the S&P500 Index (25.83), we can say TPL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 43.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPL is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.87 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
- TPL has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as TPL's earnings are expected to decrease with -13.38% in the coming years.
PEG (NY)N/A
PEG (5Y)2.74
EPS Next 2Y-21.1%
EPS Next 3Y-13.38%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.62%, TPL is not a good candidate for dividend investing.
- TPL's Dividend Yield is slightly below the industry average, which is at 3.73.
- Compared to an average S&P500 Dividend Yield of 1.82, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
- The dividend of TPL is nicely growing with an annual growth rate of 49.85%!
- TPL has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of TPL decreased recently.
Dividend Growth(5Y)49.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 31.02% of the earnings are spent on dividend by TPL. This is a low number and sustainable payout ratio.
DP31.02%
EPS Next 2Y-21.1%
EPS Next 3Y-13.38%
TEXAS PACIFIC LAND CORP / TPL FAQ
What is the fundamental rating for TPL stock?
ChartMill assigns a fundamental rating of 7 / 10 to TPL.
Can you provide the valuation status for TEXAS PACIFIC LAND CORP?
ChartMill assigns a valuation rating of 2 / 10 to TEXAS PACIFIC LAND CORP (TPL). This can be considered as Overvalued.
How profitable is TEXAS PACIFIC LAND CORP (TPL) stock?
TEXAS PACIFIC LAND CORP (TPL) has a profitability rating of 9 / 10.
What is the valuation of TEXAS PACIFIC LAND CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TEXAS PACIFIC LAND CORP (TPL) is 20.64 and the Price/Book (PB) ratio is 5.96.
How sustainable is the dividend of TEXAS PACIFIC LAND CORP (TPL) stock?
The dividend rating of TEXAS PACIFIC LAND CORP (TPL) is 3 / 10 and the dividend payout ratio is 31.02%.