TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
287.22 USD
-5.46 (-1.87%)
288.506 USD
+1.29 (+0.45%)
We assign a fundamental rating of 8 out of 10 to TPL. TPL was compared to 209 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, TPL could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
TPL had positive earnings in the past year.
In the past year TPL had a positive cash flow from operations.
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
TPL has a Return On Assets of 31.24%. This is amongst the best in the industry. TPL outperforms 96.65% of its industry peers.
TPL's Return On Equity of 34.82% is amongst the best of the industry. TPL outperforms 93.78% of its industry peers.
TPL has a better Return On Invested Capital (31.87%) than 97.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPL is significantly above the industry average of 21.27%.
The 3 year average ROIC (40.76%) for TPL is well above the current ROIC(31.87%). The reason for the recent decline needs to be investigated.
| 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
TPL's Profit Margin of 61.68% is amongst the best of the industry. TPL outperforms 95.69% of its industry peers.
In the last couple of years the Profit Margin of TPL has remained more or less at the same level.
TPL has a better Operating Margin (75.80%) than 97.13% of its industry peers.
In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
TPL has a Gross Margin of 94.13%. This is amongst the best in the industry. TPL outperforms 98.09% of its industry peers.
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
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 remains at a similar level compared to 1 year ago.
TPL has less shares outstanding than it did 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 28.90 indicates that TPL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TPL (28.90) is better than 97.61% 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 | 28.9 |
ROIC/WACC3.61
WACC8.82%
2.3 Liquidity
TPL has a Current Ratio of 8.70. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TPL (8.70) is better than 93.78% of its industry peers.
A Quick Ratio of 8.70 indicates that TPL has no problem at all paying its short term obligations.
The Quick ratio of TPL (8.70) is better than 94.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
TPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.34%, which is quite impressive.
The Earnings Per Share has been growing slightly by 7.56% on average over the past years.
The Revenue has grown by 12.48% in the past year. This is quite good.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)79.34%
EPS 3Y50.08%
EPS 5Y7.56%
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 strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.93% yearly.
TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.47% yearly.
EPS Next Y62.77%
EPS Next 2Y38.35%
EPS Next 3Y24.93%
EPS Next 5YN/A
Revenue Next Year9.11%
Revenue Next 2Y14.05%
Revenue Next 3Y12.47%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 16.71, TPL is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as TPL.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (26.51), we can say TPL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.47, the valuation of TPL can be described as very reasonable.
TPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TPL is cheaper than 66.99% of the companies in the same industry.
TPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
TPL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.08 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 24.93% in the coming years.
PEG (NY)0.27
PEG (5Y)2.21
EPS Next 2Y38.35%
EPS Next 3Y24.93%
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 3.93, TPL is paying slightly less dividend.
With a Dividend Yield of 0.72, TPL pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
On average, the dividend of TPL grows each year by 49.85%, which is quite nice.
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
TPL pays out 31.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of TPL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.02%
EPS Next 2Y38.35%
EPS Next 3Y24.93%
287.22
-5.46 (-1.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.43%
Inst Owner Change0%
Ins Owners5.21%
Ins Owner Change0.01%
Market Cap6.60B
Revenue(TTM)772.39M
Net Income(TTM)476.39M
Analysts74.29
Price TargetN/A
Short Float %N/A
Short Ratio10.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend15.11
Dividend Growth(5Y)49.85%
DP31.02%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.15%
Min EPS beat(2)-72.72%
Max EPS beat(2)-9.57%
EPS beat(4)0
Avg EPS beat(4)-38.47%
Min EPS beat(4)-72.72%
Max EPS beat(4)-0.97%
EPS beat(8)2
Avg EPS beat(8)-19.64%
EPS beat(12)3
Avg EPS beat(12)-15.18%
EPS beat(16)4
Avg EPS beat(16)-11.72%
Revenue beat(2)0
Avg Revenue beat(2)-6.36%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)-2.86%
Revenue beat(4)1
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)4.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)4
Avg Revenue beat(12)-1.72%
Revenue beat(16)6
Avg Revenue beat(16)-0.5%
PT rev (1m)4.33%
PT rev (3m)-13.15%
EPS NQ rev (1m)-67.03%
EPS NQ rev (3m)-90.75%
EPS NY rev (1m)-8.6%
EPS NY rev (3m)-13.46%
Revenue NQ rev (1m)-2.68%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-6.76%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 11.47 | ||
| P/S | 8.55 | ||
| P/FCF | 33.08 | ||
| P/OCF | 11.81 | ||
| P/B | 4.82 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 9.52 |
EPS(TTM)17.19
EY5.98%
EPS(NY)25.05
Fwd EY8.72%
FCF(TTM)8.68
FCFY3.02%
OCF(TTM)24.32
OCFY8.47%
SpS33.61
BVpS59.53
TBVpS58.07
PEG (NY)0.27
PEG (5Y)2.21
Graham Number151.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.24% | ||
| ROE | 34.82% | ||
| ROCE | 40.65% | ||
| ROIC | 31.87% | ||
| ROICexc | 50.53% | ||
| ROICexgc | 53.55% | ||
| OM | 75.8% | ||
| PM (TTM) | 61.68% | ||
| GM | 94.13% | ||
| FCFM | 25.83% |
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%
ROICexgc growth 3Y-19.02%
ROICexgc 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 690.06% | ||
| Cap/Sales | 46.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.65% | ||
| Profit Quality | 41.88% | ||
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 | ||
| Altman-Z | 28.9 |
F-Score6
WACC8.82%
ROIC/WACC3.61
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)79.34%
EPS 3Y50.08%
EPS 5Y7.56%
EPS Q2Q%-62.06%
EPS Next Y62.77%
EPS Next 2Y38.35%
EPS Next 3Y24.93%
EPS Next 5YN/A
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
Revenue Next Year9.11%
Revenue Next 2Y14.05%
Revenue Next 3Y12.47%
Revenue Next 5YN/A
EBIT growth 1Y10.37%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year17.13%
EBIT Next 3Y17.91%
EBIT Next 5YN/A
FCF growth 1Y-47.03%
FCF growth 3Y-36.45%
FCF growth 5Y-22.66%
OCF growth 1Y27.19%
OCF growth 3Y22.77%
OCF growth 5Y7.44%
TEXAS PACIFIC LAND CORP / TPL FAQ
What is the fundamental rating for TPL stock?
ChartMill assigns a fundamental rating of 8 / 10 to TPL.
Can you provide the valuation status for TEXAS PACIFIC LAND CORP?
ChartMill assigns a valuation rating of 6 / 10 to TEXAS PACIFIC LAND CORP (TPL). This can be considered as Fairly Valued.
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 16.71 and the Price/Book (PB) ratio is 4.82.
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%.