TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TPL • US88262P1021
336.68 USD
-11.68 (-3.35%)
At close: Feb 2, 2026
337.229 USD
+0.55 (+0.16%)
After Hours: 2/2/2026, 7:36:57 PM
We assign a fundamental rating of 7 out of 10 to TPL. TPL was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. TPL gets an excellent profitability rating and is at the same time showing great financial health properties. TPL is quite expensive at the moment. 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
- TPL had positive earnings in the past year.
- In the past year TPL had a positive cash flow from operations.
- 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
- TPL has a better Return On Assets (31.24%) than 96.62% of its industry peers.
- Looking at the Return On Equity, with a value of 34.82%, TPL belongs to the top 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.
- Measured over the past 3 years, the Average Return On Invested Capital for TPL 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
- Looking at the Profit Margin, with a value of 61.68%, TPL belongs to the top of the industry, outperforming 95.17% of the companies in the same industry.
- TPL's Profit Margin has been stable in the last couple of years.
- TPL has a better Operating Margin (75.80%) than 97.10% of its industry peers.
- TPL's Operating Margin has been stable in the last couple of years.
- TPL has a better Gross Margin (94.13%) than 98.07% 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.
- Compared to 1 year ago, TPL has about the same amount of shares outstanding.
- The number of shares outstanding for TPL has been reduced compared to 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 34.28. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
- TPL's Altman-Z score of 34.28 is amongst the best of the industry. TPL outperforms 97.10% 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 | 34.28 |
ROIC/WACC3.58
WACC8.9%
2.3 Liquidity
- A Current Ratio of 8.70 indicates that TPL has no problem at all paying its short term obligations.
- TPL's Current ratio of 8.70 is amongst the best of the industry. TPL outperforms 93.24% 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 93.72% 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.
- TPL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.53% yearly.
- 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 5Y7.53%
EPS Q2Q%-62.06%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
3.2 Future
- The Earnings Per Share is expected to decrease by -13.38% on average over the next years. This is quite bad
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- A Price/Earnings ratio of 19.59 indicates a rather expensive valuation of TPL.
- The rest of the industry has a similar Price/Earnings ratio as TPL.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, TPL is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 41.32, TPL can be considered very expensive at the moment.
- TPL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TPL is more expensive than 61.35% of the companies in the same industry.
- TPL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 41.32 |
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.
- TPL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.78 | ||
| EV/EBITDA | 11.72 |
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)2.6
EPS Next 2Y-21.1%
EPS Next 3Y-13.38%
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 3.64, TPL is paying slightly less dividend.
- With a Dividend Yield of 0.60, TPL pays less dividend than the S&P500 average, which is at 1.83.
| 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.
- 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 19.59 and the Price/Book (PB) ratio is 5.66.
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%.