TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
358.68 USD
+3.9 (+1.1%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, TPL is valued expensive at the moment. These ratings could make TPL a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year TPL was profitable.
- 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
- The Return On Assets of TPL (31.24%) is better than 96.62% of its industry peers.
- TPL has a better Return On Equity (34.82%) than 93.24% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 31.87%, TPL belongs to the top of the industry, outperforming 97.58% 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 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
- TPL has a better Profit Margin (61.68%) than 95.17% of its industry peers.
- TPL's Profit Margin has been stable in the last couple of years.
- TPL's Operating Margin of 75.80% is amongst the best of the industry. TPL outperforms 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.
- 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 | 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.
- Compared to 1 year ago, TPL has about the same amount of shares outstanding.
- 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 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.
- TPL has a Current ratio of 8.70. This is amongst the best in the industry. TPL outperforms 93.24% of its industry peers.
- 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 has a better Quick ratio (8.70) 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.
- The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
- Looking at the last year, TPL shows a quite strong growth in Revenue. The Revenue has grown by 12.48% in the last year.
- Measured over the past years, TPL shows a small growth in Revenue. The Revenue has been growing by 7.55% on average per year.
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.
- TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.76% yearly.
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
- TPL is valuated rather expensively with a Price/Earnings ratio of 20.87.
- TPL's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, TPL is valued a bit cheaper.
- The Price/Forward Earnings ratio is 44.02, which means the current valuation is very expensive for TPL.
- 61.35% of the companies in the same industry are cheaper than TPL, based on the Price/Forward Earnings ratio.
- 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 | 20.87 | ||
| Fwd PE | 44.02 |
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 | 41.32 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
- TPL has an outstanding profitability rating, which may justify a higher PE ratio.
- TPL's earnings are expected to decrease with -13.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.77
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.
- With a Dividend Yield of 0.62, TPL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
- On average, the dividend of TPL grows each year by 49.85%, which is quite nice.
- 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)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.
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 20.87 and the Price/Book (PB) ratio is 6.03.
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%.