TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
311.87 USD
+8.92 (+2.94%)
312.92 USD
+1.05 (+0.34%)
Taking everything into account, TPL scores 8 out of 10 in our fundamental rating. TPL was compared to 208 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, TPL could be worth investigating further 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.
TPL had positive earnings in each of the past 5 years.
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 31.24%, TPL belongs to the top of the industry, outperforming 96.63% 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 93.27% 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 97.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPL is significantly above the industry average of 21.83%.
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
With an excellent Profit Margin value of 61.68%, TPL belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
In the last couple of years the Profit Margin of TPL has remained more or less at the same level.
With an excellent Operating Margin value of 75.80%, TPL belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
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 98.08% 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.
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 31.07. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPL (31.07) is better than 97.60% 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 | 31.07 |
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.
With an excellent Current ratio value of 8.70, TPL belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
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 94.23% 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.
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
Based on estimates for the next years, TPL will show a very strong growth in Earnings Per Share. The EPS will grow by 24.93% on average per year.
Based on estimates for the next years, TPL will show a quite strong growth in Revenue. The Revenue will grow by 12.47% on average per year.
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
Based on the Price/Earnings ratio of 18.14, the valuation of TPL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TPL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (27.19), we can say TPL is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.45 indicates a correct valuation of TPL.
Based on the Price/Forward Earnings ratio, TPL is valued a bit cheaper than 61.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TPL to the average of the S&P500 Index (23.92), we can say TPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
TPL's Enterprise Value to EBITDA ratio is in line with the industry average.
TPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.92 | ||
| EV/EBITDA | 10.41 |
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.
TPL has an outstanding profitability rating, which may justify a higher PE ratio.
TPL's earnings are expected to grow with 24.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)2.41
EPS Next 2Y38.35%
EPS Next 3Y24.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, TPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.91, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.92, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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.
TPL has decreased its dividend 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.
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%
311.87
+8.92 (+2.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.43%
Inst Owner Change0.41%
Ins Owners5.21%
Ins Owner Change0.06%
Market Cap7.17B
Revenue(TTM)772.39M
Net Income(TTM)476.39M
Analysts75
Price TargetN/A
Short Float %N/A
Short Ratio10.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend5.04
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)0%
PT rev (3m)-13.15%
EPS NQ rev (1m)-66.67%
EPS NQ rev (3m)-90.75%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-13.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)1.9%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 12.45 | ||
| P/S | 9.28 | ||
| P/FCF | 35.92 | ||
| P/OCF | 12.82 | ||
| P/B | 5.24 | ||
| P/tB | 5.37 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)17.19
EY5.51%
EPS(NY)25.05
Fwd EY8.03%
FCF(TTM)8.68
FCFY2.78%
OCF(TTM)24.32
OCFY7.8%
SpS33.61
BVpS59.53
TBVpS58.07
PEG (NY)0.29
PEG (5Y)2.41
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 | 31.07 |
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 5Y7.53%
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 5 / 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 18.14 and the Price/Book (PB) ratio is 5.24.
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%.