TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
896.43 USD
+12.87 (+1.46%)
905 USD
+8.57 (+0.96%)
Taking everything into account, TPL scores 7 out of 10 in our fundamental rating. TPL was compared to 210 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 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.
TPL had a positive operating cash flow in the past year.
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 better Return On Assets (31.24%) than 96.67% of its industry peers.
TPL's Return On Equity of 34.82% is amongst the best of the industry. TPL outperforms 93.81% of its industry peers.
TPL has a Return On Invested Capital of 31.87%. This is amongst the best in the industry. TPL outperforms 97.62% 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 21.28%.
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 has a Profit Margin of 61.68%. This is amongst the best in the industry. TPL outperforms 95.24% of its industry peers.
In the last couple of years the Profit Margin of TPL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 75.80%, TPL belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
TPL's Operating Margin has been stable in the last couple of years.
The Gross Margin of TPL (94.13%) is better than 98.57% 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
TPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
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
TPL has an Altman-Z score of 82.42. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPL (82.42) is better than 98.57% 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 | 82.42 |
ROIC/WACC3.66
WACC8.7%
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.
TPL has a better Current ratio (8.70) than 92.86% 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.
Looking at the Quick ratio, with a value of 8.70, TPL belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.21% over the past year.
TPL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.56% yearly.
TPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
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)6.21%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%13.82%
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 quite strong growth in Earnings Per Share. The EPS will grow by 11.61% on average per year.
TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.11% yearly.
EPS Next Y18.18%
EPS Next 2Y11.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.02%
Revenue Next 2Y14.11%
Revenue Next 3YN/A
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
TPL is valuated quite expensively with a Price/Earnings ratio of 43.31.
Compared to the rest of the industry, the Price/Earnings ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 65.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. TPL is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 36.49, 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 62.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, TPL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.31 | ||
| Fwd PE | 36.49 |
4.2 Price Multiples
TPL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TPL is more expensive than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.26 | ||
| EV/EBITDA | 31.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPL does not grow enough to justify the current Price/Earnings ratio.
TPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)5.73
EPS Next 2Y11.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, TPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.90, 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 2.41.
| 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 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
TPL pays out 31.02% of its income as dividend. This is a sustainable payout ratio.
TPL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.02%
EPS Next 2Y11.61%
EPS Next 3YN/A
896.43
+12.87 (+1.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.92%
Inst Owner Change-0.02%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap20.60B
Revenue(TTM)772.39M
Net Income(TTM)476.39M
Analysts74.29
Price Target930.56 (3.81%)
Short Float %7.02%
Short Ratio11.79
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-Date
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)-16.76%
PT rev (3m)-17.14%
EPS NQ rev (1m)-71.93%
EPS NQ rev (3m)-71.93%
EPS NY rev (1m)-5.31%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.31 | ||
| Fwd PE | 36.49 | ||
| P/S | 26.67 | ||
| P/FCF | 103.26 | ||
| P/OCF | 36.86 | ||
| P/B | 15.06 | ||
| P/tB | 15.44 | ||
| EV/EBITDA | 31.48 |
EPS(TTM)20.7
EY2.31%
EPS(NY)24.56
Fwd EY2.74%
FCF(TTM)8.68
FCFY0.97%
OCF(TTM)24.32
OCFY2.71%
SpS33.61
BVpS59.53
TBVpS58.07
PEG (NY)2.38
PEG (5Y)5.73
Graham Number166.51
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 | 82.42 |
F-Score6
WACC8.7%
ROIC/WACC3.66
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)6.21%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%13.82%
EPS Next Y18.18%
EPS Next 2Y11.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
Revenue Next Year17.02%
Revenue Next 2Y14.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.37%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year34.67%
EBIT Next 3YN/A
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 7 / 10 to TPL.
What is the valuation status for TPL stock?
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.
Can you provide the PE and PB ratios for TPL stock?
The Price/Earnings (PE) ratio for TEXAS PACIFIC LAND CORP (TPL) is 43.31 and the Price/Book (PB) ratio is 15.06.
Can you provide the expected EPS growth for TPL stock?
The Earnings per Share (EPS) of TEXAS PACIFIC LAND CORP (TPL) is expected to grow by 18.18% in the next year.