TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
281.39 USD
-12.42 (-4.23%)
286 USD
+4.61 (+1.64%)
TPL gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making TPL a very profitable company, without any liquidiy or solvency issues. TPL is growing strongly while it is still valued neutral. This is a good combination! These ratings could make TPL a good candidate 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.
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
TPL has a Return On Assets of 31.24%. This is amongst the best in the industry. TPL outperforms 96.63% of its industry peers.
The Return On Equity of TPL (34.82%) is better than 93.27% 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 97.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TPL 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
The Profit Margin of TPL (61.68%) is better than 95.19% of its industry peers.
TPL's Profit Margin has been stable in the last couple of years.
TPL has a better Operating Margin (75.80%) than 97.12% of its industry peers.
TPL's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 94.13%, TPL belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
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.
TPL has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 28.39 indicates that TPL is not in any danger for bankruptcy at the moment.
TPL's Altman-Z score of 28.39 is amongst the best of the industry. TPL outperforms 97.60% 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 | 28.39 |
ROIC/WACC3.61
WACC8.82%
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 93.75% 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.
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
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 7.56% yearly.
The Revenue has grown by 12.48% in the past year. This is quite good.
TPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
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
The Earnings Per Share is expected to grow by 24.93% on average over the next years. This is a very strong growth
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.37, TPL is valued correctly.
TPL's Price/Earnings is on the same level as the industry average.
TPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
TPL is valuated reasonably with a Price/Forward Earnings ratio of 11.23.
67.79% of the companies in the same industry are more expensive than TPL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.57. TPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TPL.
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 | 32.41 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
TPL's 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.
TPL's earnings are expected to grow with 24.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)2.17
EPS Next 2Y38.35%
EPS Next 3Y24.93%
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 3.96, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.94, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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.
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.
TPL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.02%
EPS Next 2Y38.35%
EPS Next 3Y24.93%
281.39
-12.42 (-4.23%)
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%
Market Cap6.47B
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 | 0.74% |
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)-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 | 16.37 | ||
| Fwd PE | 11.23 | ||
| P/S | 8.37 | ||
| P/FCF | 32.41 | ||
| P/OCF | 11.57 | ||
| P/B | 4.73 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)17.19
EY6.11%
EPS(NY)25.05
Fwd EY8.9%
FCF(TTM)8.68
FCFY3.09%
OCF(TTM)24.32
OCFY8.64%
SpS33.61
BVpS59.53
TBVpS58.07
PEG (NY)0.26
PEG (5Y)2.17
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 | 28.39 |
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 16.37 and the Price/Book (PB) ratio is 4.73.
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%.