TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
862.91 USD
-1.5 (-0.17%)
865.5 USD
+2.59 (+0.3%)
TPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 210 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. While showing a medium growth rate, TPL is valued expensive at the moment. This makes TPL very considerable 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 96.67% of its industry peers.
TPL has a better Return On Equity (34.82%) than 93.81% 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 97.62% 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 21.41%.
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 95.24% 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.
TPL has a better Operating Margin (75.80%) than 96.67% 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 98.57% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPL is creating value.
TPL has about the same amout of shares outstanding than it did 1 year ago.
TPL has less shares outstanding than it did 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 79.48. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
TPL's Altman-Z score of 79.48 is amongst the best of the industry. TPL outperforms 98.57% 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 | 79.48 |
ROIC/WACC3.68
WACC8.65%
2.3 Liquidity
A Current Ratio of 8.70 indicates that TPL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 8.70, TPL belongs to the best of the industry, outperforming 93.33% 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.
Looking at the Quick ratio, with a value of 8.70, TPL belongs to the top of the industry, outperforming 94.29% 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.
Measured over the past 5 years, TPL shows a small growth in Earnings Per Share. The EPS has been growing by 7.56% on average per year.
Looking at the last year, TPL shows a quite strong growth in Revenue. The Revenue has grown by 12.48% in the last year.
The Revenue has been growing slightly by 7.55% on average over the past years.
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 41.69.
Based on the Price/Earnings ratio, TPL is valued a bit more expensive than the industry average as 64.76% of the companies are valued more cheaply.
TPL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 35.13, 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 the industry average as 62.86% of the companies are valued more cheaply.
TPL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.69 | ||
| Fwd PE | 35.13 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than TPL, based on the Enterprise Value to EBITDA ratio.
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 | 99.4 | ||
| EV/EBITDA | 30.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TPL may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)5.52
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.
Compared to an average S&P500 Dividend Yield of 2.41, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
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 2Y11.61%
EPS Next 3YN/A
862.91
-1.5 (-0.17%)
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 Cap19.83B
Revenue(TTM)772.39M
Net Income(TTM)476.39M
Analysts74.29
Price Target930.56 (7.84%)
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 | 41.69 | ||
| Fwd PE | 35.13 | ||
| P/S | 25.67 | ||
| P/FCF | 99.4 | ||
| P/OCF | 35.49 | ||
| P/B | 14.5 | ||
| P/tB | 14.86 | ||
| EV/EBITDA | 30.27 |
EPS(TTM)20.7
EY2.4%
EPS(NY)24.56
Fwd EY2.85%
FCF(TTM)8.68
FCFY1.01%
OCF(TTM)24.32
OCFY2.82%
SpS33.61
BVpS59.53
TBVpS58.07
PEG (NY)2.29
PEG (5Y)5.52
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 | 79.48 |
F-Score6
WACC8.65%
ROIC/WACC3.68
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 41.69 and the Price/Book (PB) ratio is 14.5.
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.