TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPL - US88262P1021 - Common Stock
346.94 USD
+1.16 (+0.34%)
346.8 USD
-0.14 (-0.04%)
TPL gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 207 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make TPL a good candidate 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.
- TPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TPL has a Return On Assets of 31.24%. This is amongst the best in the industry. TPL outperforms 96.62% of its industry peers.
- TPL's Return On Equity of 34.82% is amongst the best of the industry. TPL outperforms 93.24% of its industry peers.
- TPL has a better Return On Invested Capital (31.87%) than 97.58% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 61.68%, TPL belongs to the top of the industry, outperforming 95.17% 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's Operating Margin of 75.80% is amongst the best of the industry. TPL outperforms 97.10% of its industry peers.
- In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
- With an excellent Gross Margin value of 94.13%, TPL belongs to the best of the industry, outperforming 98.07% 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
- TPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for TPL remains at a similar level compared to 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 34.05. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 34.05, TPL belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
- 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 | 34.05 |
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.
- With an excellent Current ratio value of 8.70, TPL belongs to the best of the industry, outperforming 93.24% of the companies in the same industry.
- 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's Quick ratio of 8.70 is amongst the best of the industry. TPL outperforms 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.
- TPL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.53% 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 5Y7.53%
EPS Q2Q%-62.06%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
3.2 Future
- 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 12.76% yearly.
EPS Next Y62.77%
EPS Next 2Y38.35%
EPS Next 3Y24.93%
EPS Next 5YN/A
Revenue Next Year8.59%
Revenue Next 2Y14.83%
Revenue Next 3Y12.76%
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.
- 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
- With a Price/Earnings ratio of 20.18, TPL is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of TPL is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. TPL is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 13.85, which indicates a correct valuation of TPL.
- TPL's Price/Forward Earnings ratio is in line with the industry average.
- TPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than the industry average as 60.39% of the companies are valued more cheaply.
- 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 | 39.96 | ||
| EV/EBITDA | 11.63 |
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.
- A more expensive valuation may be justified as TPL's earnings are expected to grow with 24.93% in the coming years.
PEG (NY)0.32
PEG (5Y)2.68
EPS Next 2Y38.35%
EPS Next 3Y24.93%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.62%, TPL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.74, TPL is paying slightly less dividend.
- With a Dividend Yield of 0.62, TPL pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
- The dividend of TPL is nicely growing with an annual growth rate of 49.85%!
- TPL has been paying a dividend for at least 10 years, so it has 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
- 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%
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 20.18 and the Price/Book (PB) ratio is 5.83.
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%.