TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
NYSE:TPL - New York Stock Exchange, Inc. - US88262P1021 - Common Stock - Currency: USD
Overall TPL gets a fundamental rating of 7 out of 10. We evaluated TPL against 212 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make TPL suitable for growth and 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.
In the past 5 years TPL has always been profitable.
Each year in the past 5 years TPL had a positive operating cash flow.
1.2 Ratios
TPL's Return On Assets of 36.37% is amongst the best of the industry. TPL outperforms 95.75% of its industry peers.
TPL has a Return On Equity of 40.09%. This is amongst the best in the industry. TPL outperforms 91.98% of its industry peers.
With an excellent Return On Invested Capital value of 35.21%, TPL belongs to the best of the industry, outperforming 97.17% of the companies in the same industry.
TPL had an Average Return On Invested Capital over the past 3 years of 40.76%. This is significantly above the industry average of 27.42%.
The 3 year average ROIC (40.76%) for TPL is well above the current ROIC(35.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.37% | ||
| ROE | 40.09% | ||
| ROIC | 35.21% |
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 better Profit Margin (64.32%) than 95.28% of its industry peers.
TPL's Profit Margin has been stable in the last couple of years.
The Operating Margin of TPL (76.38%) is better than 96.70% of its industry peers.
In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
The Gross Margin of TPL (93.47%) is better than 98.58% 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 | 76.38% | ||
| PM (TTM) | 64.32% | ||
| GM | 93.47% |
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.
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 158.81 indicates that TPL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TPL (158.81) is better than 99.53% 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 | 158.81 |
ROIC/WACC3.41
WACC10.34%
2.3 Liquidity
A Current Ratio of 10.56 indicates that TPL has no problem at all paying its short term obligations.
TPL has a Current ratio of 10.56. This is amongst the best in the industry. TPL outperforms 95.75% of its industry peers.
TPL has a Quick Ratio of 10.56. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 10.56, TPL belongs to the best of the industry, outperforming 95.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.56 | ||
| Quick Ratio | 10.56 |
3. Growth
3.1 Past
TPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.12%, which is quite good.
The Earnings Per Share has been growing slightly by 7.56% on average over the past years.
Looking at the last year, TPL shows a quite strong growth in Revenue. The Revenue has grown by 11.75% 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)12.12%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%4.68%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%11.47%
3.2 Future
TPL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.57% yearly.
The Revenue is expected to grow by 23.67% on average over the next years. This is a very strong growth
EPS Next Y31.01%
EPS Next 2Y24.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year31.21%
Revenue Next 2Y23.67%
Revenue Next 3YN/A
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 65.85, TPL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TPL is valued a bit more expensive than the industry average as 68.87% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.29, TPL is valued quite expensively.
Based on the Price/Forward Earnings ratio of 50.27, the valuation of TPL can be described as expensive.
68.40% of the companies in the same industry are cheaper than TPL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TPL to the average of the S&P500 Index (21.08), we can say TPL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.85 | ||
| Fwd PE | 50.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 76.42% of the companies in the same industry.
TPL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 466.85 | ||
| EV/EBITDA | 52.23 |
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.
A more expensive valuation may be justified as TPL's earnings are expected to grow with 24.57% in the coming years.
PEG (NY)2.12
PEG (5Y)8.71
EPS Next 2Y24.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 7.82, TPL is paying slightly less dividend.
With a Dividend Yield of 0.49, TPL pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
The dividend of TPL decreased recently.
Dividend Growth(5Y)49.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
76.51% of the earnings are spent on dividend by TPL. This is not a sustainable payout ratio.
The dividend of TPL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP76.51%
EPS Next 2Y24.57%
EPS Next 3YN/A
1298.64
+21.06 (+1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.11%
Inst Owner Change0.07%
Ins Owners0.17%
Ins Owner Change8.34%
Market Cap29.84B
Analysts45
Price Target1326 (2.11%)
Short Float %6.7%
Short Ratio11.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend15.11
Dividend Growth(5Y)49.85%
DP76.51%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.66%
Min EPS beat(2)-14.35%
Max EPS beat(2)-0.97%
EPS beat(4)1
Avg EPS beat(4)-5.32%
Min EPS beat(4)-14.35%
Max EPS beat(4)2.07%
EPS beat(8)3
Avg EPS beat(8)-1.73%
EPS beat(12)4
Avg EPS beat(12)-2.11%
EPS beat(16)6
Avg EPS beat(16)-0.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.27%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)4.39%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)8.98%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)5
Avg Revenue beat(12)-0.46%
Revenue beat(16)9
Avg Revenue beat(16)1.89%
PT rev (1m)10.17%
PT rev (3m)130.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-65.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.6%
Revenue NY rev (3m)17.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.85 | ||
| Fwd PE | 50.27 | ||
| P/S | 42.28 | ||
| P/FCF | 466.85 | ||
| P/OCF | 60.82 | ||
| P/B | 26.35 | ||
| P/tB | 27.2 | ||
| EV/EBITDA | 52.23 |
EPS(TTM)19.72
EY1.52%
EPS(NY)25.84
Fwd EY1.99%
FCF(TTM)2.78
FCFY0.21%
OCF(TTM)21.35
OCFY1.64%
SpS30.71
BVpS49.28
TBVpS47.75
PEG (NY)2.12
PEG (5Y)8.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.37% | ||
| ROE | 40.09% | ||
| ROCE | 44.91% | ||
| ROIC | 35.21% | ||
| ROICexc | 50.89% | ||
| ROICexgc | 53.82% | ||
| OM | 76.38% | ||
| PM (TTM) | 64.32% | ||
| GM | 93.47% | ||
| FCFM | 9.06% |
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%
ROICexcg growth 3Y-19.02%
ROICexcg 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-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1696.01% | ||
| Cap/Sales | 60.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.95% | ||
| Profit Quality | 14.08% | ||
| Current Ratio | 10.56 | ||
| Quick Ratio | 10.56 | ||
| Altman-Z | 158.81 |
F-Score7
WACC10.34%
ROIC/WACC3.41
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)12.12%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%4.68%
EPS Next Y31.01%
EPS Next 2Y24.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.75%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%11.47%
Revenue Next Year31.21%
Revenue Next 2Y23.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.92%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year49.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-82.14%
FCF growth 3Y-36.45%
FCF growth 5Y-22.66%
OCF growth 1Y17.3%
OCF growth 3Y22.77%
OCF growth 5Y7.44%