TEXAS PACIFIC LAND CORP (TPL)
US88262P1021 - Common Stock
TPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 213 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. While showing a medium growth rate, TPL is valued expensive at the moment.
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.
In the past 5 years TPL has always been profitable.
In the past 5 years TPL always reported a positive cash flow from operatings.
1.2 Ratios
TPL has a better Return On Assets (34.43%) than 94.81% of its industry peers.
The Return On Equity of TPL (38.62%) is better than 89.62% of its industry peers.
TPL's Return On Invested Capital of 34.16% is amongst the best of the industry. TPL outperforms 96.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPL is above the industry average of 38.62%.
The last Return On Invested Capital (34.16%) for TPL is well below the 3 year average (42.35%), which needs to be investigated, but indicates that TPL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.43% | ||
| ROE | 38.62% | ||
| ROIC | 34.16% |
ROA(3y)40.43%
ROA(5y)41.07%
ROE(3y)46.02%
ROE(5y)47.31%
ROIC(3y)42.35%
ROIC(5y)42.6%
1.3 Margins
TPL has a Profit Margin of 65.74%. This is amongst the best in the industry. TPL outperforms 92.45% of its industry peers.
TPL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 78.43%, TPL belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
In the last couple of years the Operating Margin of TPL has declined.
TPL's Gross Margin of 94.22% is amongst the best of the industry. TPL outperforms 99.06% of its industry peers.
TPL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.43% | ||
| PM (TTM) | 65.74% | ||
| GM | 94.22% |
OM growth 3Y2.33%
OM growth 5Y-2.4%
PM growth 3Y3.36%
PM growth 5Y-1.67%
GM growth 3Y-0.21%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPL is creating value.
The number of shares outstanding for TPL has been reduced compared to 1 year ago.
The number of shares outstanding for TPL has been increased 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 66.13. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
TPL has a better Altman-Z score (66.13) than 98.58% 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 | 66.13 |
ROIC/WACC3.72
WACC9.19%
2.3 Liquidity
A Current Ratio of 13.39 indicates that TPL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 13.39, TPL belongs to the top of the industry, outperforming 97.64% of the companies in the same industry.
TPL has a Quick Ratio of 13.39. 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 13.39, TPL belongs to the top of the industry, outperforming 97.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.39 | ||
| Quick Ratio | 13.39 |
3. Growth
3.1 Past
The earnings per share for TPL have decreased strongly by -66.63% in the last year.
Measured over the past years, TPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.13% on average per year.
The Revenue has decreased by -1.06% in the past year.
The Revenue has been growing by 16.04% on average over the past years. This is quite good.
EPS 1Y (TTM)-66.63%
EPS 3Y3.39%
EPS 5Y-8.13%
EPS Q2Q%-55.8%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y27.8%
Revenue growth 5Y16.04%
Sales Q2Q%18.98%
3.2 Future
Based on estimates for the next years, TPL will show a decrease in Earnings Per Share. The EPS will decrease by -0.08% on average per year.
The Revenue is expected to grow by 10.84% on average over the next years. This is quite good.
EPS Next Y-14.65%
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
EPS Next 5YN/A
Revenue Next Year13.63%
Revenue Next 2Y12.95%
Revenue Next 3Y10.84%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.66, the valuation of TPL can be described as expensive.
TPL's Price/Earnings ratio is a bit more expensive when compared to the industry. TPL is more expensive than 75.00% of the companies in the same industry.
TPL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.05.
The Price/Forward Earnings ratio is 8.32, which indicates a very decent valuation of TPL.
Based on the Price/Forward Earnings ratio, TPL is valued a bit cheaper than 72.17% of the companies in the same industry.
TPL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 77.36% of the companies in the same industry.
60.38% of the companies in the same industry are cheaper than TPL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.22 | ||
| EV/EBITDA | 24.97 |
4.3 Compensation for Growth
TPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 5.97, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of TPL has a limited annual growth rate of 1.23%.
TPL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.49% of the earnings are spent on dividend by TPL. This is a low number and sustainable payout ratio.
DP23.49%
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
TEXAS PACIFIC LAND CORP
NYSE:TPL (5/31/2024, 7:09:56 PM)
After market: 614.31 0 (0%)614.31
-0.23 (-0.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 8.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.43% | ||
| ROE | 38.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 78.43% | ||
| PM (TTM) | 65.74% | ||
| GM | 94.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 13.39 | ||
| Quick Ratio | 13.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-66.63%
EPS 3Y3.39%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y27.8%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y