TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
NYSE:TPL - New York Stock Exchange, Inc. - US88262P1021 - Common Stock - Currency: USD
Taking everything into account, TPL scores 7 out of 10 in our fundamental rating. TPL was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. TPL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TPL is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, TPL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
TPL had positive earnings in the past year.
TPL had a positive operating cash flow in the past year.
Each year in the past 5 years TPL has been profitable.
In the past 5 years TPL always reported a positive cash flow from operatings.
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.
Measured over the past 3 years, the Average Return On Invested Capital for TPL is significantly above the industry average of 25.77%.
The last Return On Invested Capital (35.21%) 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 | 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
With an excellent Profit Margin value of 64.32%, 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 Profit Margin of TPL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 76.38%, TPL belongs to the top of the industry, outperforming 96.70% of the companies in the same industry.
In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
TPL's Gross Margin of 93.47% is amongst the best of the industry. TPL outperforms 98.58% of its industry peers.
TPL's Gross Margin has been stable in the last couple of years.
| 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.
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 163.11. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
TPL has a better Altman-Z score (163.11) than 99.53% 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 | 163.11 |
ROIC/WACC3.39
WACC10.38%
2.3 Liquidity
A Current Ratio of 10.56 indicates that TPL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 10.56, TPL belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
A Quick Ratio of 10.56 indicates that TPL has no problem at all paying its short term obligations.
TPL has a better Quick ratio (10.56) than 96.70% of its industry peers.
| 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.
TPL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.56% yearly.
Looking at the last year, TPL shows a quite strong growth in Revenue. The Revenue has grown by 11.75% in the last year.
TPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
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
The Earnings Per Share is expected to grow by 24.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.10% on average over the next years. This is quite good.
EPS Next Y31.01%
EPS Next 2Y24.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.44%
Revenue Next 2Y19.1%
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.
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
Based on the Price/Earnings ratio of 67.68, 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 69.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.78. TPL is valued rather expensively when compared to this.
TPL is valuated quite expensively with a Price/Forward Earnings ratio of 51.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 66.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, TPL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.68 | ||
| Fwd PE | 51.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than the industry average as 76.42% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 479.79 | ||
| EV/EBITDA | 53.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPL does not grow enough to justify the current Price/Earnings ratio.
TPL has an outstanding profitability rating, which 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)2.18
PEG (5Y)8.96
EPS Next 2Y24.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 7.32, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.46, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
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
1334.63
-1.16 (-0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.11%
Inst Owner Change-49.5%
Ins Owners0.17%
Ins Owner Change8.35%
Market Cap30.67B
Analysts45
Price Target1305.6 (-2.18%)
Short Float %5.85%
Short Ratio9.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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)8.47%
PT rev (3m)126.5%
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)-11.17%
Revenue NY rev (3m)-9.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.68 | ||
| Fwd PE | 51.66 | ||
| P/S | 43.45 | ||
| P/FCF | 479.79 | ||
| P/OCF | 62.51 | ||
| P/B | 27.08 | ||
| P/tB | 27.95 | ||
| EV/EBITDA | 53.69 |
EPS(TTM)19.72
EY1.48%
EPS(NY)25.84
Fwd EY1.94%
FCF(TTM)2.78
FCFY0.21%
OCF(TTM)21.35
OCFY1.6%
SpS30.71
BVpS49.28
TBVpS47.75
PEG (NY)2.18
PEG (5Y)8.96
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 | 163.11 |
F-Score7
WACC10.38%
ROIC/WACC3.39
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 Year18.44%
Revenue Next 2Y19.1%
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%