TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
NYSE:TPL - US88262P1021 - Common Stock
908.48 USD
+28.2 (+3.2%)
We assign a fundamental rating of 7 out of 10 to TPL. TPL was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. TPL gets an excellent profitability rating and is at the same time showing great financial health properties. TPL is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make TPL suitable for quality investing!
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.
Each year in the past 5 years TPL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 32.87%, TPL belongs to the top of the industry, outperforming 96.17% of the companies in the same industry.
TPL has a better Return On Equity (35.82%) than 92.34% of its industry peers.
With an excellent Return On Invested Capital value of 32.52%, TPL belongs to the best of the industry, outperforming 97.61% 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 23.53%.
The 3 year average ROIC (40.76%) for TPL is well above the current ROIC(32.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.87% | ||
| ROE | 35.82% | ||
| ROIC | 32.52% |
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's Profit Margin of 62.16% is amongst the best of the industry. TPL outperforms 94.26% of its industry peers.
TPL's Profit Margin has been stable in the last couple of years.
TPL has a Operating Margin of 75.88%. This is amongst the best in the industry. TPL outperforms 96.65% of its industry peers.
TPL's Operating Margin has been stable in the last couple of years.
TPL's Gross Margin of 94.53% is amongst the best of the industry. TPL outperforms 98.56% of its industry peers.
TPL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.88% | ||
| PM (TTM) | 62.16% | ||
| GM | 94.53% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TPL is creating value.
Compared to 1 year ago, TPL has about the same amount of shares outstanding.
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 108.73. 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 108.73, TPL belongs to the top of the industry, outperforming 98.56% of the companies in the same industry.
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 | 108.73 |
ROIC/WACC3.64
WACC8.93%
2.3 Liquidity
TPL has a Current Ratio of 14.58. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
TPL has a Current ratio of 14.58. This is amongst the best in the industry. TPL outperforms 96.65% of its industry peers.
TPL has a Quick Ratio of 14.58. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TPL (14.58) is better than 96.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.58 | ||
| Quick Ratio | 14.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.19% over the past year.
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 10.69% 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)3.19%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%1.41%
Revenue 1Y (TTM)10.69%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%8.82%
3.2 Future
The Earnings Per Share is expected to grow by 17.95% on average over the next years. This is quite good.
Based on estimates for the next years, TPL will show a quite strong growth in Revenue. The Revenue will grow by 12.07% on average per year.
EPS Next Y27.91%
EPS Next 2Y17.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.31%
Revenue Next 2Y12.07%
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 45.29, 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 66.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (26.76), we can say TPL is valued expensively.
The Price/Forward Earnings ratio is 33.11, which means the current valuation is very expensive for TPL.
65.55% of the companies in the same industry are cheaper than TPL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, TPL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.29 | ||
| Fwd PE | 33.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than the industry average as 71.29% of the companies are valued more cheaply.
TPL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 244.75 | ||
| EV/EBITDA | 32.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 17.95% in the coming years.
PEG (NY)1.62
PEG (5Y)5.99
EPS Next 2Y17.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, TPL is not a good candidate for dividend investing.
The stock price of TPL dropped by -30.82% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TPL's Dividend Yield is slightly below the industry average, which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.36, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of TPL grows each year by 49.85%, which is quite nice.
TPL has paid a dividend for at least 10 years, which is 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
TPL pays out 79.64% of its income as dividend. This is not a sustainable payout ratio.
TPL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.64%
EPS Next 2Y17.95%
EPS Next 3YN/A
NYSE:TPL (8/22/2025, 2:49:23 PM)
908.48
+28.2 (+3.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.4%
Inst Owner Change-1.08%
Ins Owners0.85%
Ins Owner Change-0.13%
Market Cap20.89B
Analysts83.33
Price Target1122.98 (23.61%)
Short Float %7.05%
Short Ratio10.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend15.11
Dividend Growth(5Y)49.85%
DP79.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-71.67%
Min EPS beat(2)-72.72%
Max EPS beat(2)-70.62%
EPS beat(4)0
Avg EPS beat(4)-39.67%
Min EPS beat(4)-72.72%
Max EPS beat(4)-0.97%
EPS beat(8)2
Avg EPS beat(8)-19.59%
EPS beat(12)4
Avg EPS beat(12)-13.06%
EPS beat(16)5
Avg EPS beat(16)-10.03%
Revenue beat(2)0
Avg Revenue beat(2)-6.18%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)-2.49%
Revenue beat(4)1
Avg Revenue beat(4)-3.22%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)4.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.84%
Revenue beat(16)7
Avg Revenue beat(16)0.39%
PT rev (1m)-11.21%
PT rev (3m)-13.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.29 | ||
| Fwd PE | 33.11 | ||
| P/S | 28.12 | ||
| P/FCF | 244.75 | ||
| P/OCF | 39.95 | ||
| P/B | 16.2 | ||
| P/tB | 16.64 | ||
| EV/EBITDA | 32.47 |
EPS(TTM)20.06
EY2.21%
EPS(NY)27.44
Fwd EY3.02%
FCF(TTM)3.71
FCFY0.41%
OCF(TTM)22.74
OCFY2.5%
SpS32.31
BVpS56.07
TBVpS54.59
PEG (NY)1.62
PEG (5Y)5.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.87% | ||
| ROE | 35.82% | ||
| ROCE | 41.48% | ||
| ROIC | 32.52% | ||
| ROICexc | 54.23% | ||
| ROICexgc | 57.44% | ||
| OM | 75.88% | ||
| PM (TTM) | 62.16% | ||
| GM | 94.53% | ||
| FCFM | 11.49% |
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1020.39% | ||
| Cap/Sales | 58.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.18% | ||
| Profit Quality | 18.48% | ||
| Current Ratio | 14.58 | ||
| Quick Ratio | 14.58 | ||
| Altman-Z | 108.73 |
F-Score7
WACC8.93%
ROIC/WACC3.64
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)3.19%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%1.41%
EPS Next Y27.91%
EPS Next 2Y17.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.69%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%8.82%
Revenue Next Year16.31%
Revenue Next 2Y12.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.34%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year33.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-79.2%
FCF growth 3Y-36.45%
FCF growth 5Y-22.66%
OCF growth 1Y15.91%
OCF growth 3Y22.77%
OCF growth 5Y7.44%