TEXAS PACIFIC LAND CORP (TPL)
US88262P1021 - Common Stock
We assign a fundamental rating of 6 out of 10 to TPL. TPL was compared to 214 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 quite expensive at the moment. It does show a decent growth rate.
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 has a better Return On Assets (35.08%) than 94.39% of its industry peers.
TPL has a better Return On Equity (38.88%) than 87.38% of its industry peers.
With an excellent Return On Invested Capital value of 34.32%, TPL belongs to the best of the industry, outperforming 95.79% of the companies in the same industry.
TPL had an Average Return On Invested Capital over the past 3 years of 42.35%. This is in line with the industry average of 44.14%.
The 3 year average ROIC (42.35%) for TPL is well above the current ROIC(34.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.08% | ||
| ROE | 38.88% | ||
| ROIC | 34.32% |
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 better Profit Margin (64.23%) than 90.65% of its industry peers.
TPL's Profit Margin has declined in the last couple of years.
The Operating Margin of TPL (76.96%) is better than 93.93% of its industry peers.
TPL's Operating Margin has declined in the last couple of years.
TPL has a Gross Margin of 94.69%. This is amongst the best in the industry. TPL outperforms 99.07% of its industry peers.
TPL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.96% | ||
| PM (TTM) | 64.23% | ||
| GM | 94.69% |
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
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 less shares outstanding
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 73.68. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPL (73.68) is better than 98.60% 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 | 73.68 |
ROIC/WACC3.76
WACC9.13%
2.3 Liquidity
TPL has a Current Ratio of 18.70. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
TPL has a better Current ratio (18.70) than 98.60% of its industry peers.
A Quick Ratio of 18.70 indicates that TPL has no problem at all paying its short term obligations.
The Quick ratio of TPL (18.70) is better than 99.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 18.7 | ||
| Quick Ratio | 18.7 |
3. Growth
3.1 Past
The earnings per share for TPL have decreased strongly by -56.58% in the last year.
TPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.13% yearly.
The Revenue has decreased by -5.37% in the past year.
TPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.04% yearly.
EPS 1Y (TTM)-56.58%
EPS 3Y3.39%
EPS 5Y-8.13%
EPS growth Q2Q-62.06%
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y27.8%
Revenue growth 5Y16.04%
Revenue growth Q2Q9.14%
3.2 Future
The Earnings Per Share is expected to decrease by -0.08% on average over the next years.
Based on estimates for the next years, TPL will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
EPS Next Y-15.4%
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
EPS Next 5YN/A
Revenue Next Year13.99%
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
A Price/Earnings ratio of 22.72 indicates a rather expensive valuation of TPL.
Based on the Price/Earnings ratio, TPL is valued a bit more expensive than the industry average as 73.83% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (28.11), we can say TPL is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.85, TPL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TPL is valued a bit more expensive than 70.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TPL to the average of the S&P500 Index (20.39), we can say TPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 26.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 77.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 61.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.62 | ||
| EV/EBITDA | 24.73 |
4.3 Compensation for Growth
The excellent profitability rating of TPL 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
With a yearly dividend of 0.84%, TPL is not a good candidate for dividend investing.
TPL's Dividend Yield is slightly below the industry average, which is at 5.88.
Compared to an average S&P500 Dividend Yield of 2.40, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of TPL has a limited annual growth rate of 1.23%.
TPL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TPL pays out 24.65% of its income as dividend. This is a sustainable payout ratio.
DP24.65%
EPS Next 2Y71.58%
EPS Next 3Y-0.08%
TEXAS PACIFIC LAND CORP
NYSE:TPL (5/7/2024, 7:27:04 PM)
After market: 569.72 0 (0%)569.72
-1.72 (-0.3%)
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 Cap13.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 26.85 | ||
| 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 | 35.08% | ||
| ROE | 38.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 76.96% | ||
| PM (TTM) | 64.23% | ||
| GM | 94.69% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 18.7 | ||
| Quick Ratio | 18.7 | ||
| 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)
Growth
EPS 1Y (TTM)-56.58%
EPS 3Y3.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y27.8%
Revenue growth 5Y
Revenue growth 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
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OCF growth 1Y
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