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 208 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make TPL suitable for 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.
Each year in the past 5 years TPL has been profitable.
TPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TPL has a Return On Assets of 34.01%. This is amongst the best in the industry. TPL outperforms 96.15% of its industry peers.
TPL has a better Return On Equity (38.15%) than 92.79% of its industry peers.
TPL's Return On Invested Capital of 34.02% is amongst the best of the industry. TPL outperforms 97.60% of its industry peers.
TPL had an Average Return On Invested Capital over the past 3 years of 40.76%. This is significantly above the industry average of 23.87%.
The 3 year average ROIC (40.76%) for TPL is well above the current ROIC(34.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.01% | ||
| ROE | 38.15% | ||
| ROIC | 34.02% |
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 63.24% is amongst the best of the industry. TPL outperforms 94.23% of its industry peers.
TPL's Profit Margin has been stable in the last couple of years.
TPL's Operating Margin of 76.02% is amongst the best of the industry. TPL outperforms 96.63% of its industry peers.
In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
TPL has a Gross Margin of 93.54%. This is amongst the best in the industry. TPL outperforms 98.56% 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 | 76.02% | ||
| PM (TTM) | 63.24% | ||
| GM | 93.54% |
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.
Compared to 1 year ago, TPL has about the same amount of shares outstanding.
TPL has less shares outstanding than it did 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 96.96. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 96.96, TPL belongs to the best of the industry, outperforming 98.56% of the companies in the same industry.
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 | 96.96 |
ROIC/WACC3.66
WACC9.29%
2.3 Liquidity
TPL has a Current Ratio of 7.68. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 7.68, TPL belongs to the best of the industry, outperforming 94.71% of the companies in the same industry.
TPL has a Quick Ratio of 7.68. 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 7.68, TPL belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.68 | ||
| Quick Ratio | 7.68 |
3. Growth
3.1 Past
TPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.27%.
Measured over the past 5 years, TPL shows a small growth in Earnings Per Share. The EPS has been growing by 7.56% on average per year.
TPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.36%.
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)6.27%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%5.43%
Revenue 1Y (TTM)10.36%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%12.54%
3.2 Future
Based on estimates for the next years, TPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.95% on average per year.
TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.07% yearly.
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
A Price/Earnings ratio of 49.33 indicates a quite expensive valuation of TPL.
TPL's Price/Earnings ratio is a bit more expensive when compared to the industry. TPL is more expensive than 66.83% of the companies in the same industry.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (27.61), we can say TPL is valued expensively.
A Price/Forward Earnings ratio of 35.94 indicates a quite expensive valuation of TPL.
Based on the Price/Forward Earnings ratio, TPL is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 37.13. TPL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.33 | ||
| Fwd PE | 35.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 71.63% 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 | 359.13 | ||
| EV/EBITDA | 38.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.95% in the coming years.
PEG (NY)1.77
PEG (5Y)6.53
EPS Next 2Y17.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, TPL is not a good candidate for dividend investing.
In the last 3 months the price of TPL has falen by -26.76%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TPL's Dividend Yield is slightly below the industry average, which is at 6.36.
Compared to an average S&P500 Dividend Yield of 2.32, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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.
TPL has decreased its dividend recently.
Dividend Growth(5Y)49.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
77.76% of the earnings are spent on dividend by TPL. This is not a sustainable payout ratio.
TPL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.76%
EPS Next 2Y17.95%
EPS Next 3YN/A
986.09
-7.53 (-0.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.02%
Inst Owner Change-2.19%
Ins Owners0.85%
Ins Owner Change0.69%
Market Cap22.67B
Analysts80
Price Target1122.98 (13.88%)
Short Float %6.92%
Short Ratio10.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend15.11
Dividend Growth(5Y)49.85%
DP77.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.8%
Min EPS beat(2)-70.62%
Max EPS beat(2)-0.97%
EPS beat(4)0
Avg EPS beat(4)-23.49%
Min EPS beat(4)-70.62%
Max EPS beat(4)-0.97%
EPS beat(8)3
Avg EPS beat(8)-8.6%
EPS beat(12)4
Avg EPS beat(12)-7.33%
EPS beat(16)5
Avg EPS beat(16)-5.56%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)4.39%
Revenue beat(4)1
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)4.39%
Revenue beat(8)4
Avg Revenue beat(8)1.28%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)1.06%
PT rev (1m)-11.21%
PT rev (3m)-13.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.37%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.99%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.33 | ||
| Fwd PE | 35.94 | ||
| P/S | 31.15 | ||
| P/FCF | 359.13 | ||
| P/OCF | 45.33 | ||
| P/B | 18.79 | ||
| P/tB | 19.35 | ||
| EV/EBITDA | 38.17 |
EPS(TTM)19.99
EY2.03%
EPS(NY)27.44
Fwd EY2.78%
FCF(TTM)2.75
FCFY0.28%
OCF(TTM)21.76
OCFY2.21%
SpS31.65
BVpS52.47
TBVpS50.96
PEG (NY)1.77
PEG (5Y)6.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.01% | ||
| ROE | 38.15% | ||
| ROCE | 43.39% | ||
| ROIC | 34.02% | ||
| ROICexc | 53.26% | ||
| ROICexgc | 56.45% | ||
| OM | 76.02% | ||
| PM (TTM) | 63.24% | ||
| GM | 93.54% | ||
| FCFM | 8.68% |
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-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1313.86% | ||
| Cap/Sales | 60.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 13.72% | ||
| Current Ratio | 7.68 | ||
| Quick Ratio | 7.68 | ||
| Altman-Z | 96.96 |
F-Score6
WACC9.29%
ROIC/WACC3.66
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)6.27%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%5.43%
EPS Next Y27.91%
EPS Next 2Y17.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.36%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%12.54%
Revenue Next Year16.31%
Revenue Next 2Y12.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.97%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year27.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-85.53%
FCF growth 3Y-36.45%
FCF growth 5Y-22.66%
OCF growth 1Y10.12%
OCF growth 3Y22.77%
OCF growth 5Y7.44%