TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
NYSE:TPL - New York Stock Exchange, Inc. - US88262P1021 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to TPL. TPL was compared to 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. TPL is quite expensive at the moment. 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
In the past year TPL was profitable.
TPL had a positive operating cash flow in the past year.
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
The Return On Assets of TPL (34.01%) is better than 96.24% of its industry peers.
Looking at the Return On Equity, with a value of 38.15%, TPL belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
TPL's Return On Invested Capital of 34.02% is amongst the best of the industry. TPL outperforms 97.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPL is significantly above the industry average of 23.55%.
The last Return On Invested Capital (34.02%) 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 | 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
Looking at the Profit Margin, with a value of 63.24%, TPL belongs to the top of the industry, outperforming 94.37% 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 76.02%, TPL belongs to the top of the industry, outperforming 96.71% of the companies in the same industry.
TPL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 93.54%, TPL belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
TPL's Gross Margin has been stable in the last couple of years.
| 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.
TPL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TPL has less shares outstanding
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
An Altman-Z score of 106.90 indicates that TPL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 106.90, TPL belongs to the best of the industry, outperforming 98.59% 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 | 106.9 |
ROIC/WACC3.63
WACC9.38%
2.3 Liquidity
A Current Ratio of 7.68 indicates that TPL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 7.68, TPL belongs to the best of the industry, outperforming 94.84% 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 95.31% 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%.
The Revenue has been growing slightly by 7.55% on average over the past years.
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
TPL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.57% yearly.
TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.73% yearly.
EPS Next Y31.01%
EPS Next 2Y24.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.04%
Revenue Next 2Y14.73%
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
With a Price/Earnings ratio of 55.01, TPL can be considered very expensive at the moment.
TPL's Price/Earnings ratio is a bit more expensive when compared to the industry. TPL is more expensive than 66.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. TPL is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 35.93, which means the current valuation is very expensive for TPL.
Based on the Price/Forward Earnings ratio, TPL is valued a bit more expensive than the industry average as 65.73% of the companies are valued more cheaply.
TPL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.01 | ||
| Fwd PE | 35.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than the industry average as 72.30% of the companies are valued more cheaply.
TPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 400.46 | ||
| EV/EBITDA | 42.32 |
4.3 Compensation for Growth
TPL's 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 24.57% in the coming years.
PEG (NY)1.77
PEG (5Y)7.28
EPS Next 2Y24.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, TPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.74, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 77.76% of its income as dividend. 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.
DP77.76%
EPS Next 2Y24.57%
EPS Next 3YN/A
1099.58
-5.46 (-0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.11%
Inst Owner Change2.65%
Ins Owners0.17%
Ins Owner Change8.92%
Market Cap25.28B
Analysts45
Price Target1264.8 (15.03%)
Short Float %6.01%
Short Ratio10.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)-3.12%
PT rev (3m)5.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.71%
Revenue NY rev (3m)-14.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.01 | ||
| Fwd PE | 35.93 | ||
| P/S | 34.74 | ||
| P/FCF | 400.46 | ||
| P/OCF | 50.54 | ||
| P/B | 20.96 | ||
| P/tB | 21.58 | ||
| EV/EBITDA | 42.32 |
EPS(TTM)19.99
EY1.82%
EPS(NY)30.6
Fwd EY2.78%
FCF(TTM)2.75
FCFY0.25%
OCF(TTM)21.76
OCFY1.98%
SpS31.65
BVpS52.47
TBVpS50.96
PEG (NY)1.77
PEG (5Y)7.28
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 | 106.9 |
F-Score6
WACC9.38%
ROIC/WACC3.63
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 Y31.01%
EPS Next 2Y24.57%
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 Year14.04%
Revenue Next 2Y14.73%
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%