TEXAS PACIFIC LAND CORP (TPL) Stock Fundamental Analysis
USA - NYSE:TPL - US88262P1021 - Common Stock
883.56 USD
-22.2 (-2.45%)
884 USD
+0.44 (+0.05%)
Taking everything into account, TPL scores 7 out of 10 in our fundamental rating. TPL was compared to 210 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
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
With an excellent Return On Assets value of 31.24%, TPL belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
TPL has a Return On Equity of 34.82%. This is amongst the best in the industry. TPL outperforms 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 31.87%, TPL belongs to the top of the industry, outperforming 97.62% 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 21.66%.
The 3 year average ROIC (40.76%) for TPL is well above the current ROIC(31.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.24% | ||
| ROE | 34.82% | ||
| ROIC | 31.87% |
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 61.68% is amongst the best of the industry. TPL outperforms 95.24% of its industry peers.
In the last couple of years the Profit Margin of TPL has remained more or less at the same level.
TPL has a Operating Margin of 75.80%. This is amongst the best in the industry. TPL outperforms 96.67% of its industry peers.
In the last couple of years the Operating Margin of TPL has remained more or less at the same level.
The Gross Margin of TPL (94.13%) is better than 98.57% 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 | 75.8% | ||
| PM (TTM) | 61.68% | ||
| GM | 94.13% |
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.
The number of shares outstanding for TPL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TPL has less shares outstanding
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.
2.2 Solvency
An Altman-Z score of 83.24 indicates that TPL is not in any danger for bankruptcy at the moment.
TPL's Altman-Z score of 83.24 is amongst the best of the industry. TPL outperforms 98.57% 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 | 83.24 |
ROIC/WACC3.63
WACC8.77%
2.3 Liquidity
TPL has a Current Ratio of 8.70. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.70, TPL belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
TPL has a Quick Ratio of 8.70. This indicates that TPL is financially healthy and has no problem in meeting its short term obligations.
TPL has a Quick ratio of 8.70. This is amongst the best in the industry. TPL outperforms 93.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.21% over the past year.
The Earnings Per Share has been growing slightly by 7.56% on average over the past years.
TPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)6.21%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%13.82%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
3.2 Future
TPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.61% yearly.
TPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.11% yearly.
EPS Next Y18.18%
EPS Next 2Y11.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.02%
Revenue Next 2Y14.11%
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
TPL is valuated quite expensively with a Price/Earnings ratio of 42.68.
Compared to the rest of the industry, the Price/Earnings ratio of TPL indicates a slightly more expensive valuation: TPL is more expensive than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, TPL is valued quite expensively.
The Price/Forward Earnings ratio is 35.97, 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 62.38% of the companies in the same industry.
TPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.68 | ||
| Fwd PE | 35.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 70.48% 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 | 101.77 | ||
| EV/EBITDA | 31.81 |
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.
The excellent profitability rating of TPL may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)5.65
EPS Next 2Y11.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPL has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 5.90, TPL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, TPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
31.02% of the earnings are spent on dividend by TPL. This is a low number and sustainable payout ratio.
The dividend of TPL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.02%
EPS Next 2Y11.61%
EPS Next 3YN/A
883.56
-22.2 (-2.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.92%
Inst Owner Change-0.36%
Ins Owners0.85%
Ins Owner Change0.01%
Market Cap20.30B
Revenue(TTM)772.39M
Net Income(TTM)476.39M
Analysts74.29
Price Target957.76 (8.4%)
Short Float %7.02%
Short Ratio11.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend15.11
Dividend Growth(5Y)49.85%
DP31.02%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.15%
Min EPS beat(2)-72.72%
Max EPS beat(2)-9.57%
EPS beat(4)0
Avg EPS beat(4)-38.47%
Min EPS beat(4)-72.72%
Max EPS beat(4)-0.97%
EPS beat(8)2
Avg EPS beat(8)-19.64%
EPS beat(12)3
Avg EPS beat(12)-15.18%
EPS beat(16)4
Avg EPS beat(16)-11.72%
Revenue beat(2)0
Avg Revenue beat(2)-6.36%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)-2.86%
Revenue beat(4)1
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)4.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)4
Avg Revenue beat(12)-1.72%
Revenue beat(16)6
Avg Revenue beat(16)-0.5%
PT rev (1m)-14.32%
PT rev (3m)-14.71%
EPS NQ rev (1m)-71.13%
EPS NQ rev (3m)-71.13%
EPS NY rev (1m)-5.31%
EPS NY rev (3m)-7.61%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.68 | ||
| Fwd PE | 35.97 | ||
| P/S | 26.29 | ||
| P/FCF | 101.77 | ||
| P/OCF | 36.33 | ||
| P/B | 14.84 | ||
| P/tB | 15.21 | ||
| EV/EBITDA | 31.81 |
EPS(TTM)20.7
EY2.34%
EPS(NY)24.56
Fwd EY2.78%
FCF(TTM)8.68
FCFY0.98%
OCF(TTM)24.32
OCFY2.75%
SpS33.61
BVpS59.53
TBVpS58.07
PEG (NY)2.35
PEG (5Y)5.65
Graham Number166.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.24% | ||
| ROE | 34.82% | ||
| ROCE | 40.65% | ||
| ROIC | 31.87% | ||
| ROICexc | 50.53% | ||
| ROICexgc | 53.55% | ||
| OM | 75.8% | ||
| PM (TTM) | 61.68% | ||
| GM | 94.13% | ||
| FCFM | 25.83% |
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%
ROICexgc growth 3Y-19.02%
ROICexgc 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 690.06% | ||
| Cap/Sales | 46.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.65% | ||
| Profit Quality | 41.88% | ||
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 | ||
| Altman-Z | 83.24 |
F-Score6
WACC8.77%
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)6.21%
EPS 3Y19.3%
EPS 5Y7.56%
EPS Q2Q%13.82%
EPS Next Y18.18%
EPS Next 2Y11.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.48%
Revenue growth 3Y16.11%
Revenue growth 5Y7.55%
Sales Q2Q%17.01%
Revenue Next Year17.02%
Revenue Next 2Y14.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.37%
EBIT growth 3Y14.16%
EBIT growth 5Y6.17%
EBIT Next Year34.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.03%
FCF growth 3Y-36.45%
FCF growth 5Y-22.66%
OCF growth 1Y27.19%
OCF growth 3Y22.77%
OCF growth 5Y7.44%
TEXAS PACIFIC LAND CORP / TPL FAQ
What is the fundamental rating for TPL stock?
ChartMill assigns a fundamental rating of 7 / 10 to TPL.
What is the valuation status for TPL stock?
ChartMill assigns a valuation rating of 2 / 10 to TEXAS PACIFIC LAND CORP (TPL). This can be considered as Overvalued.
How profitable is TEXAS PACIFIC LAND CORP (TPL) stock?
TEXAS PACIFIC LAND CORP (TPL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TPL stock?
The Price/Earnings (PE) ratio for TEXAS PACIFIC LAND CORP (TPL) is 42.68 and the Price/Book (PB) ratio is 14.84.
Can you provide the expected EPS growth for TPL stock?
The Earnings per Share (EPS) of TEXAS PACIFIC LAND CORP (TPL) is expected to grow by 18.18% in the next year.