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 210 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes TPL very considerable 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.
TPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 34.01%, TPL belongs to the best of the industry, outperforming 96.19% of the companies in the same industry.
TPL's Return On Equity of 38.15% is amongst the best of the industry. TPL outperforms 92.86% of its industry peers.
The Return On Invested Capital of TPL (34.02%) is better than 97.62% 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 23.79%.
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
Looking at the Profit Margin, with a value of 63.24%, TPL belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
TPL's Profit Margin has been stable in the last couple of years.
TPL has a better Operating Margin (76.02%) than 96.67% of its industry peers.
TPL's Operating Margin has been stable in the last couple of years.
TPL's Gross Margin of 93.54% is amongst the best of the industry. TPL outperforms 98.57% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPL 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
TPL has an Altman-Z score of 94.69. This indicates that TPL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 94.69, TPL belongs to the best of the industry, outperforming 98.57% 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 | 94.69 |
ROIC/WACC3.67
WACC9.28%
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.
TPL's Current ratio of 7.68 is amongst the best of the industry. TPL outperforms 94.76% of its industry peers.
A Quick Ratio of 7.68 indicates that TPL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 7.68, TPL belongs to the top of the industry, outperforming 95.24% 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.
Looking at the last year, TPL shows a quite strong growth in Revenue. The Revenue has grown by 10.36% in the last year.
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
The Earnings Per Share is expected to grow by 17.95% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.07% on average over the next years. This is quite good.
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 48.99, the valuation of TPL can be described as expensive.
66.67% of the companies in the same industry are cheaper than TPL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TPL to the average of the S&P500 Index (28.04), we can say TPL is valued expensively.
With a Price/Forward Earnings ratio of 35.69, TPL can be considered very expensive at the moment.
TPL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TPL is more expensive than 65.24% of the companies in the same industry.
TPL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.99 | ||
| Fwd PE | 35.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPL is valued a bit more expensive than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPL is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 356.65 | ||
| EV/EBITDA | 37.22 |
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.
TPL's earnings are expected to grow with 17.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.75
PEG (5Y)6.48
EPS Next 2Y17.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, TPL is not a good candidate for dividend investing.
The stock price of TPL dropped by -26.62% 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 6.49.
Compared to an average S&P500 Dividend Yield of 2.35, 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 paid a dividend for at least 10 years, which is 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
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 2Y17.95%
EPS Next 3YN/A
979.29
+9.85 (+1.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.02%
Inst Owner Change-2.2%
Ins Owners0.85%
Ins Owner Change0.69%
Market Cap22.51B
Analysts80
Price Target1122.98 (14.67%)
Short Float %6.84%
Short Ratio11.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)-15.31%
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)-11.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.99 | ||
| Fwd PE | 35.69 | ||
| P/S | 30.94 | ||
| P/FCF | 356.65 | ||
| P/OCF | 45.01 | ||
| P/B | 18.66 | ||
| P/tB | 19.22 | ||
| EV/EBITDA | 37.22 |
EPS(TTM)19.99
EY2.04%
EPS(NY)27.44
Fwd EY2.8%
FCF(TTM)2.75
FCFY0.28%
OCF(TTM)21.76
OCFY2.22%
SpS31.65
BVpS52.47
TBVpS50.96
PEG (NY)1.75
PEG (5Y)6.48
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 | 94.69 |
F-Score6
WACC9.28%
ROIC/WACC3.67
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%