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Market Cap

US$12.3b

Last Updated

2021/04/18 23:11 UTC

Data Sources

Company Financials +

Executive Summary

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. More Details

Rewards

Earnings are forecast to grow 31.02% per year

Risk Analysis

TPL passed our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Texas Pacific Land's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TPL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TPL's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

TPL

0.4%

US Oil and Gas

1.3%

US Market


1 Year Return

208.2%

TPL

43.9%

US Oil and Gas

53.8%

US Market

Return vs Industry: TPL exceeded the US Oil and Gas industry which returned 43.9% over the past year.

Return vs Market: TPL exceeded the US Market which returned 53.8% over the past year.


Shareholder returns

TPLIndustryMarket
7 Day-1.1%0.4%1.3%
30 Day-5.7%-0.3%5.1%
90 Day87.9%13.9%8.9%
1 Year213.5%208.2%53.8%43.9%56.6%53.8%
3 Year202.6%187.8%-18.0%-29.5%64.4%53.6%
5 Year1,031.6%963.3%-4.5%-23.8%120.4%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Texas Pacific Land's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Texas Pacific Land undervalued compared to its fair value and its price relative to the market?

69.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TPL ($1580) is trading above our estimate of fair value ($1265.1)

Significantly Below Fair Value: TPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TPL is poor value based on its PE Ratio (69.6x) compared to the US Oil and Gas industry average (13.4x).

PE vs Market: TPL is poor value based on its PE Ratio (69.6x) compared to the US market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: TPL is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: TPL is overvalued based on its PB Ratio (25.3x) compared to the US Oil and Gas industry average (1.4x).


Future Growth

How is Texas Pacific Land forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPL's forecast earnings growth (31% per year) is above the savings rate (2%).

Earnings vs Market: TPL's earnings (31% per year) are forecast to grow faster than the US market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TPL's revenue (25.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: TPL's revenue (25.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TPL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Texas Pacific Land performed over the past 5 years?

35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPL has high quality earnings.

Growing Profit Margin: TPL's current net profit margins (58.2%) are lower than last year (65%).


Past Earnings Growth Analysis

Earnings Trend: TPL's earnings have grown significantly by 35.5% per year over the past 5 years.

Accelerating Growth: TPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TPL had negative earnings growth (-44.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-44.6%).


Return on Equity

High ROE: TPL's Return on Equity (36.3%) is considered high.


Financial Health

How is Texas Pacific Land's financial position?


Financial Position Analysis

Short Term Liabilities: TPL's short term assets ($331.2M) exceed its short term liabilities ($19.5M).

Long Term Liabilities: TPL's short term assets ($331.2M) exceed its long term liabilities ($66.9M).


Debt to Equity History and Analysis

Debt Level: TPL is debt free.

Reducing Debt: TPL has not had any debt for past 5 years.

Debt Coverage: TPL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TPL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Texas Pacific Land current dividend yield, its reliability and sustainability?

0.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPL's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: TPL's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: TPL's dividend payments have been volatile in the past 10 years.

Growing Dividend: TPL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.1%), TPL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPL's dividends in 3 years are forecast to be well covered by earnings (18.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Tyler Glover (35 yo)

4.42yrs

Tenure

US$3,006,666

Compensation

Mr. Tyler Glover serves as President and Chief Executive Officer at Texas Pacific Land Corporation. He served as Chief Executive Officer, General Agent and Secretary at Texas Pacific Land Corporation since...


CEO Compensation Analysis

Compensation vs Market: Tyler's total compensation ($USD3.01M) is below average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Tyler's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TPL's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: TPL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TPL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Texas Pacific Land Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Texas Pacific Land Corporation
  • Ticker: TPL
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$12.255b
  • Shares outstanding: 7.76m
  • Website: https://www.texaspacific.com

Number of Employees


Location

  • Texas Pacific Land Corporation
  • 1700 Pacific Avenue
  • Suite 2900
  • Dallas
  • Texas
  • 75201
  • United States

Listings


Biography

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company’s Land and Resource Management segment manages approximately 880,000 ac...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 23:11
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.