NYSE:TPL

Stock Analysis Report

Texas Pacific Land Trust

Executive Summary

Texas Pacific Land Trust holds title to tracts of land in the state of Texas.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TPL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.9%

TPL

5.7%

US Oil and Gas

-2.6%

US Market


1 Year Return

-44.0%

TPL

-53.7%

US Oil and Gas

-13.3%

US Market

Return vs Industry: TPL exceeded the US Oil and Gas industry which returned -56.2% over the past year.

Return vs Market: TPL underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

TPLIndustryMarket
7 Day23.9%5.7%-2.6%
30 Day-23.6%-25.5%-15.2%
90 Day-42.0%-48.2%-22.2%
1 Year-42.6%-44.0%-51.8%-53.7%-11.5%-13.3%
3 Year72.4%65.5%-48.7%-53.7%13.2%5.7%
5 Year226.2%211.1%-52.7%-60.0%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPL ($422.07) is trading below our estimate of fair value ($497.89)

Significantly Below Fair Value: TPL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TPL is poor value based on its PE Ratio (10.3x) compared to the Oil and Gas industry average (7x).

PE vs Market: TPL is good value based on its PE Ratio (10.3x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: TPL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TPL is overvalued based on its PB Ratio (6.4x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

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

-8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPL's earnings are forecast to decline over the next 3 years (-8.7% per year).

Earnings vs Market: TPL's earnings are forecast to decline over the next 3 years (-8.7% per year).

High Growth Earnings: TPL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TPL's revenue is expected to decline over the next 3 years (-7.7% per year).

High Growth Revenue: TPL's revenue is forecast to decline over the next 3 years (-7.7% 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


Next Steps

Past Performance

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

49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPL has high quality earnings.

Growing Profit Margin: TPL's current net profit margins (65%) are lower than last year (70%).


Past Earnings Growth Analysis

Earnings Trend: TPL's earnings have grown significantly by 49.1% per year over the past 5 years.

Accelerating Growth: TPL's earnings growth over the past year (52%) exceeds its 5-year average (49.1% per year).

Earnings vs Industry: TPL earnings growth over the past year (52%) exceeded the Oil and Gas industry -11.9%.


Return on Equity

High ROE: TPL's Return on Equity (62.2%) is considered outstanding.


Next Steps

Financial Health

How is Texas Pacific Land Trust's financial position?


Financial Position Analysis

Short Term Liabilities: TPL's short term assets ($366.6M) exceed its short term liabilities ($25.2M).

Long Term Liabilities: TPL's short term assets ($366.6M) exceed its long term liabilities ($60.9M).


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


Next Steps

Dividend

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

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPL's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: TPL's dividend (3.79%) is low compared to the top 25% of dividend payers in the US market (5.7%).


Stability and Growth of Payments

Stable Dividend: TPL's dividends per share have been stable 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 low payout ratio (4.3%), TPL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPL's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Tyler Glover (34yo)

3.42s

Tenure

US$3,789,515

Compensation

Mr. Tyler Glover has been Chief Executive Officer, General Agent and Secretary at Texas Pacific Land Trust since November 05, 2016. Mr. Glover has been Assistant General Agent of Texas Pacific Land Trust s ...


CEO Compensation Analysis

Compensation vs Market: Tyler's total compensation ($USD3.79M) is below average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Tyler's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tyler Glover
General Agent3.42yrsUS$3.79m0.0013% $47.5k
Robert Packer
General Agent5.33yrsUS$3.83m0.0026% $95.1k
Sameer Parasnis
Executive VP & Chief Commercial Officer0.75yrUS$2.10mno data
Chris Steddum
Vice President of Finance & Investor Relationsno datano datano data
Robert Crain
Executive Vice President of Texas Pacific Water Resources LLC2.83yrsno datano data

3.1yrs

Average Tenure

42yo

Average Age

Experienced Management: TPL's management team is considered experienced (3.1 years average tenure).


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 Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Texas Pacific Land Trust
  • Ticker: TPL
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$3.684b
  • Shares outstanding: 7.76m
  • Website: https://www.tpltrust.com

Number of Employees


Location

  • Texas Pacific Land Trust
  • 1700 Pacific Avenue
  • Suite 2770
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPLNYSE (New York Stock Exchange)YesCertificates of Proprietary InterestUSUSDJan 1968
9TPDB (Deutsche Boerse AG)YesCertificates of Proprietary InterestDEEURJan 1968

Biography

Texas Pacific Land Trust holds title to tracts of land in the state of Texas. The company operates through two segments, Land and Resource Management, and Water Service and Operations. The Land and Resource Management segment manages various land and related resources in West Texas. This segment has oil and gas royalty interests; enter into easement contracts covering activities, such as oil and gas pipelines and subsurface wellbore easements; and leases land. As of December 31, 2019, it owned the surface estate in approximately 901,787 acres of land comprising various separate tracts located in 19 counties in the western part of Texas. This segment also owns a 1/128th nonparticipating perpetual oil and gas royalty interest under 84,934 acres of land, as well as a 1/16th nonparticipating perpetual oil and gas royalty interest under 370,737 acres of land in the western part of Texas; and oil and gas royalty interests in approximately 3,074 net royalty acres. The Water Service and Operations segment offers water sourcing, produced-water gathering/treatment, infrastructure development, disposal solutions, water tracking, analytics, and well testing services. Texas Pacific Land Trust was founded in 1888 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:56
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.