Texas Pacific Land Corp (TPL) stock analysis

P/E below its 5-year median

Texas Pacific Land's P/E of 33.1 is below its own 5-year median of 41.8.

P/E above the industry

Texas Pacific Land's P/E of 33.1 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA below its 5-year median

Texas Pacific Land's EV/EBITDA of 23.6 is below its 5-year median of 30.8.

P/B above the industry

Texas Pacific Land's price-to-book of 10.77 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $281.42 is above our fair value estimate of $237.32.

Margin of safety under 20%

The price is 18.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 23.3% over the last twelve months, against a 5-year average of 22.3% a year.

Growing faster than the industry

Revenue grew 25.3% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 37.1% over the last twelve months and averaged 46.7% over five years.

Return on capital over 10%

Return on invested capital was 51.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Texas Pacific Land's return on equity of 37.1% is above the Miscellaneous Investing median of 3.1%.

Earnings grew over 5 years

Net income grew 22.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 60.7% over the last twelve months, against a 5-year average of 63.1%.

Net margin above the industry

Texas Pacific Land's net margin of 60.7% is above the Miscellaneous Investing median of 10.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 201.1 times.

Short-term assets cover short-term debts

Current assets are 5.41 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 65.96; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Texas Pacific Land paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Texas Pacific Land yields 0.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 27.5% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.