Texas Pacific Land Corp (TPL, Financial) has recently witnessed a notable uptick in its stock performance. With a market capitalization of $14.4 billion, the company's stock price has climbed to $626.09, marking a 3.99% gain over the past week. Over the last three months, the stock has seen an impressive 21.75% increase. According to the GF Value, which is currently at $673.84, TPL is considered Fairly Valued. This is a significant shift from three months ago when the stock was deemed Modestly Undervalued with a past GF Value of $1,896.4.
Introduction to Texas Pacific Land Corp
Operating within the Oil & Gas industry, Texas Pacific Land Corp is primarily involved in land sales and leases, retaining oil and gas royalties, and managing its land holdings. The company operates through two segments: Land and Resource Management, which manages oil and gas royalty interests and surface acres of land, and Water Service and Operations, which offers full-service water solutions to operators, including produced-water treatment, infrastructure development, and disposal solutions. The majority of TPL's revenue is generated from the Land and Resource Management segment.
Assessing TPL's Profitability
With a Profitability Rank of 9/10, TPL stands out for its high profitability within its sector. The company's Operating Margin is an impressive 76.96%, outperforming 98.25% of 974 companies in the Oil & Gas industry. Its Return on Equity (ROE) is 45.10%, surpassing 92.41% of 1,015 companies, while the Return on Assets (ROA) at 40.01% is better than 97.89% of 1,089 companies. Furthermore, TPL's Return on Invested Capital (ROIC) is an extraordinary 107.47%, exceeding 99.26% of 1,078 companies. TPL has maintained profitability for the past 10 years, a feat better than 99.89% of 951 companies in the industry.
Growth Prospects of TPL
The company's Growth Rank stands at a perfect 10/10, indicating exceptional growth prospects. TPL's 3-Year Revenue Growth Rate per Share is 28.20%, higher than 72.93% of 857 companies. Its 5-Year Revenue Growth Rate per Share is 15.80%, outperforming 76.35% of 795 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 12.78%, better than 84.37% of 384 companies. Additionally, the 3-Year EPS without NRI Growth Rate is 32.50%, surpassing 64.35% of 634 companies, and the 5-Year EPS without NRI Growth Rate is 14.70%, higher than 58.03% of 417 companies.
Major Shareholders in TPL
Significant investments by major holders underscore confidence in TPL's performance. Murray Stahl (Trades, Portfolio) holds the largest share with 3,815,925 shares, representing 16.58% of the company. Jim Simons (Trades, Portfolio) and David Rolfe (Trades, Portfolio) each hold a 0.06% share percentage with 14,400 and 14,130 shares, respectively. These investments by prominent investors reflect a strong belief in the company's value and future potential.
Competitive Landscape
When compared to its competitors, TPL holds a strong market position. Ovintiv Inc (OVV, Financial) has a market cap slightly higher at $14.9 billion, while Chesapeake Energy Corp (CHK, Financial) is valued at $11.67 billion. Marathon Oil Corp (MRO, Financial) stands at a market cap of $17.06 billion. TPL's recent performance and growth prospects position it competitively within this close-knit group of industry peers.
Conclusion
In summary, Texas Pacific Land Corp's recent stock performance and valuation status reflect a company on the rise. The stock's 22% surge over the past three months is backed by strong fundamentals, including a high Profitability Rank and robust growth metrics. The significant stakes held by major investors like Murray Stahl (Trades, Portfolio), Jim Simons (Trades, Portfolio), and David Rolfe (Trades, Portfolio) further validate the company's market position. When juxtaposed with its competitors, TPL's market cap and growth trajectory suggest a company well-positioned for continued success in the Oil & Gas industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
