📊 TPL Key Takeaways
Is Texas Pacific Land Corp (TPL) a Good Investment?
TPL demonstrates exceptional financial health with 77% operating margins, debt-free balance sheet, and strong free cash flow generation ($151.6M, 64% FCF margin). However, net income growth (6.0% YoY) significantly lags revenue growth (13.1% YoY), signaling potential margin compression or operational headwinds in this commodity-dependent royalty business.
Texas Pacific Land Corp Key Strengths (TPL)
- Exceptional profitability margins (77% operating margin, 60.3% net margin) with industry-leading efficiency
- Fortress balance sheet: zero debt, $247.6M cash, 4.23x current ratio, minimal liabilities ($195.5M total)
- Superior cash conversion: $151.6M free cash flow on $236.8M revenue with low capital intensity ($10.4M CapEx)
- Positive revenue growth of 13.1% YoY demonstrating business resilience
- Strong liquidity position supporting operational flexibility and shareholder returns
TPL Stock Risks: Texas Pacific Land Corp Investment Risks
- Decelerating net income growth (6.0% YoY) diverging negatively from revenue growth (13.1% YoY) suggests margin pressure
- Moderate capital efficiency: ROE of 9.2% and ROA of 8.2% are low relative to exceptional operating margins, indicating potential capital deployment inefficiency
- Commodity price exposure: oil royalty business inherently cyclical and vulnerable to energy price volatility
- Elevated insider Form 4 activity (71 filings in 90 days) may indicate distribution-focused rather than growth-focused capital allocation
- Sector concentration risk in oil/energy royalties with limited diversification
Key Metrics to Watch
- Net income growth rate relative to revenue growth - watch for continued divergence indicating margin compression
- Operating margin sustainability - validate the 77% level can be maintained
- Return on Equity and Return on Assets trends - assess capital deployment efficiency improvements
- Free cash flow generation consistency - critical metric for evaluating shareholder value creation
- Oil price correlations and commodity cycle positioning - assess forward earnings visibility
Texas Pacific Land Corp (TPL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 64.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.23x current ratio provides a solid financial cushion.
TPL Profit Margin, ROE & Profitability Analysis
TPL vs Energy Sector: How Texas Pacific Land Corp Compares
How Texas Pacific Land Corp compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Texas Pacific Land Corp Stock Overvalued? TPL Valuation Analysis 2026
Based on fundamental analysis, Texas Pacific Land Corp appears fundamentally strong relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Texas Pacific Land Corp Balance Sheet: TPL Debt, Cash & Liquidity
TPL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Texas Pacific Land Corp's revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.86 reflects profitable operations.
TPL Revenue Growth, EPS Growth & YoY Performance
TPL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $196.0M | $120.7M | $1.75 |
| Q3 2025 | $173.6M | $106.6M | $4.63 |
| Q2 2025 | $172.3M | $114.4M | $4.98 |
| Q1 2025 | $174.1M | $114.4M | $4.97 |
| Q3 2024 | $158.0M | $86.6M | $4.58 |
| Q2 2024 | $160.6M | $86.6M | $4.35 |
| Q1 2024 | $146.4M | $86.6M | $3.75 |
| Q3 2023 | $158.0M | $86.6M | $13.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Texas Pacific Land Corp Dividends, Buybacks & Capital Allocation
TPL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Texas Pacific Land Corp (CIK: 0001811074)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TPL
What is the AI rating for TPL?
Texas Pacific Land Corp (TPL) has an AI grade of A with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TPL's key strengths?
Claude: Exceptional profitability margins (77% operating margin, 60.3% net margin) with industry-leading efficiency. Fortress balance sheet: zero debt, $247.6M cash, 4.23x current ratio, minimal liabilities ($195.5M total).
What are the risks of investing in TPL?
Claude: Decelerating net income growth (6.0% YoY) diverging negatively from revenue growth (13.1% YoY) suggests margin pressure. Moderate capital efficiency: ROE of 9.2% and ROA of 8.2% are low relative to exceptional operating margins, indicating potential capital deployment inefficiency.
What is TPL's revenue and growth?
Texas Pacific Land Corp reported revenue of $236.8M.
Does TPL pay dividends?
Texas Pacific Land Corp pays dividends, with $41.8M distributed to shareholders in the trailing twelve months.
Where can I find TPL SEC filings?
Official SEC filings for Texas Pacific Land Corp (CIK: 0001811074) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TPL's EPS?
Texas Pacific Land Corp has a diluted EPS of $2.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TPL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Texas Pacific Land Corp has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TPL stock overvalued or undervalued?
Valuation metrics for TPL: ROE of 9.2% (sector avg: 14%), net margin of 60.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is TPL's AI grade for 2026?
Our dual AI analysis gives Texas Pacific Land Corp a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TPL's free cash flow?
Texas Pacific Land Corp's operating cash flow is $162.0M, with capital expenditures of $10.4M. FCF margin is 64.0%.
How does TPL compare to other Energy stocks?
Vs Energy sector averages: Net margin 60.3% (avg: 12%), ROE 9.2% (avg: 14%), current ratio 4.23 (avg: 1.3).