Founded in 1888, Texas Pacific Land Corp (TPL, Financial) is one of the largest landowners in the state of Texas with approximately 900,000 acres of land in West Texas. The company operates in the oil and gas industry, focusing on revenue growth from oil and gas royalties and overall land sales. As of August 17, 2023, the company's stock price stands at $1912.01, with a market cap of $14.68 billion. The stock has seen a gain of 3.24% today and a significant increase of 36.29% over the past four weeks.
GF Score Analysis
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. TPL's GF Score is an impressive 96 out of 100, indicating the highest outperformance potential. This high score suggests that TPL is likely to generate higher returns than those with lower GF Scores. The GF Score takes into consideration Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Rank Analysis
The Financial Strength Rank measures how strong a company's financial situation is. TPL's Financial Strength Rank is a perfect 10 out of 10. This is based on its high interest coverage of 10000.00, a low debt to revenue ratio of 0.00, and a robust Altman Z score of 80.00. These figures indicate that TPL is in a strong financial position with minimal debt burden.
Profitability Rank Analysis
The Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. TPL's Profitability Rank is also a perfect 10 out of 10. This is based on its high Operating Margin of 78.60%, a decent Piotroski F-Score of 6, and a consistent profitability over the past 10 years. These figures suggest that TPL has a strong profitability potential.
Growth Rank Analysis
The Growth Rank measures the growth of a company in terms of its revenue and profitability. TPL's Growth Rank is 10 out of 10, indicating a strong growth potential. This is based on its 5-year revenue growth rate of 26.20% and a 3-year revenue growth rate of 11.00%. These figures suggest that TPL has a strong growth trajectory.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance. TPL's GF Value Rank is 6 out of 10, indicating a fair valuation.
Momentum Rank Analysis
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. TPL's Momentum Rank is 5 out of 10, suggesting a moderate momentum.
Competitor Analysis
When compared to its main competitors in the Oil & Gas industry, TPL stands out with its high GF Score. Chesapeake Energy Corp (CHK, Financial) has a GF Score of 36, Ovintiv Inc (OVV, Financial) has a GF Score of 77, and APA Corp (APA, Financial) has a GF Score of 76. This comparative analysis further highlights TPL's strong performance potential. For more details, please visit our competitors' analysis page.
In conclusion, Texas Pacific Land Corp's high GF Score, strong financial strength, impressive profitability, and robust growth potential make it a compelling investment opportunity in the Oil & Gas industry.
