Texas Pacific Land Corporation

Valuation Analysis

About the Company

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in Permian Basin. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to oper

Texas Pacific Land Corporation Stock at a Glance

Texas Pacific Land Corporation (TPL) is currently trading at $378.91 with a market capitalization of $26.1B. The trailing P/E ratio stands at 52.05x, with a forward P/E of 5.18x. The 52-week range spans from $269.23 to $547.20; the current price is 30.8% below the yearly high. Year-over-year revenue growth stands at +20.8%. The net profit margin stands at 60.02%.

💰 Dividend

Texas Pacific Land Corporation pays an annual dividend of $2.40 per share, representing a yield of 0.63%. The payout ratio stands at 30.18%.

📊 Analyst Rating

2 analysts rate Texas Pacific Land Corporation (TPL) on consensus: Hold. The average price target is $445.00, implying +17.44% from the current price. Analyst price targets range from $251.00 to $639.00.

Texas Pacific Land Corporation: The Investment Case in Detail

Texas Pacific Land Corporation (TPL) operates in the Energy — specifically Oil & Gas E&P — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 20.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 93.24%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 36.47% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 7.33, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 37.53x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 5.18x is meaningfully below the trailing 52.05x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (9.5%).

Trading Data

💵 Dividend Info

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