Texas Pacific Land TPL
Texas Pacific Land Corporation owns and manages a vast expanse of land in the Permian Basin of Texas, generating revenue primarily through oil and gas production royalties, as well as water sales and services for energy operators. Texas Pacific Land shows solid financial health (ND/EBITDA -0.31, operating margin 78.18%) and robust growth (revenue +31.2%), but its valuation is extremely demanding (P/E 43.5, EV/EBITDA 31.41) and free cash flow conversion is negative (-4.43), which weighs on its attractiveness.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Texas Pacific Land Corporation owns and manages a vast expanse of land in the Permian Basin of Texas, generating revenue primarily through oil and gas production royalties, as well as water sales and services for energy operators. Texas Pacific Land shows solid financial health (ND/EBITDA -0.31, operating margin 78.18%) and robust growth (revenue +31.2%), but its valuation is extremely demanding (P/E 43.5, EV/EBITDA 31.41) and free cash flow conversion is negative (-4.43), which weighs on its attractiveness.
Score by category
| Category | Score |
|---|---|
| Financial health | 9.0 |
| Quality / Moat | 7.7 |
| Valuation | 1.4 |
| Growth | 8.8 |
| Dividend | 4.7 |
| Momentum | 5.0 |
| Risk & Context | 8.0 |
OVERALL SCORE: 6.1/10
Context and risks
No material news or specific regulatory, geopolitical, or business model risks that are not already reflected in the quantitative scores. US country risk is moderate and standard.
News considered in the analysis
- Q2 Earnings Highs And Lows: Texas Pacific Land (NYSE:TPL) Vs The Rest Of The U.S. Shale E&P Stocks — Artículo comparativo genérico sin información nueva sobre TPL.
- Is Texas Pacific Land Stock Underperforming the Nasdaq? — Comparativa de rendimiento bursátil sin información fundamental nueva.
- 2 Mid-Cap Stocks with Exciting Potential and 1 We Avoid — Listículo sin información específica accionable.
- 2 Energy Stocks with Impressive Fundamentals and 1 We Find Risky — Opinión genérica sin datos concretos nuevos.
- 3 Oil Stocks Retail Investors Are Screening As Crude Price Risk Returns — Menciona el riesgo del crudo, pero sin información específica sobre TPL.
Verdict: Hold; business quality is exceptional, but the price already discounts perfect growth and free cash flow generation is concerning.
Main risk: The extreme valuation (P/E 43.5, EV/EBITDA 31.41) combined with negative free cash flow conversion (-4.43) leaves little room for error if royalty growth decelerates.
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