Texas Pacific Land Corporation (TPL) Fundamental Checkup
Texas Pacific Land Corporation fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 5, 2026.
By TGMCharts Research · Data as of · Updated
Texas Pacific Land Corporation gets a balanced fundamental read when revenue growth of 22.25%, EPS growth of 22.57%, free-cash-flow growth of 25.93%, net margin of 60.32%, and ROIC of 30.12% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 4.55x and debt-to-equity is 0.01x, so the balance-sheet read is part of the final view rather than a footnote.
- Texas Pacific Land Corporation has market cap of $24.53B and closed at $356 on August 5, 2026.
- Five-year revenue CAGR is 22.25% and five-year EPS CAGR is 22.57%.
- Five-year free-cash-flow CAGR is 25.93%.
- Net margin is 60.32% and ROIC is 30.12%.
- Current ratio is 4.55x and debt-to-equity is 0.01x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating Growth Cash and Balance Sheet Coherence
Analyzing Texas Pacific Land Corporation requires evaluating whether top-line expansion, cash conversion, profitability metrics, and financial flexibility align into a single, cohesive fundamental thesis. With the stock closing at $356 on August 5, 2026, our assessment begins by analyzing the underlying business performance before contextualizing these results against the current market price.
This evaluation starts by comparing the five-year revenue CAGR of 22.25% against the five-year EPS CAGR of 22.57%, and subsequently verifying this expansion against the five-year free cash flow CAGR of 25.93%. A robust fundamental analysis must look beyond a single growth trajectory to confirm structural strength across the entire financial model.
Current compounder snapshot · TPL
Live supporting context; not part of the article's frozen 2026-08-05 evidence snapshot.
- Score
- 37/100
- 10Y CAGR
- 26%
- Median YoY
- 19.2%
- YoY volatility
- σ 64.7pp· choppy
- Quarters ≥ 20%
- 19 of 40
- Negative quarters
- 9
- Valuation vs own 10Y history
- P/S 27.4x · 10Y median 27.6x · 50th percentile · as of Aug 6, 2026
How this score is computed
- Quarters at or above 20%: 19 of 40 → 19 of 40 pts
- Steadiness (typical swing 64.7pp) → 0 of 25 pts
- Pace (median 19.2% YoY) → 5.6 of 20 pts
- Latest quarter (31.2% YoY) → 12.1 of 15 pts
- Score: 37 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Energy Sector Context and Core Financial Metrics
As an operating entity within the Energy sector, Texas Pacific Land Corporation is evaluated here based on concrete historical data regarding growth, margin profiles, capital reinvestment, and capital structure. This baseline snapshot integrates the firm's valuation, expansion rates, operating quality, and leverage metrics to establish a comprehensive framework before analyzing individual financial statements.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
TPL revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 22.25%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 22.25% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Assessing Top Line Expansion Against Per Share Earnings
Growth conversion analysis measures how effectively top-line gains are translated into bottom-line shareholder value. The historical revenue growth rate of 22.25% establishes the baseline expansion rate of the business, while the corresponding EPS CAGR of 22.57% indicates the net translation to per-share profitability. When earnings growth matches or exceeds revenue expansion, it is necessary to examine the underlying margin structures and cash generation to ensure this trend is sustainable.
TPL EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 22.57%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 22.57% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Net Income Quality Through Cash Generation
Free cash flow serves as the primary validation mechanism for accrual-based net income trends. With a five-year free cash flow CAGR of 25.93%, the cash generation profile closely mirrors the reported earnings trajectory. If cash flow trends were to diverge or lag behind earnings growth, it would suggest a lower-quality earnings profile and necessitate a more conservative outlook on the business.
TPL free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 25.93%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 25.93% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Analyzing Operating Efficiency and Capital Reinvestment Returns
The sustainability of historical growth is heavily dependent on maintaining high operational efficiency and strong returns on capital. Currently, the company delivers a net margin of 60.32% alongside a return on invested capital (ROIC) of 30.12%. The net margin reflects the high percentage of revenue retained as profit, while the ROIC demonstrates that capital reinvested back into operations continues to generate attractive returns.
TPL net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 60.32%. The bars below are annual fiscal years.
Net margin of 60.32% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
TPL ROIC Chart
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 30.12%.
ROIC of 30.12% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity and Capital Structure as Operational Guardrails
Balance sheet flexibility provides the necessary cushion to sustain operations through varying economic cycles. The company maintains a current ratio of 4.55x and a debt-to-equity ratio of 0.01x. These metrics are critical because even highly profitable growth stories can face operational disruption if short-term liquidity dries up or leverage increases excessively.
TPL debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.01x.
Debt-to-equity of 0.01x and current ratio of 4.55x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Evaluating Current Multiples and Market Expectations
Valuation metrics provide context regarding the expectations already priced into the stock by the market. Shares are currently trading at a price-to-earnings multiple of 48.71x, which corresponds to an earnings yield of 2.05%. This valuation framework highlights the high level of operational execution and growth the market expects the company to maintain going forward.
TPL Price Chart
Latest close: $356 as of August 5, 2026.
The close at $356 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing Structural Strengths Against Potential Points of Failure
The optimistic scenario relies on revenue, earnings, cash flow, high margins, and excellent ROIC continuing to reinforce each other while maintaining a clean balance sheet. Conversely, the primary risk is that one of these operational links degrades, leaving the company exposed to multiple contraction if performance falls short of the historical standard. This balance of factors forms the core of our fundamental assessment.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 22.25% and five-year EPS CAGR of 22.57% support the business case.
- Net margin of 60.32% and ROIC of 30.12% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 25.93% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.01x and current ratio of 4.55x are the balance-sheet checks that can change the view.
Monitoring Key Variables for Future Analytical Updates
This fundamental assessment should be updated if subsequent financial filings reveal a material shift in revenue growth, EPS trends, cash conversion, ROIC, or leverage. The analysis presented here serves as objective research context based on historical results and does not constitute personalized financial advice or investment recommendations.
FAQ
What is the fundamental read on TPL?
Texas Pacific Land Corporation is judged through revenue growth of 22.25%, EPS growth of 22.57%, free-cash-flow growth of 25.93%, net margin of 60.32%, and ROIC of 30.12%.
Which TPL fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this TPL checkup refresh?
Its figures are as of August 5, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 22.25%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 22.57%.
- ROIC or balance-sheet flexibility weakening from ROIC of 30.12% and debt-to-equity of 0.01x.
The bottom line
Texas Pacific Land Corporation fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Is Texas Pacific Land Corporation (TPL) Fairly Valued?Valuation on Texas Pacific Land Corporation — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-08-05 · period 2026-06-30 · SEC EDGAR source
- “Market Conditions Average West Texas Intermediate ("WTI") oil prices for the six months ended June 30, 2026 increased by approximately 24% compared to average WTI oil prices during the same period last year.”
- “As a result, global oil prices this year increased to over $90 per barrel from March through early-June with continued volatility in July.”
- “Average Henry Hub natural gas prices during 2026 increased approximately 4% compared to average prior year period natural gas prices.”
- “We recognized land sales revenue of $20.9 million at closing and recorded a financing receivable for the deferred consideration.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.