# Texas Pacific Land (TPL.US)

Canonical: https://gigainvestors.com/s/TPL

Analysis as of: 2026-10-01T19:03:56.889Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed. Published buy qualification: no.

Share price: $346.52 per share; close as of 2026-10-15.

Estimated value: low $6.67 per share, central $7.33 per share, high $8.21 per share. Buy at or below the central value $7.33 per share. Valuation as of 2026-10-01T19:03:56.889Z; scenarios are not confidence intervals.

Expected annual return: 3.1% at the stated quote. About 3.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.3% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.06×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.87×

- FY2019: 0.81×

- FY2020: 0.72×

- FY2021: 0.80×

- FY2022: 0.84×

- FY2023: 0.77×

- FY2024: 0.76×

- FY2025: 0.74×

### moat: pass

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 55.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.4%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: >100%

- FY2020: 84.1%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: 55.3%

- FY2025: 34.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.57×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $2.1B

- Working capital / revenue, annual change: 0.8 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.98×

- FY2023: 0.91×

- FY2024: 0.12×

- FY2025: 0.06×

### management: pass

- $1 retained earnings test: 2018 to 2025 (7 years)

- buybacks leaned toward cheaper years (informational)

- Ordinary dilution, 5-year annual growth: 54.8%

- Market cap gain: $16B

- Cumulative retained earnings: $1.4B

- Diluted shares, 5-year annual growth: 54.8%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -24.6%

- Per-share value change: -$20.36

- Per-share value, starting three-year median: $26.93

- Per-share value, ending three-year median: $6.57

- Buybacks concentrated in cheaper years (correlation): 0.68

- Average buyback yield: 0.2%

- Buyback history: 7 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 55.3%

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 1.15×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.13×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -4.0%

- FY2020: -5.4%

- FY2021: 0.6%

- FY2022: -0.1%

- FY2023: -1.1%

- FY2024: -2.9%

- FY2025: -4.0%

## Holders

## Price story

Down 61% since Nov 2022 · "Texas Pacific Land (NYSE:TPL) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings" (finance.yahoo.com, Aug 2026) · sales +13.1%

Story as of 2026-10-03T17:10:00Z; price observation 2026-10-02.

Price needs cash profits to grow 58.5% a year for ten years

- 2026-08-05: Texas Pacific Land (NYSE:TPL) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/texas-pacific-land-nyse-tpl-225308689.html))

### Sales · FY2024–2025

sales +13.1%; source https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm; observed 2026-02-18.

- FY2018: $300M 

- FY2019: $490M 

- FY2020: $303M 

- FY2021: $451M 

- FY2022: $667M 

- FY2023: $632M 

- FY2024: $706M 

- FY2025: $798M 

### Gross margin · FY2025

gross margin 85.5%; source https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm; observed 2026-02-18.

- FY2022: 95.1% 

- FY2023: 92.3% 

- FY2024: 89.9% 

- FY2025: 85.5% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Annual sales are USD 798.2 million.

- Source: https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm (filed 2026-02-18); FY2025: revenue 798190000; grossProfit 682129000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); TPL.US: 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 operators in the Permian Basin. This segment also holds produced water royalties. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 33,000 additional net royalty acres, total of approximately 224,000 NRA located in the Permian Basin. The company was founded in 1888 and is headquartered in Dallas, Texas.

### Why customers stay

Margins ranged from 85.5% to 92.3% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: grossProfit / revenue = 92.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: grossProfit / revenue = 89.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm (filed 2026-02-18); FY2025: grossProfit / revenue = 85.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 8-year return on capital observations [[2019,1.494403867481362],[2020,0.8414341919841919],[2021,1.1948269659498982],[2022,1.6537879037299164],[2023,1.1859442728240968],[2024,0.5531746014741322],[2025,0.34645807206155665]]; median 1.1859442728240968. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 23.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2016: growth capex 0; upkeep 977000; owner earnings 41116097. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2017: growth capex 2516075.457250241; upkeep 16230924.542749759; owner earnings 69817075.45725024. Growth capex / owner earnings = 0.036038110172501595.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2018: growth capex 8492000; upkeep 39386000; owner earnings 209736000. Growth capex / owner earnings = 0.04048899568981958.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2019: growth capex 27121800.445801735; upkeep 10104199.554198265; owner earnings 328635800.44580173. Growth capex / owner earnings = 0.0825284415423104.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2020: growth capex 0; upkeep 22032000; owner earnings 182807000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 0; upkeep 15548000; owner earnings 270661000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 5498000; upkeep 15376000; owner earnings 437930000. Growth capex / owner earnings = 0.012554517845317744.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 0; upkeep 15028000; owner earnings 395031000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 4534000; upkeep 25162000; owner earnings 441462000. Growth capex / owner earnings = 0.010270419651068495.

- Source: https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm (filed 2026-02-18); FY2025: growth capex 0; upkeep 59531000; owner earnings 469247000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,2507183],[2017,10681000],[2018,31652000],[2019,46546000],[2020,201660000],[2021,85264000],[2022,247281000],[2023,99972000],[2024,347309000],[2025,147798000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm (filed 2026-02-18); FY2025: cash repurchases 23175000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); TPL.US SharesStats.PercentInsiders = 0.39699999999999996 percentage points; cache date 2026-10-02.

### What could break it

"The impact of government regulation on TPWR could adversely affect our business." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm (filed 2026-02-18); The impact of government regulation on TPWR could adversely affect our business.

### What the price says

The price assumes cash profits grow 58.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate 0.8661505428695169. Price 336.46; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-01.

## Monthly share-price history (USD per share)

- 2016-10: $88.43 per share

- 2016-11: $99.10 per share

- 2016-12: $98.92 per share

- 2017-01: $105.84 per share

- 2017-02: $99.50 per share

- 2017-03: $93.25 per share

- 2017-04: $102.37 per share

- 2017-05: $94.45 per share

- 2017-06: $97.93 per share

- 2017-07: $110.67 per share

- 2017-08: $134.67 per share

- 2017-09: $134.70 per share

- 2017-10: $135.74 per share

- 2017-11: $135.92 per share

- 2017-12: $148.88 per share

- 2018-01: $179.02 per share

- 2018-02: $179.69 per share

- 2018-03: $168.47 per share

- 2018-04: $181.63 per share

- 2018-05: $235.57 per share

- 2018-06: $231.78 per share

- 2018-07: $246.69 per share

- 2018-08: $278.20 per share

- 2018-09: $287.52 per share

- 2018-10: $253.37 per share

- 2018-11: $193.06 per share

- 2018-12: $180.54 per share

- 2019-01: $231.80 per share

- 2019-02: $247.87 per share

- 2019-03: $257.88 per share

- 2019-04: $267.45 per share

- 2019-05: $245.67 per share

- 2019-06: $262.33 per share

- 2019-07: $265.73 per share

- 2019-08: $218.40 per share

- 2019-09: $216.52 per share

- 2019-10: $189.68 per share

- 2019-11: $224.99 per share

- 2019-12: $260.41 per share

- 2020-01: $251.90 per share

- 2020-02: $231.93 per share

- 2020-03: $126.67 per share

- 2020-04: $189.88 per share

- 2020-05: $195.46 per share

- 2020-06: $198.23 per share

- 2020-07: $177.66 per share

- 2020-08: $175.57 per share

- 2020-09: $150.52 per share

- 2020-10: $150.14 per share

- 2020-11: $203.31 per share

- 2020-12: $242.33 per share

- 2021-01: $277.41 per share

- 2021-02: $368.01 per share

- 2021-03: $529.81 per share

- 2021-04: $513.38 per share

- 2021-05: $484.37 per share

- 2021-06: $533.25 per share

- 2021-07: $497.52 per share

- 2021-08: $453.25 per share

- 2021-09: $403.12 per share

- 2021-10: $424.56 per share

- 2021-11: $402.92 per share

- 2021-12: $416.29 per share

- 2022-01: $358.33 per share

- 2022-02: $396.24 per share

- 2022-03: $450.70 per share

- 2022-04: $455.53 per share

- 2022-05: $522.00 per share

- 2022-06: $496.01 per share

- 2022-07: $611.28 per share

- 2022-08: $613.49 per share

- 2022-09: $592.41 per share

- 2022-10: $767.96 per share

- 2022-11: $864.18 per share

- 2022-12: $781.41 per share

- 2023-01: $665.28 per share

- 2023-02: $593.40 per share

- 2023-03: $567.01 per share

- 2023-04: $492.55 per share

- 2023-05: $434.57 per share

- 2023-06: $438.83 per share

- 2023-07: $502.10 per share

- 2023-08: $628.25 per share

- 2023-09: $607.85 per share

- 2023-10: $615.32 per share

- 2023-11: $557.32 per share

- 2023-12: $524.15 per share

- 2024-01: $487.11 per share

- 2024-02: $525.14 per share

- 2024-03: $192.84 per share

- 2024-04: $192.10 per share

- 2024-05: $204.77 per share

- 2024-06: $244.76 per share

- 2024-07: $281.63 per share

- 2024-08: $289.63 per share

- 2024-09: $294.91 per share

- 2024-10: $388.67 per share

- 2024-11: $533.36 per share

- 2024-12: $368.65 per share

- 2025-01: $432.39 per share

- 2025-02: $475.98 per share

- 2025-03: $441.66 per share

- 2025-04: $429.62 per share

- 2025-05: $371.34 per share

- 2025-06: $352.13 per share

- 2025-07: $322.71 per share

- 2025-08: $311.16 per share

- 2025-09: $311.21 per share

- 2025-10: $314.46 per share

- 2025-11: $288.10 per share

- 2025-12: $287.22 per share

- 2026-01: $348.36 per share

- 2026-02: $524.29 per share

- 2026-03: $474.56 per share

- 2026-04: $443.67 per share

- 2026-05: $393.00 per share

- 2026-06: $437.64 per share

- 2026-07: $402.58 per share

- 2026-08: $374.34 per share

- 2026-09: $325.83 per share

## Annual estimated value (USD per share)

- FY2022: low $148.75 per share, central $166.30 per share, high $189.67 per share

- FY2023: low $60.66 per share, central $67.60 per share, high $76.84 per share

- FY2024: low $13.77 per share, central $14.96 per share, high $16.54 per share

- FY2025: low $6.66 per share, central $7.32 per share, high $8.20 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1811074/000181107426000018/tpl-20251231.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.