TPLTexas Pacific Land Corporation
Is the business good?
The checks split: earnings fully cash-backed (1.1×) and elite returns on assets, but margins compressing.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 33% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TPL?
Texas Pacific Land Corporation earns 37% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 28 points above what the capital costs: growth creates value
- Operating margin
- 75%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 1.13×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.01%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 72% |
| FY2021 | 80% |
| FY2022 | 84% |
| FY2023 | 77% |
| FY2024 | 76% |
| FY2025 | 74% |
Details›
- Operating margin12 months to Q2 2026
- 75%
- Net margin12 months to Q2 2026
- 60%
- Free cash flow margin
- 51%
- Revenue, trailing twelve months
- $898M
- Free cash flow, trailing twelve months
- $462M
- Net income, trailing twelve months
- $541M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 37%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas E&P
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