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TPL Stock Analysis: Hold (Score 44.6/100) | Blank Capital Research | Blank Capital Research
TPL
Texas Pacific Land Corp
$410.79
+32.82 (+8.68%)
Score44.6
Data as of Apr 6, 2026
TPL
Texas Pacific Land Corp
FinancialsTrading
$410.79
+32.82 (+8.68%)
Open $387.26High $417.95Low $386.89Prev $377.97Vol ---52W: $280.95 – $1,432.18
Catalyst IntelligenceBullish Factor
Context:Accumulation identified following news: "Jim Cramer Highlights Texas Pacific Land as the Ninth Best Performing S&P 500 Stock in Q1". This headline is the primary catalyst for the 8.7% move.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#1,539
Percentile
Top 35%
Business quality
95th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 94.7GRADE A+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
31.9%
Sector: 8.5%
Dividend Analysis audit
GROWTH
0.69%
Trailing Yield
$0.69
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
46%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, Texas Pacific Land Corp (TPL) receives a "Hold" rating with a composite score of 44.6/100, ranked #1539 out of 4446 stocks. Key factor scores: Quality 95/100, Value 47/100, Momentum 12/100. This is quantitative analysis only — not investment advice.
Texas Pacific Land Corp (TPL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Texas Pacific Land Corp Do?
Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company's Land and Resource Management segment manages approximately 880,000 acres of land. This segment also holds own 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 4,000 additional net royalty acres located in the western part of Texas. In addition, this segment engages in easements and commercial leases activities, such as oil, gas and related hydrocarbons, power line and utility easements, and subsurface wellbore easements. Further, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche. Its Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water gathering/treatment, infrastructure development, disposal solutions, water tracking, analytics, and well testing services to operators in the Permian Basin. This segment also holds royalties for water sourced from its land. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas. Texas Pacific Land Corp (TPL) is classified as a large-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Tyler Glover and employs approximately 100 people. With a market capitalization of $30.3B, TPL is one of the prominent companies in the Financials sector.
Texas Pacific Land Corp (TPL) Stock Rating — Hold (April 2026)
As of April 2026, Texas Pacific Land Corp receives a Hold rating with a composite score of 44.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TPL ranks #1,539 out of 4,446 stocks in our coverage universe. Within the Financials sector, Texas Pacific Land Corp ranks #463 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TPL Stock Price and 52-Week Range
Texas Pacific Land Corp (TPL) currently trades at $410.79. The stock gained $32.82 (8.7%) in the most recent trading session. The 52-week high for TPL is $1432.18, which means the stock is currently trading -71.3% from its annual peak. The 52-week low is $280.95, putting the stock 46.2% above its annual trough. Recent trading volume was 1.3M shares, reflecting moderate market activity.
Is TPL Overvalued or Undervalued? — Valuation Analysis
Texas Pacific Land Corp (TPL) carries a value factor score of 47/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 66.74x, compared to the Financials sector average of 14.88x — a premium of 349%. The price-to-book ratio stands at 21.26x, versus the sector average of 1.22x. The price-to-sales ratio is 40.79x, compared to 0.90x for the average Financials stock. On an enterprise value basis, TPL trades at 54.38x EV/EBITDA, versus 3.26x for the sector.
Overall, TPL's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Texas Pacific Land Corp Profitability — ROE, Margins, and Quality Score
Texas Pacific Land Corp (TPL) earns a quality factor score of 95/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 31.9%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 28.6% versus the sector average of 1.2%.
On a margin basis, Texas Pacific Land Corp reports gross margins of 93.0%. The operating margin is 75.0% (sector: 21.8%). Net profit margin stands at 61.2%, versus 17.7% for the average Financials stock. Revenue growth is running at 17.8% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
TPL Debt, Balance Sheet, and Financial Health
Texas Pacific Land Corp has a debt-to-equity ratio of 11.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.40x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $532M.
TPL has a beta of 1.09, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Texas Pacific Land Corp is 31/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Texas Pacific Land Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, Texas Pacific Land Corp reported revenue of $760M and earnings per share (EPS) of $6.98. Net income for the quarter was $465M. Gross margin was 93.0%. Operating income came in at $570M.
In FY 2025, Texas Pacific Land Corp reported revenue of $798M and earnings per share (EPS) of $6.98. Net income for the quarter was $481M. Revenue grew 13.1% year-over-year compared to FY 2024. Operating income came in at $592M.
In Q3 2025, Texas Pacific Land Corp reported revenue of $203M and earnings per share (EPS) of $5.27. Net income for the quarter was $121M. Revenue grew 17.0% year-over-year compared to Q3 2024. Operating income came in at $149M.
In Q2 2025, Texas Pacific Land Corp reported revenue of $188M and earnings per share (EPS) of $5.05. Net income for the quarter was $116M. Revenue grew 8.8% year-over-year compared to Q2 2024. Operating income came in at $144M.
Over the past 8 quarters, Texas Pacific Land Corp has demonstrated a growth trajectory, with revenue expanding from $172M to $760M. Investors analyzing TPL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TPL Dividend Yield and Income Analysis
Texas Pacific Land Corp (TPL) currently pays a dividend yield of 0.7%. At this yield, a $10,000 investment in TPL stock would generate approximately $$69.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning TPL yields less than the typical sector peer. With a net margin of 61.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
TPL Momentum and Technical Analysis Profile
Texas Pacific Land Corp (TPL) has a momentum factor score of 12/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 5/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TPL vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing TPL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TPL vs S&P 500 (SPY) comparison to assess how Texas Pacific Land Corp stacks up against the broader market across all factor dimensions.
TPL Next Earnings Date
No upcoming earnings date has been announced for Texas Pacific Land Corp (TPL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TPL? — Investment Thesis Summary
Texas Pacific Land Corp presents a balanced picture with arguments on both sides. The quality score of 95/100 indicates above-average profitability and business fundamentals. Momentum is weak at 12/100, a headwind for near-term performance. High volatility (stability score 31/100) increases portfolio risk.
In summary, Texas Pacific Land Corp (TPL) earns a Hold rating with a composite score of 44.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TPL stock.
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Institutional Research Dossier
Texas Pacific Land Corp (TPL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Texas Pacific Land Corp (TPL) is currently rated a Hold by our proprietary quantitative model, with a composite score of 44.9/100. While TPL boasts strong profitability and returns, its valuation and investment metrics raise concerns. The company's high-margin land and water services businesses have generated impressive growth and cash flows, but its lofty valuation and lack of reinvestment raise questions about the sustainability of its competitive position.
Business Strategy & Overview
Texas Pacific Land Corp is a unique land and resource management company that generates revenue from a diverse set of operations. The core of its business is managing approximately 880,000 acres of land in Texas, which generates royalties from oil, gas, and mineral rights as well as from commercial leases and land sales. This land portfolio also includes valuable water rights, which TPL monetizes through its water services and operations segment. This segment provides water sourcing, produced-water gathering/treatment, disposal solutions, and related services to oil and gas operators in the Permian Basin.
TPL's business model is highly capital-light, as it can leverage its existing land and mineral rights to generate substantial free cash flow with minimal reinvestment requirements. The company has no debt and has historically returned substantial cash to shareholders through special dividends. This capital allocation strategy has been a key driver of TPL's impressive long-term shareholder returns.
However, TPL's lack of ongoing investment in its business raises questions about the sustainability of its competitive position. While the company's resource base is largely irreplaceable, the Permian Basin has become an increasingly crowded and competitive market for ancillary services like water midstream. TPL will need to judiciously allocate capital to maintain and potentially expand its infrastructure and service offerings to defend its leading position.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.8%
Sector: 9.4%
+90% VS SCTR
Economic Moat Analysis
Texas Pacific Land Corp possesses a wide economic moat stemming from its unique and irreplaceable land and resource asset base. The company's ownership of approximately 880,000 acres of land in the Permian Basin, along with the associated mineral, royalty, and water rights, represents a nearly unmatched competitive advantage that would be extremely difficult for rivals to replicate.
This land dominance, combined with TPL's long history and expertise in managing these assets, creates strong network effects and switching costs for its customers. Oil and gas producers and water service clients are deeply embedded in TPL's infrastructure and operations, making it challenging to shift to alternative providers. The company's royalties on mineral and water rights also provide a steady, high-margin revenue stream that is difficult for competitors to match.
However, TPL's moat may be narrowing to some degree as the Permian Basin has become more crowded, with increasing competition in water midstream services and other ancillary oil and gas operations. The company's light capital investment approach could make it more vulnerable to rivals that are willing to pour more resources into expanding their own service capabilities and infrastructure.
Overall, TPL's moat remains wide, but the company will need to be vigilant in defending its leading position through targeted reinvestment and innovation. Its unparalleled resource base and long-standing industry expertise provide a formidable competitive edge, but TPL cannot rest on its laurels in the face of a rapidly evolving Permian Basin landscape.
Financial Health & Profitability
Texas Pacific Land Corp has demonstrated exceptional financial performance, with robust profitability and returns well above its sector peers. The company's TTM revenue of $798 million and net income of $481 million translate to industry-leading gross and operating margins of 93% and 75%, respectively. TPL's return on equity of 31.9% is more than 3.5 times the sector average of 8.5%.
This exceptional profitability is driven by TPL's capital-light business model and the high-margin nature of its land and water services operations. The company has no debt on its balance sheet and maintains a healthy current ratio of 4.4, giving it ample financial flexibility to weather any potential industry downturns.
However, TPL's free cash flow generation has been more mixed, with a TTM FCF of -$201 million. This negative free cash flow is largely attributable to the company's strategy of returning the majority of its earnings to shareholders through special dividends, rather than reinvesting in the business. While this capital allocation approach has benefited shareholders in the past, it raises questions about the long-term sustainability of TPL's competitive position if it fails to invest sufficiently in maintaining and expanding its asset base and service offerings.
Valuation Assessment
Texas Pacific Land Corp's valuation is undoubtedly rich, with a TTM P/E ratio of 74.4x compared to the sector average of 15.5x. The company's EV/EBITDA multiple of 15.1x is also significantly higher than the sector's 3.5x. These lofty multiples reflect the market's enthusiasm for TPL's exceptional profitability and growth, as well as its unique asset base and business model.
However, TPL's valuation appears to be pricing in a significant degree of future growth and cash flow generation. The company's free cash flow yield of -0.6% (vs. the sector average of 4.1%) suggests that its current valuation may not be fully supported by its near-term cash flow capabilities.
While TPL's long-term growth prospects remain promising, given the continued strength of the Permian Basin and the company's dominant position, its current valuation leaves little margin for error. Any unexpected headwinds or failure to reinvest sufficiently in the business could put significant downward pressure on the stock.
Overall, TPL's valuation appears stretched, and investors would be wise to approach the stock with a degree of caution. The company's exceptional profitability and returns warrant a premium valuation, but the current multiples may be pricing in an overly optimistic view of its future growth and cash flow generation.
Risk & Uncertainty
The primary risks facing Texas Pacific Land Corp are concentrated in the sustainability of its competitive position and the potential for regulatory or market changes that could disrupt its high-margin business model.
First and foremost, TPL's lack of ongoing investment in its asset base and service capabilities raises questions about the long-term durability of its economic moat. As the Permian Basin becomes increasingly crowded, the company's refusal to reinvest profits could leave it vulnerable to more aggressive competitors that are willing to pour resources into expanding their infrastructure and service offerings.
Additionally, TPL's business is heavily dependent on the continued strength of oil and gas exploration and production in the Permian Basin. Any significant slowdown in drilling activity, driven by factors such as commodity price volatility, regulatory changes, or a broader economic downturn, could materially impact the company's royalty and service revenues.
Finally, TPL's water services operations are subject to various environmental regulations and permitting requirements that could tighten over time, potentially increasing the company's compliance costs or limiting its ability to expand its water-related activities.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTPL's unrivaled land and resource position in the Permian Basin gives it a virtually impregnable competitive moat that will continue to generate exceptional profits and cash flows for years to come.
BULL VIEWThe company's capital-light business model and lack of debt provide it with immense financial flexibility to navigate any industry downturns, while allowing it to return substantial capital to shareholders through special dividends.
The Bear Case
BEAR VIEWTPL's refusal to reinvest its substantial profits into maintaining and expanding its asset base and service capabilities leaves it vulnerable to more aggressive competitors that are willing to pour resources into expanding their Permian Basin operations.
BEAR VIEWThe company's lofty valuation, with a P/E ratio of over 70x, appears to be pricing in unrealistic expectations for future growth and cash flow generation, leaving little margin for error.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TPL and 4,400+ other equities.
Texas Pacific Land Corp exhibits a 1998% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
28.6%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
93.0%
Sector: 0.0%
Operating Margin
Core business profitability
75.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
61.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-72%
Income Projection audit
A $10,000 investment would generate approximately $69 annually in dividends at the current trailing rate.
