Long-established in the Oil & Gas industry, Texas Pacific Land Corp (TPL, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 7.17%, juxtaposed with a three-month change of 12.48%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Texas Pacific Land Corp.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 9/10
- Profitability rank: 9/10
- Growth rank: 4/10
- GF Value rank: 1/10
- Momentum rank: 3/10
Based on the above method, GuruFocus assigned Texas Pacific Land Corp the GF Score of 69 out of 100, which signals poor future outperformance potential.
Understanding Texas Pacific Land Corp Business
Texas Pacific Land Corp is mainly engaged in the sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. It operates its business in two reportable segments: Land and Resource Management and Water Service and Operations. The Land and Resource Management segment focuses on managing surface acres of land and its oil and gas royalty interests, principally concentrated in the Permian Basin. The Water Services and Operations segment encompasses the business of providing full-service water offerings to operators, produced-water treatment, infrastructure development, and disposal solutions. The company generates the majority of its revenue from the Land and Resource Management segment.
Growth Prospects
A lack of significant growth is another area where Texas Pacific Land Corp seems to falter, as evidenced by the company's low Growth rank. This low ranking indicates that the company may struggle to expand its operations or increase its market share in the near future. The growth rank is a critical metric for investors looking for companies with strong potential for expansion and increased profitability.
Next Steps
Despite Texas Pacific Land Corp's strong financial strength and profitability, its low growth metrics and GF Score highlight the firm's potential for underperformance. Investors should consider these factors when evaluating the company's future prospects. While the company has a solid foundation, its ability to grow and adapt to changing market conditions remains uncertain. For those interested in exploring other investment opportunities, GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
