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Texas Pacific Land Trust (NYSE:TPL) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of TPL, it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Texas Pacific Land Trust here.
Flawless balance sheet with solid track record
In the past couple of years, TPL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 92%, which paints a buoyant picture for the company. TPL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TPL manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about TPL’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$6.3b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Texas Pacific Land Trust, there are three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for TPL’s future growth? Take a look at our free research report of analyst consensus for TPL’s outlook.
- Valuation: What is TPL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TPL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TPL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.