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Texas Pacific LandTPL -0.87%94 Cash Ratio is 2.41 as of Mar. 2026, which is 71% below its 10-year median of 8.42. GuruFocus rates TPL with a GF Score™ of 94/100 and a GF Value™ of $373.63 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 963 Oil & Gas companies, Texas Pacific Land ranks better than 85.77% on this metric.
Texas Pacific Land has a Cash Ratio of 2.41. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Texas Pacific Land's Cash Ratio or its related term are showing as below:
TPL'
s Cash Ratio Range Over the Past 10 Years
Min: 1.97 Med: 8.42 Max: 27.29
Current: 2.41
During the past 13 years, Texas Pacific Land's highest Cash Ratio was 27.29. The lowest was 1.97. And the median was 8.42.
TPL's Cash Ratio is ranked better than 85.77% of 963
companies
in the Oil & Gas industry
Industry Median: 0.44
vs TPL: 2.41
Texas Pacific Land (NYSE:TPL) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Texas Pacific Land Cash Ratio Related Terms
Texas Pacific Land Cash Ratio Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, Texas Pacific Land's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Pacific Land Cash Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Texas Pacific Land (TPL) has a Cash Ratio of 2.41 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Texas Pacific Land and its competitors. This is 71% below median its historical median of 8.42. Over the past decade, Texas Pacific Land's Cash Ratio has ranged from 1.97 to 27.29. According to the industry distribution chart, Texas Pacific Land ranks #137 out of 963 companies in the Oil & Gas industry, placing it in the top 14.2%.
Is Texas Pacific Land's Cash Ratio too high?
Texas Pacific Land's current Cash Ratio of 2.41 is 71% below median its 10-year median of 8.42. Over the past 10 years, this metric has ranged from a low of 1.97 to a high of 27.29. The Oil & Gas industry median Cash Ratio is 0.44. Texas Pacific Land's value of 2.41 is 447.7% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #137 out of 963 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Pacific Land has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Cash Ratio compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #137 out of 963 companies for Cash Ratio. This places Texas Pacific Land in the top 14% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.44. Texas Pacific Land's value of 2.41 is 447.7% above this benchmark. Historically, Texas Pacific Land's own Cash Ratio has ranged from 1.97 to 27.29 over the past decade. While the company's 10-year median is 8.42 vs. the industry median of 0.44, Texas Pacific Land has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for an Oil & Gas company?
The median Cash Ratio among Oil & Gas companies is 0.44, based on 963 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current Cash Ratio of 2.41 is 447.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Texas Pacific Land and its competitors. For the Oil & Gas industry, the median Cash Ratio is 0.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current Cash Ratio is 2.41, which is 71% below median its own 10-year median of 8.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Pacific Land stock overvalued right now?
Based on GuruFocus' analysis, Texas Pacific Land (TPL) is currently considered Modestly Overvalued. The stock's GF Value™ is $373.63, compared to a current price of $412.44 — trading 10.4% above its estimated fair value. The current Cash Ratio is 2.41, which is 71% below median its 10-year median of 8.42 and 447.7% above the Oil & Gas industry median of 0.44. Texas Pacific Land's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Cash Ratio is 2.41 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Pacific Land (TPL) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Pacific Land stock appears to be overvalued.
The current stock price of $412.44 is trading 10.4% above its estimated GF Value™ of $373.63.
GuruFocus considers Texas Pacific Land to be Modestly Overvalued.
Key valuation signals for TPL:
Cash Ratio: 2.41 (71% below median its 10-year median of 8.42)
GF Value™: $373.63 vs. price of $412.44 (10.4% above fair value)
Industry Position: 447.7% above the Oil & Gas median (#137 of 963)
No single metric tells the full story. See the TPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The group operates its business in two reportable segments: Land and Resource Management and Water Service and Operations. The Land and Resource Management segment, which generates maximum revenue, focuses on managing its several surface acres of land and its oil and gas royalty interests, principally concentrated in the Permian Basin. The revenue streams of this segment consist of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin.
94GF Score
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