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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Texas Pacific Land's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $2.72.
The industry rank for Texas Pacific Land's Net-Net Working Capital or its related term are showing as below:
TPL's Price-to-Net-Net-Working-Capital is ranked worse than 98.45% of 193
companies
in the Oil & Gas industry
Industry Median: 6.61
vs TPL: 152.96
Texas Pacific Land (NYSE:TPL) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Texas Pacific Land Net-Net Working Capital Related Terms
Texas Pacific Land Net-Net Working Capital Historical Data
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The historical data trend for Texas Pacific Land's Net-Net Working Capital 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.
TPL vs EQT, EXE, PR: Net-Net Working Capital Comparison
For the Oil & Gas E&P subindustry, Texas Pacific Land's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $2.72 mean?
Texas Pacific Land (TPL) has a Net-Net Working Capital of $2.72 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Texas Pacific Land According to the industry distribution chart, Texas Pacific Land ranks #190 out of 193 companies in the Oil & Gas industry, placing it in the top 98.4%.
Is Texas Pacific Land's Net-Net Working Capital too high?
Texas Pacific Land's current Net-Net Working Capital is $2.72. The Oil & Gas industry median Net-Net Working Capital is 6.61. Texas Pacific Land's value of $2.72 is 58.9% below this industry median. Based on the distribution chart, Texas Pacific Land ranks #190 out of 193 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Texas Pacific Land has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Net-Net Working Capital compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #190 out of 193 companies for Net-Net Working Capital. This places Texas Pacific Land in the lower half of its industry. The industry median Net-Net Working Capital is 6.61. Texas Pacific Land's value of $2.72 is 58.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Oil & Gas company?
The median Net-Net Working Capital among Oil & Gas companies is 6.61, based on 193 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current Net-Net Working Capital of $2.72 is 58.9% below 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Texas Pacific Land For the Oil & Gas industry, the median Net-Net Working Capital is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current Net-Net Working Capital is $2.72. 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 $416.05 — trading 11.4% above its estimated fair value. The current Net-Net Working Capital is $2.72 and 58.9% below the Oil & Gas industry median of 6.61. Texas Pacific Land's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Net-Net Working Capital is $2.72 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 $416.05 is trading 11.4% above its estimated GF Value™ of $373.63.
GuruFocus considers Texas Pacific Land to be Modestly Overvalued.
Key valuation signals for TPL:
Net-Net Working Capital: $2.72
GF Value™: $373.63 vs. price of $416.05 (11.4% above fair value)
Industry Position: 58.9% below the Oil & Gas median (#190 of 193)
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.
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