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Texas Pacific Land has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Texas Pacific Land Corp shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Texas Pacific Land's Interest Coverage for the quarter that ended in Jun. 2026 was 197.14.
Texas Pacific Land's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.02.
As of today, Texas Pacific Land's Altman Z-Score is 78.63.
Texas Pacific Land (NYSE:TPL) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Texas Pacific Land has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Texas Pacific Land Financial Strength Related Terms
TPL vs EQT, EXE, PR: Financial Strength Comparison
For the Oil & Gas E&P subindustry, Texas Pacific Land's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Financial Strength distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Texas Pacific Land Corp has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Texas Pacific Land's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Texas Pacific Land has a Z-score of 78.63, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 78.63 is strong.
* 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 Financial Strength of 10 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Texas Pacific Land and its competitors. This is 11% above median its historical median of 9.00. Over the past decade, Texas Pacific Land's Financial Strength has ranged from 7.00 to 10.00.
Is Texas Pacific Land's Financial Strength too high?
Texas Pacific Land's current Financial Strength of 10 is 11% above median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, Texas Pacific Land has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Financial Strength compare to EQT and EXE?
Texas Pacific Land's Financial Strength of 10 can be compared against companies in the Oil & Gas industry. Historically, Texas Pacific Land's own Financial Strength has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Texas Pacific Land and its competitors. Texas Pacific Land's current Financial Strength is 10, which is 11% above median its own 10-year median of 9.00. 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 Fairly Valued. The stock's GF Value™ is $385.92, compared to a current price of $350.44 — trading 9.2% below its estimated fair value. The current Financial Strength is 10, which is 11% above median its 10-year median of 9.00. Texas Pacific Land's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Financial Strength is 10 as of Jun. 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 undervalued.
The current stock price of $350.44 is trading 9.2% below its estimated GF Value™ of $385.92.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
Financial Strength: 10 (11% above median its 10-year median of 9.00)
GF Value™: $385.92 vs. price of $350.44 (9.2% below fair value)
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.
79GF Score
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