Texas Pacific LandTPL +3.88%86 Return-on-Tangible-Equity is 38.76% as of Mar. 2026, which is 30% below its 10-year median of 55.08. GuruFocus rates TPL with a GF Score™ of 86/100 and a GF Value™ of $367.74 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 948 Oil & Gas companies, Texas Pacific Land ranks better than 90.4% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Texas Pacific Land's annualized net income for the quarter that ended in Mar. 2026 was $571.6 Mil. Texas Pacific Land's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,474.9 Mil. Therefore, Texas Pacific Land's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 38.76%.
The historical rank and industry rank for Texas Pacific Land's Return-on-Tangible-Equity or its related term are showing as below:
TPL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 35.3 Med: 55.08 Max: 127.33
Current: 37.52
During the past 13 years, Texas Pacific Land's highest Return-on-Tangible-Equity was 127.33%. The lowest was 35.30%. And the median was 55.08%.
TPL's Return-on-Tangible-Equity is ranked better than 90.4% of 948
companies
in the Oil & Gas industry
Industry Median: 6.71
vs TPL: 37.52
Texas Pacific Land (NYSE:TPL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Texas Pacific Land Return-on-Tangible-Equity Related Terms
Texas Pacific Land Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land's Return-on-Tangible-Equity 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.
Texas Pacific Land Return-on-Tangible-Equity Chart
TPL vs EQT, EXE, PR: Return-on-Tangible-Equity Comparison
For the Oil & Gas E&P subindustry, Texas Pacific Land's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Return-on-Tangible-Equity 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 the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 38.76% mean?
Texas Pacific Land (TPL) has a Return-on-Tangible-Equity of 38.76% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Texas Pacific Land and its competitors. This is 30% below median its historical median of 55.08. Over the past decade, Texas Pacific Land's Return-on-Tangible-Equity has ranged from 35.30 to 127.33. According to the industry distribution chart, Texas Pacific Land ranks #91 out of 948 companies in the Oil & Gas industry, placing it in the top 9.6%.
Is Texas Pacific Land's Return-on-Tangible-Equity too high?
Texas Pacific Land's current Return-on-Tangible-Equity of 38.76% is 30% below median its 10-year median of 55.08. Over the past 10 years, this metric has ranged from a low of 35.30 to a high of 127.33. The Oil & Gas industry median Return-on-Tangible-Equity is 6.71. Texas Pacific Land's value of 38.76% is 477.6% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #91 out of 948 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 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Return-on-Tangible-Equity compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #91 out of 948 companies for Return-on-Tangible-Equity. This places Texas Pacific Land in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.71. Texas Pacific Land's value of 38.76% is 477.6% above this benchmark. Historically, Texas Pacific Land's own Return-on-Tangible-Equity has ranged from 35.30 to 127.33 over the past decade. While the company's 10-year median is 55.08 vs. the industry median of 6.71, 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 Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.71, based on 948 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current Return-on-Tangible-Equity of 38.76% is 477.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Texas Pacific Land and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current Return-on-Tangible-Equity is 38.76%, which is 30% below median its own 10-year median of 55.08. 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 $367.74, compared to a current price of $436.30 — trading 18.6% above its estimated fair value. The current Return-on-Tangible-Equity is 38.76%, which is 30% below median its 10-year median of 55.08 and 477.6% above the Oil & Gas industry median of 6.71. Texas Pacific Land's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Return-on-Tangible-Equity is 38.76% 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 $436.30 is trading 18.6% above its estimated GF Value™ of $367.74.
GuruFocus considers Texas Pacific Land to be Modestly Overvalued.
Key valuation signals for TPL:
Return-on-Tangible-Equity: 38.76% (30% below median its 10-year median of 55.08)
GF Value™: $367.74 vs. price of $436.30 (18.6% above fair value)
Industry Position: 477.6% above the Oil & Gas median (#91 of 948)
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.
86GF Score
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