Texas Pacific LandTPL -1.88%90 ROE % is 37.92% as of Mar. 2026, which is 31% below its 10-year median of 55.08. GuruFocus rates TPL with a GF Score™ of 90/100 and a GF Value™ of $369.98 (Fairly Valued). The stock has 2 warning signs investors should review. Among 960 Oil & Gas companies, Texas Pacific Land ranks better than 94.17% on this metric.
The historical rank and industry rank for Texas Pacific Land's ROE % or its related term are showing as below:
TPL'
s ROE % Range Over the Past 10 Years
Min: 35.3 Med: 55.08 Max: 127.33
Current: 36.61
During the past 13 years, Texas Pacific Land's highest ROE % was 127.33%. The lowest was 35.30%. And the median was 55.08%.
TPL's ROE % is ranked better than 94.17% of 960
companies
in the Oil & Gas industry
Industry Median: 5.81
vs TPL: 36.61
Texas Pacific Land (NYSE:TPL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Texas Pacific Land ROE % Related Terms
Texas Pacific Land ROE % Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's ROE % distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Texas Pacific Land (TPL) has a ROE % of 37.92% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Texas Pacific Land and its competitors. This is 31% below median its historical median of 55.08. Over the past decade, Texas Pacific Land's ROE % has ranged from 35.30 to 127.33. According to the industry distribution chart, Texas Pacific Land ranks #56 out of 960 companies in the Oil & Gas industry, placing it in the top 5.8%.
Is Texas Pacific Land's ROE % too high?
Texas Pacific Land's current ROE % of 37.92% is 31% 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 ROE % is 5.81. Texas Pacific Land's value of 37.92% is 552.7% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #56 out of 960 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 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's ROE % compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #56 out of 960 companies for ROE %. This places Texas Pacific Land in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 5.81. Texas Pacific Land's value of 37.92% is 552.7% above this benchmark. Historically, Texas Pacific Land's own ROE % 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 5.81, 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 ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.81, based on 960 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current ROE % of 37.92% is 552.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Texas Pacific Land and its competitors. For the Oil & Gas industry, the median ROE % is 5.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current ROE % is 37.92%, which is 31% 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 Fairly Valued. The stock's GF Value™ is $369.98, compared to a current price of $407.20 — trading 10.1% above its estimated fair value. The current ROE % is 37.92%, which is 31% below median its 10-year median of 55.08 and 552.7% above the Oil & Gas industry median of 5.81. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current ROE % is 37.92% 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 $407.20 is trading 10.1% above its estimated GF Value™ of $369.98.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
ROE %: 37.92% (31% below median its 10-year median of 55.08)
GF Value™: $369.98 vs. price of $407.20 (10.1% above fair value)
Industry Position: 552.7% above the Oil & Gas median (#56 of 960)
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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