Texas Pacific LandTPL -1.88%90 3-Year ROIIC % is 2.36 as of Dec. 2025, which is 98% below its 10-year median of 105.89. 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 925 Oil & Gas companies, Texas Pacific Land ranks better than 56% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Texas Pacific Land's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 2.36%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Texas Pacific Land's 3-Year ROIIC % or its related term are showing as below:
TPL's 3-Year ROIIC % is ranked better than 56% of 925
companies
in the Oil & Gas industry
Industry Median: -0.02
vs TPL: 2.36
Texas Pacific Land (NYSE:TPL) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Texas Pacific Land 3-Year ROIIC % Related Terms
Texas Pacific Land 3-Year ROIIC % Historical Data
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The historical data trend for Texas Pacific Land's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Texas Pacific Land (TPL) has a 3-Year ROIIC % of 2.36 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Texas Pacific Land and its competitors. This is 98% below median its historical median of 105.89. Over the past decade, Texas Pacific Land's 3-Year ROIIC % has ranged from 2.36 to 673.05. According to the industry distribution chart, Texas Pacific Land ranks #407 out of 925 companies in the Oil & Gas industry, placing it in the top 44%.
Is Texas Pacific Land's 3-Year ROIIC % too high?
Texas Pacific Land's current 3-Year ROIIC % of 2.36 is 98% below median its 10-year median of 105.89. Over the past 10 years, this metric has ranged from a low of 2.36 to a high of 673.05. Based on the distribution chart, Texas Pacific Land ranks #407 out of 925 companies in the Oil & Gas industry, which is above the industry midpoint. 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 3-Year ROIIC % compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #407 out of 925 companies for 3-Year ROIIC %. This puts Texas Pacific Land in the upper half of its industry. Historically, Texas Pacific Land's own 3-Year ROIIC % has ranged from 2.36 to 673.05 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 3-Year ROIIC % for an Oil & Gas company?
A good 3-Year ROIIC % depends on the Oil & Gas industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Texas Pacific Land and its competitors. Texas Pacific Land's current 3-Year ROIIC % is 2.36, which is 98% below median its own 10-year median of 105.89. 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 3-Year ROIIC % is 2.36, which is 98% below median its 10-year median of 105.89. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current 3-Year ROIIC % is 2.36 as of Dec. 2025. 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:
3-Year ROIIC %: 2.36 (98% below median its 10-year median of 105.89)
GF Value™: $369.98 vs. price of $407.20 (10.1% above 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.
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