Texas Pacific LandTPL +2.28%86 Altman Z2-Score is 15.19 as of Jun. 25, 2026, which is 7% below its 10-year median of 16.42. GuruFocus rates TPL with a GF Score™ of 86/100 and a GF Value™ of $367.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,012 Oil & Gas companies, Texas Pacific Land ranks better than 93.48% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Good Sign:
Texas Pacific Land has a Altman Z2-Score of 15.19, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Texas Pacific Land's Altman Z2-Score or its related term are showing as below:
TPL'
s Altman Z2-Score Range Over the Past 10 Years
Min: 11.48 Med: 16.42 Max: 22.62
Current: 15.19
During the past 13 years, Texas Pacific Land's highest Altman Z2-Score was 22.62. The lowest was 11.48. And the median was 16.42.
Texas Pacific Land (NYSE:TPL) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Texas Pacific Land Altman Z2-Score Related Terms
Texas Pacific Land Altman Z2-Score Historical Data
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The historical data trend for Texas Pacific Land's Altman Z2-Score 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 Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Altman Z2-Score falls into.
Altman 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.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Texas Pacific Land's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.1896
+
3.26
*
0.96
+
6.72
*
0.3661
+
1.05
*
7.9585
=
15.19
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Texas Pacific Land (TPL) has a Altman Z2-Score of 15.19 as of Jun. 25, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Texas Pacific Land and its competitors. This is near median its historical median of 16.42. Over the past decade, Texas Pacific Land's Altman Z2-Score has ranged from 11.48 to 22.62. According to the industry distribution chart, Texas Pacific Land ranks #66 out of 1012 companies in the Oil & Gas industry, placing it in the top 6.5%.
Is Texas Pacific Land's Altman Z2-Score too high?
Texas Pacific Land's current Altman Z2-Score of 15.19 is near median its 10-year median of 16.42. Over the past 10 years, this metric has ranged from a low of 11.48 to a high of 22.62. The Oil & Gas industry median Altman Z2-Score is 1.81. Texas Pacific Land's value of 15.19 is 741.6% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #66 out of 1012 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Altman Z2-Score compare to EXE and EQT?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #66 out of 1012 companies for Altman Z2-Score. This places Texas Pacific Land in the top 7% of its industry — outperforming the majority of peers. The industry median Altman Z2-Score is 1.81. Texas Pacific Land's value of 15.19 is 741.6% above this benchmark. Historically, Texas Pacific Land's own Altman Z2-Score has ranged from 11.48 to 22.62 over the past decade. While the company's 10-year median is 16.42 vs. the industry median of 1.81, 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 Altman Z2-Score for an Oil & Gas company?
The median Altman Z2-Score among Oil & Gas companies is 1.81, based on 1,012 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current Altman Z2-Score of 15.19 is 741.6% 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Texas Pacific Land and its competitors. For the Oil & Gas industry, the median Altman Z2-Score is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current Altman Z2-Score is 15.19, which is near median its own 10-year median of 16.42. 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 $367.46, compared to a current price of $386.15 — trading 5.1% above its estimated fair value. The current Altman Z2-Score is 15.19, which is near median its 10-year median of 16.42 and 741.6% above the Oil & Gas industry median of 1.81. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Altman Z2-Score is 15.19 as of Jun. 25, 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 $386.15 is trading 5.1% above its estimated GF Value™ of $367.46.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
Altman Z2-Score: 15.19 (near median its 10-year median of 16.42)
GF Value™: $367.46 vs. price of $386.15 (5.1% above fair value)
Industry Position: 741.6% above the Oil & Gas median (#66 of 1012)
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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