This is a step-by-step stock review to answer the question, is Texas Pacific Land Trust (TPL) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Texas Pacific Land Trust (TPL) stock a good buy?
- Texas Pacific Land Trust Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Texas Pacific Land Trust (TPL) stock a good buy?
1. Texas Pacific Land Trust Company History
- Founded: 1888 as the Texas Pacific Land Trust to hold land grants from the Texas Pacific Railway.
- Initial Purpose: Managed land acquired from the railroad for investment and revenue purposes.
- Transformation: Evolved from a land trust into a major land and resource management company.
- Focus: Primarily involved in land leasing for oil and gas exploration, as well as ranching and real estate.
- Public Listing: Became a publicly traded company in 1926, now listed under the ticker symbol TPL.
- Growth: Expanded its land holdings and diversified its revenue streams from mineral royalties, land sales, and leasing.
- Recent Developments: Continues to capitalize on its extensive land portfolio, benefiting from rising energy prices and real estate development.
- Headquarters: Located in Dallas, Texas.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 61
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Texas Pacific Land Trust makes money:
- Land Leasing: Generates revenue by leasing land for oil and gas exploration, which includes royalties from production.
- Land Sales: Earns income from selling portions of its land holdings.
- Royalty Income: Collects royalties from mineral extraction and resource development on its land.
- Ranching: Receives revenue from leasing land for cattle ranching and other agricultural uses.
- Real Estate Development: Profits from real estate development projects and commercial leasing on its land.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Texas Pacific Land Trust stacks up against other companies.
- VAALCO Energy, Inc.(EGY) – 72
- Civitas Resources, Inc.(CIVI) – 67
- Gulfport Energy Corporation.(GPOR) – 67
- North European Oil Royalty Trust.(NRT) – 67
- Vista Energy, S.A.B. de C.V.(VIST) – 67
- Texas Pacific Land Corporation.(TPL) – 61
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Appointment (2016): Glover was appointed CEO in 2016, providing strong leadership during a period of significant growth for the company.
- Strategic Transformation: He played a key role in the transition of Texas Pacific from a land trust to a publicly traded corporation in 2021, a move that enhanced the company’s structure and shareholder value.
- Expansion of Operations: Under Glover’s leadership, Texas Pacific expanded its operations, particularly in water services, becoming a key player in providing water solutions to the oil and gas industry in the Permian Basin.
- Revenue Growth: He oversaw substantial revenue growth, driven by the company’s strategic focus on oil, gas, and land management operations, contributing to strong financial performance.
- Innovation and Technology: Glover emphasized the adoption of innovative technologies to improve land management and resource extraction, positioning Texas Pacific as a modern leader in the industry.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Texas Pacific Land Trust (TPL) is 83/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Texas Pacific Land Trust (TPL) stock a good buy?
Some of the top questions investors can have is Texas Pacific Land Trust (TPL) stock a good buy or should I buy Texas Pacific Land Trust (TPL) stock?
Texas Pacific Land Trust (TPL) is an attractive investment due to its unique business model centered around land and resource management in the Permian Basin. As one of the largest landowners in Texas, TPL generates revenue from oil and gas royalties, water services, and land sales, benefiting from the region’s energy boom. Under CEO Tyler Glover, TPL successfully transitioned from a land trust to a publicly traded corporation, enhancing shareholder value and operational flexibility. The company’s consistent financial performance and strategic focus on sustainable resource management strengthen its investment appeal. However, reliance on the volatile energy market poses risks. Investors should consider TPL’s strong asset base and growth potential against the challenges of the energy sector.
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To truly know if Texas Pacific Land Trust is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.