Summary: ON SALE
Score: 18/20
MOS: 96%
Share Price: $556
Sticker Price: $16,367
Is Texas Pacific Land Trust a good buy?
The #1 ranked stock on the TOP 50 ON SALE within Tykr.
The Texas Pacific Land Trust is a land trust based out of Dallas, Texas. This company owns well over 900,000 acres in 20 West Texas counties. They are among the largest private landowners in the state of Texas.
Revenue is generated from land sales, oil and gas royalties, wind farms, interest on notes receivable, and interest on investments. Overall, TPL is essentially a landlord. They don’t drill for oil, they simply charge rent for those who are drilling. Now that’s a smart business model!
I did a little more homework. Check out these interesting facts…
They only have 44 employees
They have NO debt the last 10 years.
They have NO liabilities the last 10 years.
and…
They generated over $490M revenue in 2019. That’s an average revenue per employee of $11M.
I’ve never seen a more profitable business. It’s no wonder they are ranked #1 on Tykr.
So what does the future of TPL look like?
This business may not grow as quickly as some tech stocks but fortunately, the value of land is increasing. It’s the one thing we can’t make any more of. As long as the land value increases, this stock price will increase.
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