Price to Operating Profit (P/OP)
since 2005
Calculation
Texas Pacific Land Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 21, 2024 | 24.02 | = | 507.46 | ÷ | 21.13 | 21.13 | = | 486,053 | ÷ | 23,005,266 | |
| Feb 22, 2023 | 24.48 | = | 596.28 | ÷ | 24.36 | 24.36 | = | 562,307 | ÷ | 23,086,488 | |
| Feb 23, 2022 | 21.63 | = | 337.37 | ÷ | 15.60 | 15.60 | = | 362,393 | ÷ | 23,236,125 | |
| Feb 25, 2021 | 39.69 | = | 370.62 | ÷ | 9.34 | 9.34 | = | 217,251 | ÷ | 23,268,468 | |
| Feb 27, 2020 | 13.16 | = | 226.07 | ÷ | 17.17 | 17.17 | = | 399,573 | ÷ | 23,268,468 | |
| Feb 28, 2019 | 22.12 | = | 247.87 | ÷ | 11.20 | 11.20 | = | 260,834 | ÷ | 23,281,242 | |
| Feb 28, 2018 | 35.20 | = | 179.69 | ÷ | 5.10 | 5.10 | = | 119,776 | ÷ | 23,464,797 | |
| Feb 28, 2017 | 42.98 | = | 99.50 | ÷ | 2.32 | 2.32 | = | 55,058 | ÷ | 23,781,942 | |
| Feb 29, 2016 | 14.67 | = | 45.33 | ÷ | 3.09 | 3.09 | = | 75,256 | ÷ | 24,354,192 | |
| Feb 27, 2015 | 22.51 | = | 46.36 | ÷ | 2.06 | 2.06 | = | 51,417 | ÷ | 24,967,197 | |
| Feb 28, 2014 | 28.74 | = | 45.37 | ÷ | 1.58 | 1.58 | = | 40,131 | ÷ | 25,419,606 | |
| Mar 11, 2013 | 17.68 | = | 19.63 | ÷ | 1.11 | 1.11 | = | 29,303 | ÷ | 26,385,774 | |
| Mar 12, 2012 | 13.83 | = | 15.44 | ÷ | 1.12 | 1.12 | = | 30,737 | ÷ | 27,526,242 | |
| Mar 11, 2011 | 25.87 | = | 14.81 | ÷ | 0.57 | 0.57 | = | 16,398 | ÷ | 28,645,332 | |
| Mar 12, 2010 | 27.93 | = | 9.40 | ÷ | 0.34 | 0.34 | = | 9,991 | ÷ | 29,683,542 | |
| Mar 16, 2009 | 13.01 | = | 6.62 | ÷ | 0.51 | 0.51 | = | 15,576 | ÷ | 30,618,438 | |
| Mar 14, 2008 | 30.54 | = | 11.17 | ÷ | 0.37 | 0.37 | = | 11,508 | ÷ | 31,465,125 | |
| Mar 15, 2007 | 31.47 | = | 16.13 | ÷ | 0.51 | 0.51 | = | 16,318 | ÷ | 31,838,625 | |
| Mar 16, 2006 | 25.52 | = | 9.40 | ÷ | 0.37 | 0.37 | = | 11,927 | ÷ | 32,378,625 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Texas Pacific Land Corp. Annual Report.
The financial performance from 2006 to 2024 is characterized by a substantial long-term expansion in both share price and operating profit per share. While the share price grew from $9.40 in 2006 to $507.46 in 2024, the operating profit per share exhibited a more pronounced acceleration, rising from $0.37 to $21.13 over the same period.
- Operating Profit Growth
- A period of relative stability in operating profit per share was observed between 2006 and 2013, with values fluctuating between $0.34 and $1.12. This was followed by a phase of rapid escalation starting in 2014, which peaked at $24.36 in 2023.
- P/OP Ratio Volatility
- The Price to Operating Profit (P/OP) ratio demonstrated significant volatility across the two decades. Notable peaks occurred in 2017 at 42.98 and 2021 at 39.69, indicating intervals where the market valuation expanded aggressively relative to underlying operating earnings.
- Valuation Normalization
- Following a period of high variance, the P/OP ratio entered a phase of stabilization between 2022 and 2024, maintaining a narrow range between 21.63 and 24.48. This suggests a convergence between market price expectations and actual operating profit growth in the most recent fiscal years.
- Profit and Valuation Divergence
- Instances of divergence between earnings growth and valuation multiples are evident. For example, in 2020, a significant increase in operating profit per share to $17.17 coincided with a compression of the P/OP ratio to 13.16, representing a valuation contraction despite improving fundamental profitability.
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