TYLER TECHNOLOGIES INC (TYL)
US9022521051 - Common Stock
Taking everything into account, TYL scores 4 out of 10 in our fundamental rating. TYL was compared to 277 industry peers in the Software industry. Both the profitability and the financial health of TYL get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, TYL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TYL was profitable.
TYL had a positive operating cash flow in the past year.
TYL had positive earnings in each of the past 5 years.
Each year in the past 5 years TYL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TYL (4.11%) is better than 76.09% of its industry peers.
The Return On Equity of TYL (6.26%) is better than 76.45% of its industry peers.
TYL's Return On Invested Capital of 5.64% is amongst the best of the industry. TYL outperforms 81.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TYL is significantly below the industry average of 10.18%.
The 3 year average ROIC (4.92%) for TYL is below the current ROIC(5.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 6.26% | ||
| ROIC | 5.64% |
ROA(3y)3.49%
ROA(5y)4.92%
ROE(3y)6.28%
ROE(5y)7.54%
ROIC(3y)4.92%
ROIC(5y)6.01%
1.3 Margins
TYL's Profit Margin of 9.50% is fine compared to the rest of the industry. TYL outperforms 77.54% of its industry peers.
TYL's Profit Margin has declined in the last couple of years.
TYL has a Operating Margin of 12.34%. This is amongst the best in the industry. TYL outperforms 84.42% of its industry peers.
In the last couple of years the Operating Margin of TYL has declined.
TYL has a Gross Margin of 44.42%. This is in the lower half of the industry: TYL underperforms 71.74% of its industry peers.
TYL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.34% | ||
| PM (TTM) | 9.5% | ||
| GM | 44.42% |
OM growth 3Y-9.32%
OM growth 5Y-6.67%
PM growth 3Y-21.31%
PM growth 5Y-11.63%
GM growth 3Y-3.16%
GM growth 5Y-1.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TYL is destroying value.
The number of shares outstanding for TYL has been increased compared to 1 year ago.
The number of shares outstanding for TYL has been increased compared to 5 years ago.
TYL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.96 indicates that TYL is not in any danger for bankruptcy at the moment.
TYL has a Altman-Z score of 8.96. This is amongst the best in the industry. TYL outperforms 84.42% of its industry peers.
TYL has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
TYL's Debt to FCF ratio of 1.86 is fine compared to the rest of the industry. TYL outperforms 68.84% of its industry peers.
TYL has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
TYL has a Debt to Equity ratio (0.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 8.96 |
ROIC/WACC0.58
WACC9.79%
2.3 Liquidity
TYL has a Current Ratio of 0.94. This is a bad value and indicates that TYL is not financially healthy enough and could expect problems in meeting its short term obligations.
TYL has a Current ratio of 0.94. This is in the lower half of the industry: TYL underperforms 79.35% of its industry peers.
TYL has a Quick Ratio of 0.94. This is a bad value and indicates that TYL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.94, TYL is not doing good in the industry: 78.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
TYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.96%, which is quite good.
TYL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
Looking at the last year, TYL shows a small growth in Revenue. The Revenue has grown by 6.77% in the last year.
Measured over the past years, TYL shows a quite strong growth in Revenue. The Revenue has been growing by 15.85% on average per year.
EPS 1Y (TTM)11.96%
EPS 3Y12.22%
EPS 5Y10.2%
EPS growth Q2Q25%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y20.46%
Revenue growth 5Y15.85%
Revenue growth Q2Q8.58%
3.2 Future
The Earnings Per Share is expected to grow by 16.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.39% on average over the next years. This is quite good.
EPS Next Y16.82%
EPS Next 2Y15.27%
EPS Next 3Y15.06%
EPS Next 5Y16.47%
Revenue Next Year8.25%
Revenue Next 2Y8.94%
Revenue Next 3Y9.12%
Revenue Next 5Y9.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TYL is valuated quite expensively with a Price/Earnings ratio of 59.36.
TYL's Price/Earnings is on the same level as the industry average.
TYL is valuated expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 47.20, the valuation of TYL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TYL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TYL to the average of the S&P500 Index (20.15), we can say TYL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.36 | ||
| Fwd PE | 47.2 |
4.2 Price Multiples
67.03% of the companies in the same industry are more expensive than TYL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TYL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.7 | ||
| EV/EBITDA | 52.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TYL may justify a higher PE ratio.
TYL's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.53
PEG (5Y)5.82
EPS Next 2Y15.27%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
No dividends for TYL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TYLER TECHNOLOGIES INC
NYSE:TYL (5/17/2024, 7:04:00 PM)
After market: 489.14 0 (0%)489.14
+1.17 (+0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.36 | ||
| Fwd PE | 47.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.53
PEG (5Y)5.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 6.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.34% | ||
| PM (TTM) | 9.5% | ||
| GM | 44.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.96%
EPS 3Y12.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.77%
Revenue growth 3Y20.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y