TYLER TECHNOLOGIES INC (TYL) Stock Fundamental Analysis
NYSE:TYL - New York Stock Exchange, Inc. - US9022521051 - Common Stock - Currency: USD
TYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. TYL has an average financial health and profitability rating. TYL is valued quite expensively, but it does show have an excellent growth rating. These ratings would make TYL suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year TYL was profitable.
TYL had a positive operating cash flow in the past year.
Each year in the past 5 years TYL has been profitable.
In the past 5 years TYL always reported a positive cash flow from operatings.
1.2 Ratios
TYL's Return On Assets of 5.58% is fine compared to the rest of the industry. TYL outperforms 75.97% of its industry peers.
TYL has a better Return On Equity (8.25%) than 75.27% of its industry peers.
With a decent Return On Invested Capital value of 7.49%, TYL is doing good in the industry, outperforming 79.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TYL is significantly below the industry average of 12.21%.
The 3 year average ROIC (5.40%) for TYL is below the current ROIC(7.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 8.25% | ||
| ROIC | 7.49% |
ROA(3y)4.04%
ROA(5y)4.6%
ROE(3y)6.56%
ROE(5y)7.28%
ROIC(3y)5.4%
ROIC(5y)5.58%
1.3 Margins
The Profit Margin of TYL (13.23%) is better than 78.09% of its industry peers.
In the last couple of years the Profit Margin of TYL has declined.
TYL's Operating Margin of 14.69% is amongst the best of the industry. TYL outperforms 82.33% of its industry peers.
In the last couple of years the Operating Margin of TYL has remained more or less at the same level.
TYL's Gross Margin of 44.70% is on the low side compared to the rest of the industry. TYL is outperformed by 70.67% of its industry peers.
In the last couple of years the Gross Margin of TYL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.69% | ||
| PM (TTM) | 13.23% | ||
| GM | 44.7% |
OM growth 3Y2.19%
OM growth 5Y-0.68%
PM growth 3Y6.66%
PM growth 5Y-1.82%
GM growth 3Y-0.6%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TYL is destroying value.
TYL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TYL has more shares outstanding
TYL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.86 indicates that TYL is not in any danger for bankruptcy at the moment.
TYL has a better Altman-Z score (9.86) than 85.87% of its industry peers.
TYL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 9.86 |
ROIC/WACC0.69
WACC10.83%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TYL may have some problems paying its short term obligations.
With a Current ratio value of 0.94, TYL is not doing good in the industry: 77.39% of the companies in the same industry are doing better.
A Quick Ratio of 0.94 indicates that TYL may have some problems paying its short term obligations.
TYL has a worse Quick ratio (0.94) than 76.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.94% over the past year.
TYL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.50% yearly.
TYL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.96%.
TYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.50% yearly.
EPS 1Y (TTM)22.94%
EPS 3Y10.8%
EPS 5Y12.5%
EPS Q2Q%26.36%
Revenue 1Y (TTM)9.96%
Revenue growth 3Y10.32%
Revenue growth 5Y14.5%
Sales Q2Q%10.31%
3.2 Future
The Earnings Per Share is expected to grow by 16.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.71% on average over the next years. This is quite good.
EPS Next Y18.31%
EPS Next 2Y14.65%
EPS Next 3Y14.07%
EPS Next 5Y16.53%
Revenue Next Year9.13%
Revenue Next 2Y9.4%
Revenue Next 3Y9.5%
Revenue Next 5Y9.71%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.95, TYL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TYL.
TYL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 45.15, TYL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TYL.
When comparing the Price/Forward Earnings ratio of TYL to the average of the S&P500 Index (21.94), we can say TYL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.95 | ||
| Fwd PE | 45.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TYL is valued a bit cheaper than the industry average as 66.08% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TYL is valued a bit cheaper than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.2 | ||
| EV/EBITDA | 51.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TYL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TYL may justify a higher PE ratio.
TYL's earnings are expected to grow with 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.06
PEG (5Y)4.48
EPS Next 2Y14.65%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
No dividends for TYL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
566.82
-7.41 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.99%
Inst Owner Change3.3%
Ins Owners0.46%
Ins Owner Change2.07%
Market Cap24.44B
Analysts80
Price Target684.1 (20.69%)
Short Float %2.28%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.38%
Min EPS beat(2)-1.13%
Max EPS beat(2)7.9%
EPS beat(4)3
Avg EPS beat(4)3.08%
Min EPS beat(4)-1.13%
Max EPS beat(4)7.9%
EPS beat(8)7
Avg EPS beat(8)4.03%
EPS beat(12)10
Avg EPS beat(12)3.43%
EPS beat(16)13
Avg EPS beat(16)4.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)0.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.54%
Revenue beat(16)7
Avg Revenue beat(16)0.72%
PT rev (1m)-4.98%
PT rev (3m)0.31%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)1.73%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.95 | ||
| Fwd PE | 45.15 | ||
| P/S | 11.16 | ||
| P/FCF | 43.2 | ||
| P/OCF | 40.14 | ||
| P/B | 6.96 | ||
| P/tB | 313.77 | ||
| EV/EBITDA | 51.24 |
EPS(TTM)10.13
EY1.79%
EPS(NY)12.55
Fwd EY2.21%
FCF(TTM)13.12
FCFY2.31%
OCF(TTM)14.12
OCFY2.49%
SpS50.8
BVpS81.46
TBVpS1.81
PEG (NY)3.06
PEG (5Y)4.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 8.25% | ||
| ROCE | 8.86% | ||
| ROIC | 7.49% | ||
| ROICexc | 9.63% | ||
| ROICexgc | N/A | ||
| OM | 14.69% | ||
| PM (TTM) | 13.23% | ||
| GM | 44.7% | ||
| FCFM | 25.83% |
ROA(3y)4.04%
ROA(5y)4.6%
ROE(3y)6.56%
ROE(5y)7.28%
ROIC(3y)5.4%
ROIC(5y)5.58%
ROICexc(3y)6.06%
ROICexc(5y)6.77%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.39%
ROCE(5y)6.6%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y14.88%
ROICexc growth 5Y-4.33%
OM growth 3Y2.19%
OM growth 5Y-0.68%
PM growth 3Y6.66%
PM growth 5Y-1.82%
GM growth 3Y-0.6%
GM growth 5Y-1.65%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.93% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 138.49 | ||
| Cash Conversion | 129.32% | ||
| Profit Quality | 195.17% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 9.86 |
F-Score6
WACC10.83%
ROIC/WACC0.69
Cap/Depr(3y)30.99%
Cap/Depr(5y)33.77%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.76%
Profit Quality(3y)205.85%
Profit Quality(5y)196.2%
High Growth Momentum
Growth
EPS 1Y (TTM)22.94%
EPS 3Y10.8%
EPS 5Y12.5%
EPS Q2Q%26.36%
EPS Next Y18.31%
EPS Next 2Y14.65%
EPS Next 3Y14.07%
EPS Next 5Y16.53%
Revenue 1Y (TTM)9.96%
Revenue growth 3Y10.32%
Revenue growth 5Y14.5%
Sales Q2Q%10.31%
Revenue Next Year9.13%
Revenue Next 2Y9.4%
Revenue Next 3Y9.5%
Revenue Next 5Y9.71%
EBIT growth 1Y30.81%
EBIT growth 3Y12.74%
EBIT growth 5Y13.72%
EBIT Next Year27.92%
EBIT Next 3Y18.93%
EBIT Next 5Y11.38%
FCF growth 1Y59.88%
FCF growth 3Y22.04%
FCF growth 5Y21.99%
OCF growth 1Y51.25%
OCF growth 3Y18.88%
OCF growth 5Y19.65%