TYLER TECHNOLOGIES INC (TYL) Stock Fundamental Analysis
USA - NYSE:TYL - US9022521051 - Common Stock
506.46 USD
-11.11 (-2.15%)
506.46 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TYL. TYL was compared to 281 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 could make TYL a good candidate 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.
Each year in the past 5 years TYL had a positive operating cash flow.
1.2 Ratios
TYL has a better Return On Assets (5.65%) than 73.67% of its industry peers.
TYL has a better Return On Equity (8.44%) than 72.95% of its industry peers.
The Return On Invested Capital of TYL (7.64%) is better than 77.94% of its industry peers.
TYL had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 11.98%.
The last Return On Invested Capital (7.64%) for TYL is above the 3 year average (5.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 8.44% | ||
| ROIC | 7.64% |
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
TYL has a Profit Margin of 13.66%. This is in the better half of the industry: TYL outperforms 76.51% of its industry peers.
In the last couple of years the Profit Margin of TYL has declined.
TYL has a better Operating Margin (15.11%) than 81.49% of its industry peers.
TYL's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 45.18%, TYL is not doing good in the industry: 71.53% of the companies in the same industry are doing better.
TYL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.11% | ||
| PM (TTM) | 13.66% | ||
| GM | 45.18% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TYL is destroying value.
Compared to 1 year ago, TYL has more shares outstanding
Compared to 5 years ago, TYL has more shares outstanding
The debt/assets ratio for TYL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.66 indicates that TYL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TYL (8.66) is better than 80.78% of its industry peers.
There is no outstanding debt for TYL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 8.66 |
ROIC/WACC0.69
WACC11.13%
2.3 Liquidity
TYL has a Current Ratio of 1.03. This is a normal value and indicates that TYL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TYL (1.03) is worse than 70.46% of its industry peers.
A Quick Ratio of 1.03 indicates that TYL should not have too much problems paying its short term obligations.
The Quick ratio of TYL (1.03) is worse than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.29% over the past year.
The Earnings Per Share has been growing by 12.50% on average over the past years. This is quite good.
Looking at the last year, TYL shows a quite strong growth in Revenue. The Revenue has grown by 10.69% in the last year.
Measured over the past years, TYL shows a quite strong growth in Revenue. The Revenue has been growing by 14.50% on average per year.
EPS 1Y (TTM)23.29%
EPS 3Y10.8%
EPS 5Y12.5%
EPS Q2Q%21.25%
Revenue 1Y (TTM)10.69%
Revenue growth 3Y10.32%
Revenue growth 5Y14.5%
Sales Q2Q%10.19%
3.2 Future
The Earnings Per Share is expected to grow by 15.65% on average over the next years. This is quite good.
Based on estimates for the next years, TYL will show a quite strong growth in Revenue. The Revenue will grow by 9.31% on average per year.
EPS Next Y20.15%
EPS Next 2Y15.39%
EPS Next 3Y14.85%
EPS Next 5Y15.65%
Revenue Next Year9.73%
Revenue Next 2Y9.53%
Revenue Next 3Y9.74%
Revenue Next 5Y9.31%
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
A Price/Earnings ratio of 47.60 indicates a quite expensive valuation of TYL.
Compared to the rest of the industry, the Price/Earnings ratio of TYL is on the same level as its industry peers.
TYL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.91.
With a Price/Forward Earnings ratio of 39.83, TYL can be considered very expensive at the moment.
TYL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.30. TYL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.6 | ||
| Fwd PE | 39.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TYL indicates a somewhat cheap valuation: TYL is cheaper than 65.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TYL is valued a bit cheaper than the industry average as 66.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.21 | ||
| EV/EBITDA | 46.54 |
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 14.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)3.81
EPS Next 2Y15.39%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
TYL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
506.46
-11.11 (-2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.65%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change-0.8%
Market Cap21.91B
Analysts79.17
Price Target685.22 (35.3%)
Short Float %2.79%
Short Ratio3.51
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)2
Avg EPS beat(2)5.87%
Min EPS beat(2)3.84%
Max EPS beat(2)7.9%
EPS beat(4)3
Avg EPS beat(4)3.27%
Min EPS beat(4)-1.13%
Max EPS beat(4)7.9%
EPS beat(8)7
Avg EPS beat(8)3.84%
EPS beat(12)10
Avg EPS beat(12)3.57%
EPS beat(16)13
Avg EPS beat(16)4.25%
Revenue beat(2)2
Avg Revenue beat(2)0.44%
Min Revenue beat(2)0.39%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)0.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)4
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)0.3%
PT rev (1m)0.02%
PT rev (3m)0.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)0%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.6 | ||
| Fwd PE | 39.83 | ||
| P/S | 9.76 | ||
| P/FCF | 36.21 | ||
| P/OCF | 34.08 | ||
| P/B | 6.03 | ||
| P/tB | 97.72 | ||
| EV/EBITDA | 46.54 |
EPS(TTM)10.64
EY2.1%
EPS(NY)12.72
Fwd EY2.51%
FCF(TTM)13.99
FCFY2.76%
OCF(TTM)14.86
OCFY2.93%
SpS51.91
BVpS84.02
TBVpS5.18
PEG (NY)2.36
PEG (5Y)3.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 8.44% | ||
| ROCE | 9.04% | ||
| ROIC | 7.64% | ||
| ROICexc | 10.02% | ||
| ROICexgc | N/A | ||
| OM | 15.11% | ||
| PM (TTM) | 13.66% | ||
| GM | 45.18% | ||
| FCFM | 26.95% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.37% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 158.99 | ||
| Cash Conversion | 136.06% | ||
| Profit Quality | 197.25% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 8.66 |
F-Score6
WACC11.13%
ROIC/WACC0.69
Cap/Depr(3y)33.58%
Cap/Depr(5y)35.33%
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)23.29%
EPS 3Y10.8%
EPS 5Y12.5%
EPS Q2Q%21.25%
EPS Next Y20.15%
EPS Next 2Y15.39%
EPS Next 3Y14.85%
EPS Next 5Y15.65%
Revenue 1Y (TTM)10.69%
Revenue growth 3Y10.32%
Revenue growth 5Y14.5%
Sales Q2Q%10.19%
Revenue Next Year9.73%
Revenue Next 2Y9.53%
Revenue Next 3Y9.74%
Revenue Next 5Y9.31%
EBIT growth 1Y29.45%
EBIT growth 3Y12.74%
EBIT growth 5Y13.72%
EBIT Next Year28.99%
EBIT Next 3Y19.26%
EBIT Next 5Y11.38%
FCF growth 1Y132.12%
FCF growth 3Y22.04%
FCF growth 5Y21.99%
OCF growth 1Y109.6%
OCF growth 3Y18.88%
OCF growth 5Y19.65%