TYLER TECHNOLOGIES INC (TYL) Stock Fundamental Analysis
NYSE:TYL - New York Stock Exchange, Inc. - US9022521051 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TYL. TYL was compared to 284 industry peers in the Software industry. TYL has only an average score on both its financial health and profitability. TYL is valued quite expensive, but it does show an excellent growth. With these ratings, TYL could be worth investigating further 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
With a decent Return On Assets value of 5.58%, TYL is doing good in the industry, outperforming 76.41% of the companies in the same industry.
TYL has a better Return On Equity (8.25%) than 75.70% of its industry peers.
The Return On Invested Capital of TYL (7.49%) is better than 80.28% 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 12.30%.
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
TYL has a Profit Margin of 13.23%. This is in the better half of the industry: TYL outperforms 78.87% of its industry peers.
TYL's Profit Margin has declined in the last couple of years.
TYL has a better Operating Margin (14.69%) than 82.75% of its industry peers.
In the last couple of years the Operating Margin of TYL has remained more or less at the same level.
With a Gross Margin value of 44.70%, TYL is not doing good in the industry: 70.42% of the companies in the same industry are doing better.
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.
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
TYL has an Altman-Z score of 10.18. This indicates that TYL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TYL (10.18) is better than 85.92% 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 | 1.06 | ||
| Altman-Z | 10.18 |
ROIC/WACC0.85
WACC8.84%
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 76.41% of its industry peers.
A Quick Ratio of 0.94 indicates that TYL may have some problems paying its short term obligations.
TYL has a Quick ratio of 0.94. This is in the lower half of the industry: TYL underperforms 75.70% of its industry peers.
| 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 22.94%, which is quite impressive.
TYL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.50% yearly.
The Revenue has grown by 9.96% in the past year. This is quite good.
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 15.80% on average over the next years. This is quite good.
TYL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.25% yearly.
EPS Next Y18.31%
EPS Next 2Y14.65%
EPS Next 3Y14.07%
EPS Next 5Y15.8%
Revenue Next Year9.13%
Revenue Next 2Y9.4%
Revenue Next 3Y9.5%
Revenue Next 5Y9.25%
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
The Price/Earnings ratio is 57.23, which means the current valuation is very expensive for TYL.
The rest of the industry has a similar Price/Earnings ratio as TYL.
TYL is valuated expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 46.18, the valuation of TYL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TYL.
TYL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.23 | ||
| Fwd PE | 46.18 |
4.2 Price Multiples
TYL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TYL is cheaper than 64.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TYL indicates a somewhat cheap valuation: TYL is cheaper than 64.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.18 | ||
| EV/EBITDA | 53.16 |
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.
A more expensive valuation may be justified as TYL's earnings are expected to grow with 14.07% in the coming years.
PEG (NY)3.13
PEG (5Y)4.58
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 |
579.72
-8.02 (-1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.02%
Inst Owner Change3.3%
Ins Owners0.4%
Ins Owner Change1.75%
Market Cap25.00B
Analysts80
Price Target684.1 (18.01%)
Short Float %2.58%
Short Ratio3.76
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)-3.74%
PT rev (3m)-4.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)1.73%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.23 | ||
| Fwd PE | 46.18 | ||
| P/S | 11.41 | ||
| P/FCF | 44.18 | ||
| P/OCF | 41.05 | ||
| P/B | 7.12 | ||
| P/tB | 320.91 | ||
| EV/EBITDA | 53.16 |
EPS(TTM)10.13
EY1.75%
EPS(NY)12.55
Fwd EY2.17%
FCF(TTM)13.12
FCFY2.26%
OCF(TTM)14.12
OCFY2.44%
SpS50.8
BVpS81.46
TBVpS1.81
PEG (NY)3.13
PEG (5Y)4.58
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 | 10.18 |
F-Score6
WACC8.84%
ROIC/WACC0.85
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 5Y15.8%
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 5Y9.25%
EBIT growth 1Y30.81%
EBIT growth 3Y12.74%
EBIT growth 5Y13.72%
EBIT Next Year28.99%
EBIT Next 3Y18.42%
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%