TYLER TECHNOLOGIES INC (TYL)
US9022521051 - Common Stock
We assign a fundamental rating of 5 out of 10 to TYL. TYL was compared to 276 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.
In the past 5 years TYL has always been profitable.
TYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TYL has a better Return On Assets (3.55%) than 77.74% of its industry peers.
TYL's Return On Equity of 5.65% is fine compared to the rest of the industry. TYL outperforms 77.37% of its industry peers.
TYL's Return On Invested Capital of 5.25% is amongst the best of the industry. TYL outperforms 80.66% of its industry peers.
TYL had an Average Return On Invested Capital over the past 3 years of 4.92%. This is significantly below the industry average of 10.21%.
The last Return On Invested Capital (5.25%) for TYL is above the 3 year average (4.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.65% | ||
| ROIC | 5.25% |
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
With a decent Profit Margin value of 8.50%, TYL is doing good in the industry, outperforming 79.93% of the companies in the same industry.
In the last couple of years the Profit Margin of TYL has declined.
TYL has a Operating Margin of 11.55%. This is amongst the best in the industry. TYL outperforms 83.94% of its industry peers.
TYL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 44.12%, TYL is not doing good in the industry: 71.17% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TYL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.55% | ||
| PM (TTM) | 8.5% | ||
| GM | 44.12% |
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.
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 7.77 indicates that TYL is not in any danger for bankruptcy at the moment.
TYL has a Altman-Z score of 7.77. This is amongst the best in the industry. TYL outperforms 81.75% of its industry peers.
The Debt to FCF ratio of TYL is 1.97, which is an excellent value as it means it would take TYL, only 1.97 years of fcf income to pay off all of its debts.
TYL has a Debt to FCF ratio of 1.97. This is in the better half of the industry: TYL outperforms 69.71% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that TYL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.20, TYL perfoms like the industry average, outperforming 46.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.77 |
ROIC/WACC0.54
WACC9.79%
2.3 Liquidity
A Current Ratio of 0.86 indicates that TYL may have some problems paying its short term obligations.
TYL's Current ratio of 0.86 is on the low side compared to the rest of the industry. TYL is outperformed by 81.75% of its industry peers.
TYL has a Quick Ratio of 0.86. 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. TYL is outperformed by 80.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.00% over the past year.
Measured over the past years, TYL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.20% on average per year.
TYL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.49%.
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)4%
EPS 3Y12.22%
EPS 5Y10.2%
EPS growth Q2Q13.86%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y20.46%
Revenue growth 5Y15.85%
Revenue growth Q2Q6.35%
3.2 Future
TYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.76% yearly.
The Revenue is expected to grow by 8.76% on average over the next years. This is quite good.
EPS Next Y16.82%
EPS Next 2Y15.27%
EPS Next 3Y15.06%
EPS Next 5Y15.76%
Revenue Next Year8.25%
Revenue Next 2Y8.94%
Revenue Next 3Y9.12%
Revenue Next 5Y8.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 59.07 indicates a quite expensive valuation of TYL.
Based on the Price/Earnings ratio, TYL is valued a bit cheaper than 62.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.84. TYL is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 50.56, 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 21.35. TYL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.07 | ||
| Fwd PE | 50.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TYL is valued a bit cheaper than the industry average as 68.98% of the companies are valued more expensively.
TYL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.72 | ||
| EV/EBITDA | 52.75 |
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 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.51
PEG (5Y)5.79
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 (4/26/2024, 7:21:17 PM)
After market: 460.74 0 (0%)460.74
+2.67 (+0.58%)
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 Cap19.55B
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)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.07 | ||
| Fwd PE | 50.56 | ||
| 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)3.51
PEG (5Y)5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.55% | ||
| PM (TTM) | 8.5% | ||
| GM | 44.12% | ||
| 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 Turnover0.42
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 | 0.86 | ||
| Quick Ratio | 0.86 | ||
| 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)4%
EPS 3Y12.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.49%
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