TYLER TECHNOLOGIES INC (TYL)

US9022521051 - Common Stock

423.74  +3.14 (+0.75%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TYL. TYL was compared to 279 industry peers in the Software industry. TYL has only an average score on both its financial health and profitability. TYL has a decent growth rate and is not valued too expensively.



6

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

The Return On Assets of TYL (3.55%) is better than 79.14% of its industry peers.
Looking at the Return On Equity, with a value of 5.65%, TYL is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
The Return On Invested Capital of TYL (5.25%) is better than 80.22% 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 10.09%.
The 3 year average ROIC (4.92%) for TYL is below the current ROIC(5.25%), indicating increased profibility in the last year.
Industry RankSector 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

TYL has a better Profit Margin (8.50%) than 81.30% of its industry peers.
TYL's Profit Margin has declined in the last couple of years.
TYL has a Operating Margin of 11.55%. This is amongst the best in the industry. TYL outperforms 83.09% 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: 72.30% of the companies in the same industry are doing better.
TYL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

4

2. Health

2.1 Basic Checks

TYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TYL has more shares outstanding
The number of shares outstanding for TYL has been increased compared to 5 years ago.
The debt/assets ratio for TYL has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 7.16 indicates that TYL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.16, TYL is doing good in the industry, outperforming 78.06% of the companies in the same industry.
TYL has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.97, TYL is in the better half of the industry, outperforming 71.94% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that TYL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, TYL is in line with its industry, outperforming 45.32% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 1.97
Altman-Z 7.16
ROIC/WACC0.57
WACC9.25%

2.3 Liquidity

TYL has a Current 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 has a worse Current ratio (0.86) than 83.45% of its industry peers.
A Quick Ratio of 0.86 indicates that TYL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, TYL is doing worse than 82.01% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86

6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.00% over the past year.
The Earnings Per Share has been growing by 10.20% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.49% in the past year.
The Revenue has been growing by 15.85% on average over the past years. This is quite good.
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

The Earnings Per Share is expected to grow by 15.76% 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 8.76% on average per year.
EPS Next Y16.81%
EPS Next 2Y15.27%
EPS Next 3Y15.06%
EPS Next 5Y15.76%
Revenue Next Year8.3%
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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 54.33, TYL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TYL is valued a bit cheaper than 66.19% of the companies in the same industry.
TYL is valuated expensively when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
TYL is valuated quite expensively with a Price/Forward Earnings ratio of 46.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TYL indicates a somewhat cheap valuation: TYL is cheaper than 60.79% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TYL to the average of the S&P500 Index (22.74), we can say TYL is valued expensively.
Industry RankSector Rank
PE 54.33
Fwd PE 46.51

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TYL is valued a bit cheaper than the industry average as 71.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TYL is valued a bit cheaper than 62.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 54.72
EV/EBITDA 48.08

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.
A more expensive valuation may be justified as TYL's earnings are expected to grow with 15.06% in the coming years.
PEG (NY)3.23
PEG (5Y)5.33
EPS Next 2Y15.27%
EPS Next 3Y15.06%

0

5. Dividend

5.1 Amount

No dividends for TYL!.
Industry RankSector Rank
Dividend Yield N/A

TYLER TECHNOLOGIES INC

NYSE:TYL (3/28/2024, 10:38:00 AM)

423.74

+3.14 (+0.75%)

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 Cap17.92B
Analysts
Price Target
Dividend
Industry RankSector 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)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 54.33
Fwd PE 46.51
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)3.23
PEG (5Y)5.33
Profitability
Industry RankSector 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 RankSector 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 Y16.81%
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