TYLER TECHNOLOGIES INC (TYL) Stock Fundamental Analysis
NYSE:TYL - New York Stock Exchange, Inc. - US9022521051 - Common Stock - Currency: USD
Taking everything into account, TYL scores 5 out of 10 in our fundamental rating. TYL was compared to 282 industry peers in the Software industry. TYL has only an average score on both its financial health and profitability. TYL is valued quite expensively, but it does show have an excellent growth rating. This makes TYL very considerable for growth investing!
1. Profitability
1.1 Basic Checks
TYL had positive earnings in the past year.
In the past year TYL had a positive cash flow from operations.
TYL had positive earnings in each of the past 5 years.
Each year in the past 5 years TYL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TYL (5.58%) is better than 76.24% of its industry peers.
TYL has a better Return On Equity (8.25%) than 75.53% of its industry peers.
TYL has a better Return On Invested Capital (7.49%) than 79.79% 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 12.17%.
The last Return On Invested Capital (7.49%) for TYL is above the 3 year average (5.40%), which is a sign of increasing profitability.
| 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 better Profit Margin (13.23%) than 78.72% of its industry peers.
TYL's Profit Margin has declined in the last couple of years.
TYL has a Operating Margin of 14.69%. This is amongst the best in the industry. TYL outperforms 82.62% 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: 71.28% 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
TYL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TYL has an improved debt to assets ratio.
2.2 Solvency
TYL has an Altman-Z score of 9.78. This indicates that TYL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TYL (9.78) is better than 82.98% 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 | 9.78 |
ROIC/WACC0.7
WACC10.67%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TYL may have some problems paying its short term obligations.
The Current ratio of TYL (0.94) is worse than 76.24% 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 worse Quick ratio (0.94) than 75.53% 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.
Looking at the last year, TYL shows a quite strong growth in Revenue. The Revenue has grown by 9.96% in the last year.
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
TYL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.80% yearly.
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 Y18.26%
EPS Next 2Y14.63%
EPS Next 3Y14.07%
EPS Next 5Y15.8%
Revenue Next Year9.13%
Revenue Next 2Y9.43%
Revenue Next 3Y9.5%
Revenue Next 5Y9.25%
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.
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
TYL is valuated quite expensively with a Price/Earnings ratio of 55.71.
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 27.50.
TYL is valuated quite expensively with a Price/Forward Earnings ratio of 44.97.
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 (36.44), we can say TYL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.71 | ||
| Fwd PE | 44.97 |
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 65.25% of the companies listed in the same industry.
65.60% of the companies in the same industry are more expensive than TYL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.01 | ||
| EV/EBITDA | 50.73 |
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)3.05
PEG (5Y)4.46
EPS Next 2Y14.63%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
No dividends for TYL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
564.36
+3.1 (+0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.02%
Inst Owner Change-0.24%
Ins Owners0.4%
Ins Owner Change0.96%
Market Cap24.34B
Analysts79.17
Price Target679.86 (20.47%)
Short Float %3.08%
Short Ratio4.9
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)-0.62%
PT rev (3m)-5.57%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.71 | ||
| Fwd PE | 44.97 | ||
| P/S | 11.11 | ||
| P/FCF | 43.01 | ||
| P/OCF | 39.96 | ||
| P/B | 6.93 | ||
| P/tB | 312.41 | ||
| EV/EBITDA | 50.73 |
EPS(TTM)10.13
EY1.79%
EPS(NY)12.55
Fwd EY2.22%
FCF(TTM)13.12
FCFY2.33%
OCF(TTM)14.12
OCFY2.5%
SpS50.8
BVpS81.46
TBVpS1.81
PEG (NY)3.05
PEG (5Y)4.46
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 | 9.78 |
F-Score6
WACC10.67%
ROIC/WACC0.7
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 Y18.26%
EPS Next 2Y14.63%
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 2Y9.43%
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%