TYLER TECHNOLOGIES INC (TYL) Stock Fundamental Analysis
NYSE:TYL - New York Stock Exchange, Inc. - US9022521051 - Common Stock - Currency: USD
Overall TYL gets a fundamental rating of 5 out of 10. We evaluated TYL against 282 industry peers in the Software industry. TYL has an average financial health and profitability rating. 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
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.
In the past 5 years TYL always reported a positive cash flow from operatings.
1.2 Ratios
TYL has a Return On Assets of 5.58%. This is in the better half of the industry: TYL outperforms 76.33% of its industry peers.
TYL has a Return On Equity of 8.25%. This is in the better half of the industry: TYL outperforms 75.62% of its industry peers.
TYL's Return On Invested Capital of 7.49% is amongst the best of the industry. TYL outperforms 80.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TYL is significantly below the industry average of 12.26%.
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
The Profit Margin of TYL (13.23%) is better than 78.80% of its industry peers.
TYL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.69%, TYL belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
TYL's Operating Margin has been stable in the last couple of years.
TYL's Gross Margin of 44.70% is on the low side compared to the rest of the industry. TYL is outperformed by 71.38% of its industry peers.
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
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
TYL has more shares outstanding than it did 5 years ago.
TYL has a better debt/assets ratio than last year.
2.2 Solvency
TYL has an Altman-Z score of 10.22. This indicates that TYL is financially healthy and has little risk of bankruptcy at the moment.
TYL has a better Altman-Z score (10.22) than 84.10% 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 | 10.22 |
ROIC/WACC0.69
WACC10.85%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TYL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, TYL is doing worse than 76.33% of the companies in the same industry.
TYL has a Quick 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.
The Quick ratio of TYL (0.94) is worse than 75.62% 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.
Measured over the past years, TYL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.50% on average per year.
TYL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.96%.
The Revenue has been growing by 14.50% on average over the past years. This is quite good.
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.
Based on estimates for the next years, TYL will show a quite strong growth in Revenue. The Revenue will grow by 9.25% on average per year.
EPS Next Y18.31%
EPS Next 2Y14.65%
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
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
The Price/Earnings ratio is 58.25, which means the current valuation is very expensive for TYL.
TYL's Price/Earnings is on the same level as the industry average.
TYL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 47.00, the valuation of TYL can be described as expensive.
TYL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.89. TYL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.25 | ||
| Fwd PE | 47 |
4.2 Price Multiples
TYL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TYL is cheaper than 64.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TYL is valued a bit cheaper than the industry average as 65.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.97 | ||
| EV/EBITDA | 53.37 |
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 14.07% in the coming years.
PEG (NY)3.18
PEG (5Y)4.66
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 |
590.04
+6.96 (+1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.02%
Inst Owner Change-45.25%
Ins Owners0.4%
Ins Owner Change0.96%
Market Cap25.44B
Analysts79.17
Price Target679.86 (15.22%)
Short Float %2.51%
Short Ratio3.67
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%
EPS NY rev (3m)1.63%
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 | 58.25 | ||
| Fwd PE | 47 | ||
| P/S | 11.61 | ||
| P/FCF | 44.97 | ||
| P/OCF | 41.78 | ||
| P/B | 7.24 | ||
| P/tB | 326.63 | ||
| EV/EBITDA | 53.37 |
EPS(TTM)10.13
EY1.72%
EPS(NY)12.55
Fwd EY2.13%
FCF(TTM)13.12
FCFY2.22%
OCF(TTM)14.12
OCFY2.39%
SpS50.8
BVpS81.46
TBVpS1.81
PEG (NY)3.18
PEG (5Y)4.66
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 | 10.22 |
F-Score6
WACC10.85%
ROIC/WACC0.69
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 2Y9.43%
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%