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 282 industry peers in the Software industry. TYL has an average financial health and profitability rating. 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 Return On Invested Capital of 7.49%. This is amongst the best in the industry. TYL outperforms 80.14% 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 12.26%.
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 78.72% of its industry peers.
In the last couple of years the Profit Margin of TYL has declined.
TYL has a better Operating Margin (14.69%) than 82.62% of its industry peers.
TYL's Operating Margin has been stable in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TYL 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 10.21 indicates that TYL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.21, TYL belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
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 | 10.21 |
ROIC/WACC0.7
WACC10.74%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TYL may have some problems paying its short term obligations.
TYL has a worse Current ratio (0.94) 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.
Looking at the Quick ratio, with a value of 0.94, TYL is doing worse than 75.53% of the companies in the same industry.
| 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.
TYL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.96%.
Measured over the past years, TYL shows a quite strong growth in Revenue. The Revenue has been growing by 14.50% on average per year.
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
Based on estimates for the next years, TYL will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.80% on average per year.
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 2Y9.43%
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
Based on the Price/Earnings ratio of 58.21, the valuation of TYL can be described as expensive.
TYL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. TYL is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.98 indicates a quite expensive valuation of TYL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TYL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TYL to the average of the S&P500 Index (21.74), we can say TYL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.21 | ||
| Fwd PE | 46.98 |
4.2 Price Multiples
TYL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TYL is cheaper than 64.54% 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 64.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.94 | ||
| EV/EBITDA | 53.34 |
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 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.18
PEG (5Y)4.66
EPS Next 2Y14.65%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
TYL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
589.69
-0.35 (-0.06%)
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 Cap25.43B
Analysts79.17
Price Target679.86 (15.29%)
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 | 58.21 | ||
| Fwd PE | 46.98 | ||
| P/S | 11.61 | ||
| P/FCF | 44.94 | ||
| P/OCF | 41.76 | ||
| P/B | 7.24 | ||
| P/tB | 326.43 | ||
| EV/EBITDA | 53.34 |
EPS(TTM)10.13
EY1.72%
EPS(NY)12.55
Fwd EY2.13%
FCF(TTM)13.12
FCFY2.23%
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 | 10.21 |
F-Score6
WACC10.74%
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 Y18.31%
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%