TYLER TECHNOLOGIES INC (TYL)
US9022521051 - Common Stock
TYL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. TYL has only an average score on both its financial health and profitability. TYL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years TYL has been profitable.
TYL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.74%, TYL is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
The Return On Equity of TYL (7.23%) is better than 74.91% of its industry peers.
TYL's Return On Invested Capital of 5.99% is fine compared to the rest of the industry. TYL outperforms 79.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TYL is significantly below the industry average of 11.54%.
The last Return On Invested Capital (5.99%) for TYL is above the 3 year average (4.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 7.23% | ||
| ROIC | 5.99% |
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 (11.39%) than 79.93% of its industry peers.
TYL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 13.38%, TYL belongs to the best of the industry, outperforming 82.80% of the companies in the same industry.
In the last couple of years the Operating Margin of TYL has declined.
Looking at the Gross Margin, with a value of 43.89%, TYL is doing worse than 73.12% of the companies in the same industry.
TYL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.38% | ||
| PM (TTM) | 11.39% | ||
| GM | 43.89% |
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
TYL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
TYL has an Altman-Z score of 10.07. This indicates that TYL is financially healthy and has little risk of bankruptcy at the moment.
TYL's Altman-Z score of 10.07 is amongst the best of the industry. TYL outperforms 80.65% of its industry peers.
TYL has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
TYL's Debt to FCF ratio of 1.21 is fine compared to the rest of the industry. TYL outperforms 71.68% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that TYL is not too dependend on debt financing.
The Debt to Equity ratio of TYL (0.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 10.07 |
ROIC/WACC0.51
WACC11.81%
2.3 Liquidity
A Current Ratio of 1.21 indicates that TYL should not have too much problems paying its short term obligations.
TYL has a worse Current ratio (1.21) than 64.52% of its industry peers.
TYL has a Quick Ratio of 1.21. This is a normal value and indicates that TYL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TYL (1.21) is worse than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.02% over the past year.
The Earnings Per Share has been growing by 10.20% on average over the past years. This is quite good.
TYL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.04%.
TYL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.85% yearly.
EPS 1Y (TTM)19.02%
EPS 3Y12.22%
EPS 5Y10.2%
EPS Q2Q%17.76%
Revenue 1Y (TTM)8.04%
Revenue growth 3Y20.46%
Revenue growth 5Y15.85%
Sales Q2Q%9.84%
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 16.47% yearly.
TYL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.39% yearly.
EPS Next Y23.76%
EPS Next 2Y18.44%
EPS Next 3Y17.32%
EPS Next 5Y16.47%
Revenue Next Year9.27%
Revenue Next 2Y9.84%
Revenue Next 3Y10.12%
Revenue Next 5Y9.39%
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
The Price/Earnings ratio is 67.60, which means the current valuation is very expensive for TYL.
The rest of the industry has a similar Price/Earnings ratio as TYL.
Compared to an average S&P500 Price/Earnings ratio of 29.20, TYL is valued quite expensively.
With a Price/Forward Earnings ratio of 55.67, TYL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TYL.
TYL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.6 | ||
| Fwd PE | 55.67 |
4.2 Price Multiples
TYL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TYL is cheaper than 65.59% 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 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.87 | ||
| EV/EBITDA | 60.04 |
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.
TYL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TYL's earnings are expected to grow with 17.32% in the coming years.
PEG (NY)2.85
PEG (5Y)6.63
EPS Next 2Y18.44%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
TYL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TYLER TECHNOLOGIES INC
NYSE:TYL (11/22/2024, 8:10:14 PM)
After market: 609.09 0 (0%)609.09
+11.88 (+1.99%)
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 Cap26.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.6 | ||
| Fwd PE | 55.67 | ||
| 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)2.85
PEG (5Y)6.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 7.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.38% | ||
| PM (TTM) | 11.39% | ||
| GM | 43.89% | ||
| 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 | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)19.02%
EPS 3Y12.22%
EPS 5Y
EPS Q2Q%
EPS Next Y23.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.04%
Revenue growth 3Y20.46%
Revenue growth 5Y
Sales 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