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 284 industry peers in the Software industry. TYL has only an average score on both its financial health and profitability. TYL is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
TYL had positive earnings in the past year.
TYL had a positive operating cash flow in the past year.
Each year in the past 5 years TYL has been profitable.
In the past 5 years TYL always reported a positive cash flow from operatings.
1.2 Ratios
TYL has a better Return On Assets (5.08%) than 76.45% of its industry peers.
TYL has a Return On Equity of 7.76%. This is in the better half of the industry: TYL outperforms 74.28% of its industry peers.
TYL's Return On Invested Capital of 6.15% is fine compared to the rest of the industry. TYL outperforms 79.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TYL is significantly below the industry average of 11.92%.
The 3 year average ROIC (5.40%) for TYL is below the current ROIC(6.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 7.76% | ||
| ROIC | 6.15% |
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 (12.30%) than 78.99% of its industry peers.
In the last couple of years the Profit Margin of TYL has declined.
TYL has a better Operating Margin (14.01%) than 82.61% of its industry peers.
In the last couple of years the Operating Margin of TYL has remained more or less at the same level.
TYL has a Gross Margin of 43.77%. This is in the lower half of the industry: TYL underperforms 75.72% of its industry peers.
In the last couple of years the Gross Margin of TYL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.01% | ||
| PM (TTM) | 12.3% | ||
| GM | 43.77% |
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.
The number of shares outstanding for TYL has been increased compared to 1 year ago.
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
TYL has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.04, TYL is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
TYL has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
TYL has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: TYL outperforms 44.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.04 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC14.05%
2.3 Liquidity
A Current Ratio of 1.35 indicates that TYL should not have too much problems paying its short term obligations.
The Current ratio of TYL (1.35) is comparable to the rest of the industry.
TYL has a Quick Ratio of 1.35. This is a normal value and indicates that TYL is financially healthy and should not expect problems in meeting its short term obligations.
TYL's Quick ratio of 1.35 is in line compared to the rest of the industry. TYL outperforms 42.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
TYL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.44%, which is quite impressive.
The Earnings Per Share has been growing by 12.50% on average over the past years. This is quite good.
Looking at the last year, TYL shows a quite strong growth in Revenue. The Revenue has grown by 9.53% in the last year.
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)22.44%
EPS 3Y10.8%
EPS 5Y12.5%
EPS Q2Q%28.57%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y10.32%
Revenue growth 5Y14.5%
Sales Q2Q%12.52%
3.2 Future
The Earnings Per Share is expected to grow by 16.67% 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 9.04% on average per year.
EPS Next Y16.34%
EPS Next 2Y14.41%
EPS Next 3Y14.06%
EPS Next 5Y16.67%
Revenue Next Year8.8%
Revenue Next 2Y9.3%
Revenue Next 3Y9.32%
Revenue Next 5Y9.04%
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
A Price/Earnings ratio of 65.98 indicates a quite expensive valuation of TYL.
TYL's Price/Earnings is on the same level as the industry average.
TYL is valuated expensively when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 56.71, the valuation of TYL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TYL.
TYL is valuated expensively when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.98 | ||
| Fwd PE | 56.71 |
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 65.58% of the companies listed in the same industry.
TYL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TYL is cheaper than 64.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.93 | ||
| EV/EBITDA | 60.44 |
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 14.06% in the coming years.
PEG (NY)4.04
PEG (5Y)5.28
EPS Next 2Y14.41%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
No dividends for TYL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
630.09
-14.59 (-2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change4.48%
Ins Owners0.46%
Ins Owner Change0.04%
Market Cap26.97B
Analysts80
Price Target718.79 (14.08%)
Short Float %2.04%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)0.68%
Min EPS beat(2)-1.13%
Max EPS beat(2)2.49%
EPS beat(4)3
Avg EPS beat(4)2.86%
Min EPS beat(4)-1.13%
Max EPS beat(4)7.03%
EPS beat(8)7
Avg EPS beat(8)3.41%
EPS beat(12)10
Avg EPS beat(12)3.63%
EPS beat(16)13
Avg EPS beat(16)4.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.72%
Revenue beat(12)4
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)0.75%
PT rev (1m)0%
PT rev (3m)9.6%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.98 | ||
| Fwd PE | 56.71 | ||
| P/S | 12.61 | ||
| P/FCF | 46.93 | ||
| P/OCF | 43.17 | ||
| P/B | 7.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.44 |
EPS(TTM)9.55
EY1.52%
EPS(NY)11.11
Fwd EY1.76%
FCF(TTM)13.43
FCFY2.13%
OCF(TTM)14.59
OCFY2.32%
SpS49.95
BVpS79.17
TBVpS-1.2
PEG (NY)4.04
PEG (5Y)5.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 7.76% | ||
| ROCE | 7.28% | ||
| ROIC | 6.15% | ||
| ROICexc | 7.57% | ||
| ROICexgc | N/A | ||
| OM | 14.01% | ||
| PM (TTM) | 12.3% | ||
| GM | 43.77% | ||
| FCFM | 26.88% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.04 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 34.81% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.01% | ||
| Profit Quality | 218.49% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score6
WACC14.05%
ROIC/WACC0.44
Cap/Depr(3y)33.58%
Cap/Depr(5y)35.33%
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)22.44%
EPS 3Y10.8%
EPS 5Y12.5%
EPS Q2Q%28.57%
EPS Next Y16.34%
EPS Next 2Y14.41%
EPS Next 3Y14.06%
EPS Next 5Y16.67%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y10.32%
Revenue growth 5Y14.5%
Sales Q2Q%12.52%
Revenue Next Year8.8%
Revenue Next 2Y9.3%
Revenue Next 3Y9.32%
Revenue Next 5Y9.04%
EBIT growth 1Y32.92%
EBIT growth 3Y12.74%
EBIT growth 5Y13.72%
EBIT Next Year26.96%
EBIT Next 3Y8.87%
EBIT Next 5Y11.38%
FCF growth 1Y75.52%
FCF growth 3Y22.04%
FCF growth 5Y21.99%
OCF growth 1Y64.19%
OCF growth 3Y18.88%
OCF growth 5Y19.65%