Tyler Technologies (NYSE:TYL) - Share price, News & Analysis

Q: What is the Fair Price of TYL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TYL ($414.07) is trading above our estimate of [[fair value]] ($308.38)

TYL fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

TYL Stock Overview

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector.

Rewards

Earnings are forecast to grow 16.93% per year

Earnings have grown 3% per year over the past 5 years

Risk Analysis

Significant insider selling over the past 3 months

Tyler Technologies Competitors

Paycom Software

NYSE:PAYC

US$21.3b

Paylocity Holding

NasdaqGS:PCTY

US$14.4b

PTC

NasdaqGS:PTC

US$14.0b

ANSYS

NasdaqGS:ANSS

US$24.6b

Price History & Performance

Summary of all time highs, changes and price drops for Tyler Technologies
Historical stock prices
Current Share Price	US$414.07
52 Week High	US$557.55
52 Week Low	US$300.85
Beta	0.90
1 Month Change	19.50%
3 Month Change	16.75%
1 Year Change	-15.19%
3 Year Change	64.48%
5 Year Change	138.95%
Change since IPO	4,632.23%

Recent News & Updates

Aug 02

If EPS Growth Is Important To You, Tyler Technologies (NYSE:TYL) Presents An Opportunity

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jul 21

Tyler Technologies partners with Infinite Campus for student information solutions

Tyler Technologies (NYSE:TYL) announced a formal partnership with Infinite Campus, provider of student information system products that help school districts streamline educational processes, promote stakeholder collaboration, and personalize learning. Through this partnership, the Infinite Campus solution will be the preferred student information system available to Tyler clients. The partnership also enables the company to strengthen its focus on industry-leading K-12 products in ERP and student transportation. The agreement is not expected to have a material impact on Tyler’s operating results.

Jul 18

A Look At The Intrinsic Value Of Tyler Technologies, Inc. (NYSE:TYL)

Does the July share price for Tyler Technologies, Inc. ( NYSE:TYL ) reflect what it's really worth? Today, we will...

Jul 14

Florida's Orange County selects Tyler Technologies' Enterprise Assessment & Tax solution

Orange County, Florida has selected Tyler Technologies' (NYSE:TYL) Enterprise Assessment & Tax solution, powered by iasWorld. The county will use the solution to manage its entire property assessment process with a complete web-based, GIS-enabled toolset and a full complement of valuable features. Tyler's Enterprise Assessment & Tax solution is a comprehensive solution for assessment administration, computer-assisted mass appraisal, and tax billing and collections.

Shareholder Returns

	TYL	US Software	US Market
7D	3.2%	1.8%	1.1%
1Y	-15.2%	-17.8%	-13.0%

Return vs Industry: TYL exceeded the US Software industry which returned -17.7% over the past year.

Return vs Market: TYL underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is TYL's price volatile compared to industry and market?
TYL volatility
TYL Average Weekly Movement	6.1%
Software Industry Average Movement	10.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

Stable Share Price: TYL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TYL's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1966	7,143	H. Moore	https://www.tylertech.com

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. The company operates in three segments: Enterprise Software; Appraisal and Tax; and NIC. It offers financial management solutions, including modular fund accounting systems for government agencies or not-for-profit entities; utility billing systems for the billing and collection of metered and non-metered services; products to automate city and county functions, such as municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information and transportation solutions for K-12 schools.

Tyler Technologies Fundamentals Summary

How do Tyler Technologies's earnings and revenue compare to its market cap?
TYL fundamental statistics
Market Cap	US$17.17b
Earnings (TTM)	US$178.88m
Revenue (TTM)	US$1.82b

96.0x

P/E Ratio

9.4x

P/S Ratio

Is TYL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TYL income statement (TTM)
Revenue	US$1.82b
Cost of Revenue	US$1.05b
Gross Profit	US$769.24m
Other Expenses	US$590.36m
Earnings	US$178.88m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.31
Gross Margin	42.31%
Net Profit Margin	9.84%
Debt/Equity Ratio	51.4%

How did TYL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TYL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TYL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TYL. This is calculated by dividing TYL's market cap by their current preferred multiple.
What is TYL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$17.17b

TYL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10x
Enterprise Value/EBITDA	53.3x
PEG Ratio	5.7x

Price to Earnings Ratio vs Peers

How does TYL's PE Ratio compare to its peers?

TYL PE Ratio vs Peers

The above table shows the PE ratio for TYL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	83.4x
PAYC Paycom Software	93.3x	23.7%	US$21.3b
PCTY Paylocity Holding	158.4x	23.0%	US$14.4b
PTC PTC	28.1x	17.0%	US$14.0b
ANSS ANSYS	53.7x	14.0%	US$24.6b
TYL Tyler Technologies	96x	16.9%	US$17.2b

Price-To-Earnings vs Peers: TYL is expensive based on its Price-To-Earnings Ratio (96x) compared to the peer average (83.4x).

Price to Earnings Ratio vs Industry

How does TYL's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: TYL is expensive based on its Price-To-Earnings Ratio (96x) compared to the US Software industry average (44.9x)

Price to Earnings Ratio vs Fair Ratio

What is TYL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TYL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	96x
Fair PE Ratio	36.2x

Price-To-Earnings vs Fair Ratio: TYL is expensive based on its Price-To-Earnings Ratio (96x) compared to the estimated Fair Price-To-Earnings Ratio (36.2x).

Share Price vs Fair Value

What is the Fair Price of TYL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TYL ($414.07) is trading above our estimate of fair value ($308.38)

Significantly Below Fair Value: TYL is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Tyler Technologies forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TYL's forecast earnings growth (16.9% per year) is above the savings rate (1.9%).

Earnings vs Market: TYL's earnings (16.9% per year) are forecast to grow faster than the US market (12.8% per year).

High Growth Earnings: TYL's earnings are forecast to grow, but not significantly.

Revenue vs Market: TYL's revenue (9.5% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: TYL's revenue (9.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if TYL's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Tyler Technologies performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TYL has high quality earnings.

Growing Profit Margin: TYL's current net profit margins (9.8%) are lower than last year (12.3%).

Past Earnings Growth Analysis

Earnings Trend: TYL's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: TYL's earnings growth over the past year (14.8%) exceeds its 5-year average (3% per year).

Earnings vs Industry: TYL earnings growth over the past year (14.8%) underperformed the Software industry 18.5%.

Return on Equity

High ROE: TYL's Return on Equity (7.3%) is considered low.

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Financial Health

How is Tyler Technologies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TYL's short term assets ($957.3M) exceed its short term liabilities ($833.9M).

Long Term Liabilities: TYL's short term assets ($957.3M) do not cover its long term liabilities ($1.5B).

Debt to Equity History and Analysis

Debt Level: TYL's net debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TYL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TYL's debt is well covered by operating cash flow (35.7%).

Interest Coverage: TYL's interest payments on its debt are well covered by EBIT (11.4x coverage).

Balance Sheet

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Dividend

What is Tyler Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TYL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TYL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TYL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TYL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TYL has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure

CEO

H. Moore (54 yo)

5.58yrs

Tenure

US$5,590,005

Compensation

Mr. H. Lynn Moore, Jr., has been President of Tyler Technologies, Inc. since January 2017 and has been its Chief Executive Officer since May 10, 2018. Mr. Moore served as Executive Vice President at Tyler...

CEO Compensation Analysis

Compensation vs Market: H.'s total compensation ($USD5.59M) is below average for companies of similar size in the US market ($USD12.96M).

Compensation vs Earnings: H.'s compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TYL's management team is considered experienced (5 years average tenure).

Board Members

Experienced Board: TYL's board of directors are considered experienced (7.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: TYL insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31