Tyler Technologies, Inc.
Tyler Technologies, Inc. Fundamental Analysis
Tyler Technologies, Inc. (TYL) shows weak financial fundamentals with a PE ratio of 43.25, profit margin of 13.53%, and ROE of 8.73%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 9.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TYL's fundamental strength across five key dimensions:
Efficiency Score
WeakTYL struggles to generate sufficient returns from assets.
Valuation Score
ModerateTYL shows balanced valuation metrics.
Growth Score
ExcellentTYL delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTYL maintains a strong and stable balance sheet.
Profitability Score
WeakTYL struggles to sustain strong margins.
Key Financial Metrics
Is TYL Expensive or Cheap?
P/E Ratio
TYL trades at 43.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TYL's PEG of 0.43 indicates potential undervaluation.
Price to Book
The market values Tyler Technologies, Inc. at 3.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.64 times EBITDA. This signals the market has high growth expectations.
How Well Does TYL Make Money?
Net Profit Margin
For every $100 in sales, Tyler Technologies, Inc. keeps $13.53 as profit after all expenses.
Operating Margin
Core operations generate 15.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.73 in profit for every $100 of shareholder equity.
ROA
Tyler Technologies, Inc. generates $5.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tyler Technologies, Inc. generates strong operating cash flow of $653.10M, reflecting robust business health.
Free Cash Flow
Tyler Technologies, Inc. generates strong free cash flow of $637.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $14.81 in free cash annually.
FCF Yield
TYL converts 4.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TYL Stacks Against Its Sector Peers
| Metric | TYL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.25 | 34.79 | Worse (Expensive) |
| ROE | 8.73% | 1185.00% | Weak |
| Net Margin | 13.53% | -131296.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 1.05 | 4.90 | Neutral |
| ROA | 5.60% | -325472.00% (disorted) | Weak |
TYL outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tyler Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.44%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
62.78%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
122.37%
Industry Style: Growth, Innovation, High Beta
High Growth