Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $24.76B
• Dividend Yield: N/A
• Average Volume (3M): 305.11K
• Price to Earnings (P/E): 85.5
• Beta (1Y): 0.78
• Revenue Growth: 9.96%
• EPS Growth: 50.93%
• Country: US
• Employees: 7,462
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Application
• EPS (TTM): 2.78
• Shares Outstanding: 43,123,547
• 10 Day Avg. Volume: 240,258
• 30 Day Avg. Volume: 305,106
• PEG Ratio: 8.47
• Price to Book (P/B): 6.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.92
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 24.96
• Enterprise Value/Ebitda: 13.28
• 1Y Price Target: $667.78
• Price Target Upside: 17.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: $648.00 ▲( 14.32% Upside)

Tyler Technologies' strong financial performance and positive earnings call are the primary drivers of its stock score. The company's strategic shift towards SaaS and cloud-based solutions has enhanced profitability and efficiency. However, high valuation metrics and mixed technical signals, along with concerns about decreased bookings, temper the overall score.

Positive Factors

Financial Performance

The budget environment for customers is expected to be favorable, with strong funding from property and sales tax receipts.

Growth and Market Potential

The roadmap for AI products is a key topic that suggests future growth potential for Tyler Technologies.

Service and Management Improvements

The appointment of Andrew Kahl as Chief Client Officer is seen as a positive change and improvement in service delivery.

Negative Factors

ARR and Booking Concerns

There is some worry among investors over the slower pace of ARR and new software bookings.

Economic Uncertainty

Sales cycles are now elongating as economic uncertainty is pervasive not just in the private, but also public sector as well.

Revenue and Margin Challenges

Free cash flow, however, declined 16% year-over-year and came in below Street expectations by 4%.

Tyler Technologies Business Overview & Revenue Model

Company Description

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. The company also provides a suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle multi-jurisdictional county or statewide implementations, and single county systems; public safety software solutions; systems and software to automate the appraisal and assessment of real and personal property, as well as tax applications for agencies that bill and collect taxes; planning, regulatory, and maintenance software solutions for public sector agencies; software applications to enhance and automate operations involving records and document management; and data and insights solutions. In addition, it offers software as a service arrangements and electronic document filing solutions for courts and law offices; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. The company has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. Tyler Technologies, Inc. was founded in 1966 and is headquartered in Plano, Texas.

How the Company Makes Money

Tyler Technologies generates revenue primarily through the sale of software licenses, subscriptions, and related services. The company's revenue model includes a mix of recurring and non-recurring revenue streams. Recurring revenues are derived from software subscriptions, maintenance, and support services, which provide a steady income stream. Non-recurring revenues come from the sale of perpetual licenses and implementation services that include installation, configuration, and training. Tyler also earns money through professional services such as consulting and custom software development. The company's growth is supported by strategic partnerships and alliances with other technology firms, allowing them to expand their product offerings and reach. Additionally, Tyler leverages government contracts and long-term agreements with public sector clients to secure a stable and growing revenue base.

Tyler Technologies Financial Statement Overview

Summary

Tyler Technologies is in a strong financial position, driven by robust revenue growth and solid profitability. The company maintains financial stability with low leverage and effective cash flow management. While there are minor fluctuations in margins and cash flow, the overall financial health remains sound, positioning the company well for future growth opportunities in the software application industry.

Income Statement

Tyler Technologies demonstrates strong and consistent revenue growth, with a remarkable increase from $1.59 billion in 2021 to $2.19 billion in TTM, indicating a robust growth trajectory. The gross profit margin remains consistently high at around 44% in TTM, reflecting efficiency in cost management. The net profit margin also improved to approximately 13.23% in TTM, showing solid profitability. However, the EBITDA margin slightly declined in TTM compared to 2023, which might indicate rising operational costs.

Balance Sheet

The company maintains a healthy equity ratio of 69.9% in TTM, highlighting strong financial stability with substantial equity relative to total assets. The debt-to-equity ratio improved to 0.18 in TTM, indicating effective debt management. Return on Equity (ROE) stands at 8.25% in TTM, suggesting good returns for shareholders, although there is room for improvement. Overall, the balance sheet reflects a stable financial position with low leverage.

Cash Flow

Tyler Technologies shows a strong free cash flow growth rate, with free cash flow increasing from $327.43 million in 2023 to $576.34 million in TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 2.1 in TTM, demonstrating efficient cash conversion. However, the slight decline in operating cash flow compared to 2024 suggests a need to monitor cash flow sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.19B	2.14B	1.95B	1.85B	1.59B	1.12B
	Gross Profit
965.33M	935.76M	861.10M	783.86M	709.64M	542.51M
	EBIT
321.72M	299.53M	218.54M	214.25M	180.74M	172.93M
	EBITDA
486.59M	466.47M	392.63M	388.01M	328.12M	254.58M
	Net Income Common Stockholders
289.91M	263.03M	165.92M	164.24M	161.46M	194.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
196.94M	767.98M	175.88M	210.89M	361.47M	709.15M
	Total Assets
4.61B	5.18B	4.68B	4.69B	4.73B	2.61B
	Total Debt
645.42M	638.37M	696.89M	1.05B	1.39B	22.18M
	Net Debt
457.18M	-106.35M	531.40M	872.32M	1.08B	-581.44M
	Total Liabilities
1.59B	1.79B	1.74B	2.06B	2.41B	621.16M
	Stockholders Equity
3.02B	3.39B	2.94B	2.62B	2.32B	1.99B
Cash Flow		Free Cash Flow
576.34M	604.10M	327.43M	331.30M	316.14M	326.62M
	Operating Cash Flow
608.95M	624.63M	380.44M	381.45M	371.75M	355.09M
	Investing Cash Flow
-151.10M	-67.61M	-76.96M	-172.53M	-2.09B	-98.32M
	Financing Cash Flow
59.64M	22.21M	-311.84M	-344.24M	1.42B	114.17M

Tyler Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 566.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYL, the sentiment is Negative. The current price of 566.82 is above the 20-day moving average (MA) of 554.32, above the 50-day MA of 562.13, and below the 200-day MA of 588.04, indicating a neutral trend. The MACD of 3.28 indicates Negative momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TYL.

Tyler Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	80 Outperform	$15.07B	37.21	24.99%	0.57%	9.86%	-14.34%
TYL	79 Outperform	$24.76B	85.47	8.87%	―	9.96%	50.93%
PCTY	78 Outperform	$11.08B	49.01	19.70%	―	14.63%	17.15%
SSNC	75 Outperform	$19.83B	25.03	12.34%	1.23%	6.92%	28.43%
HUBS	70 Neutral	$33.84B	7,452.21	-1.34%	―	19.17%	83.20%
GWRE	67 Neutral	$18.06B	528.94	-1.34%	―	17.16%	67.81%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%

Tyler Technologies Corporate Events

Tyler Technologies Streamlines Governance at Annual Meeting

On May 6, 2025, Tyler Technologies, Inc. held its annual meeting of stockholders, where several key issues were voted on. The election of directors saw all nominees receive significant support, while an advisory resolution on executive compensation and the ratification of Ernst & Young LLP as independent auditors were also approved. Notably, amendments to the Restated Certificate of Incorporation to remove supermajority voting standards and to incorporate existing provisions in the Company’s Bylaws were passed, reflecting a shift towards more streamlined governance practices.