Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $24.00B
• Dividend Yield: N/A
• Average Volume (3M): 288.61K
• Price to Earnings (P/E): 83.9
• Beta (1Y): 0.78
• Revenue Growth: 9.96%
• EPS Growth: 50.93%
• Country: US
• Employees: 7,462
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 2.78
• Shares Outstanding: 43,123,547
• 10 Day Avg. Volume: 275,498
• 30 Day Avg. Volume: 288,614
• PEG Ratio: 8.39
• Price to Book (P/B): 6.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.53
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 24.66
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $678.67
• Price Target Upside: 21.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: $654.00 ▲(17.53%Upside)

Tyler Technologies' strong financial performance and positive earnings call are key drivers of the overall score. Despite a high valuation, the company's growth prospects in the cloud segment and effective management of financial resources support a solid investment case. However, technical indicators and macroeconomic uncertainties suggest some caution.

Positive Factors

Growth Strategy

The Tyler 2030 plan outlines four growth pillars to achieve 10%-12% organic revenue growth by leveraging the installed base, expanding the TAM with state and federal governments, cloud transition, and growing the transactions business.

Management and Leadership

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

Negative Factors

ARR and Bookings

Investors are concerned about the net new SaaS ARR added in the quarter was down 8% Y/Y and ARR from new SaaS deals was $7.9mm, which is below expectations.

Economic Uncertainty

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

Tyler Technologies Business Overview & Revenue Model

Company Description

Tyler Technologies, Inc. is a leading provider of end-to-end information management solutions and services for local governments. The company operates primarily within the public sector, offering a comprehensive suite of software solutions that empower local, regional, and state government agencies. Tyler's core products encompass financial management, human capital management, property appraisal and tax, courts and justice, public safety, and other civic services, enabling government entities to streamline their operations and improve service delivery to the communities they serve.

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 displays robust financial performance with strong revenue growth and solid profitability. The company maintains financial stability with low leverage and effective cash flow management, although there are minor fluctuations in margins and cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.14B	1.95B	1.85B	1.59B	1.12B
Gross Profit	935.76M	861.10M	783.86M	709.64M	542.51M
EBITDA	466.47M	392.63M	388.01M	328.12M	254.58M
Net Income	263.03M	165.92M	164.24M	161.46M	194.82M
Balance Sheet
Total Assets	5.18B	4.68B	4.69B	4.73B	2.61B
Cash, Cash Equivalents and Short-Term Investments	767.98M	175.88M	210.89M	361.47M	709.15M
Total Debt	638.37M	696.89M	1.05B	1.39B	22.18M
Total Liabilities	1.79B	1.74B	2.06B	2.41B	621.16M
Stockholders Equity	3.39B	2.94B	2.62B	2.32B	1.99B
Cash Flow
Free Cash Flow	604.10M	327.43M	331.30M	316.14M	326.62M
Operating Cash Flow	624.63M	380.44M	381.45M	371.75M	355.09M
Investing Cash Flow	-67.61M	-76.96M	-172.53M	-2.09B	-98.32M
Financing Cash Flow	22.21M	-311.84M	-344.24M	1.42B	114.17M

Tyler Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 556.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 556.46 is below the 20-day moving average (MA) of 569.01, below the 50-day MA of 573.56, and below the 200-day MA of 586.50, indicating a bearish trend. The MACD of -5.13 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 35.49 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
SSNC	78 Outperform	$21.01B	26.80	12.07%	1.17%	6.75%	15.99%
TYL	76 Outperform	$24.00B	83.91	8.87%	―	9.96%	50.93%
PCTY	75 Outperform	$10.38B	46.84	19.70%	―	14.63%	17.15%
PAYC	75 Outperform	$13.81B	34.09	24.99%	0.63%	9.86%	-14.34%
GWRE	70 Outperform	$18.81B	567.24	2.61%	―	18.61%	―
HUBS	64 Neutral	$29.52B	7,452.21	-1.34%	―	19.17%	83.20%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%

Tyler Technologies Corporate Events

Tyler Technologies CEO Nominated as Board Chair

In a strategic move for Tyler Technologies, the independent directors of the Board have unanimously agreed to nominate H. Lynn Moore, Jr., the current President and CEO, to assume the role of Board Chair at the 2026 Annual Meeting. This decision follows Mr. Marr’s choice not to stand for reelection, and the Board plans to maintain a Lead Independent Director to ensure governance balance as the Board Chair will not be independent.

The most recent analyst rating on (TYL) stock is a Buy with a $700.00 price target. To see the full list of analyst forecasts on Tyler Technologies stock, see the TYL Stock Forecast page.

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.