Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $25.44B
• Dividend Yield: N/A
• Average Volume (3M): 270.58K
• Price to Earnings (P/E): 89.0
• Beta (1Y): 0.78
• Revenue Growth: 9.96%
• EPS Growth: 50.93%
• Country: US
• Employees: 7,462
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 2.78
• Shares Outstanding: 43,123,547
• 10 Day Avg. Volume: 331,109
• 30 Day Avg. Volume: 270,577
• PEG Ratio: -60.76
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.51
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 14.78
• Enterprise Value/Ebitda: 7.86
• 1Y Price Target: $671.50
• Price Target Upside: 13.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• Price Target: $665.00 ▲(12.70%Upside)

Tyler Technologies' overall stock score reflects its strong financial performance and positive earnings call, highlighting robust revenue growth and strategic cloud transition. While the technical analysis suggests a stable market position, the high P/E ratio indicates potential overvaluation, which could constrain future stock performance. The overall outlook remains positive, supported by optimistic guidance and strategic initiatives.

Positive Factors

Financial Performance

Tyler reported a solid first quarter with SaaS ARR growing by 21% to $720.3 million and transaction-based revenues increasing by 18.5% to $194.9 million.

Growth Strategy

The Tyler 2030 plan is designed to achieve 10%-12% organic revenue growth through strategic initiatives like leveraging the installed base and expanding the TAM with state and federal governments.

Negative Factors

Cash Flow

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

Investor Concerns

Investors are concerned about the net new SaaS ARR added during the quarter, which was down 8% year-over-year and below expectations.

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 demonstrates strong revenue growth and solid profitability. The company maintains financial stability with low leverage and effective cash flow management, despite 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	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
EBITDA	486.59M	466.47M	392.63M	388.01M	328.12M	254.58M
Net Income	289.91M	263.03M	165.92M	164.24M	161.46M	194.82M
Balance Sheet
Total Assets	5.19B	5.18B	4.68B	4.69B	4.73B	2.61B
Cash, Cash Equivalents and Short-Term Investments	807.40M	767.98M	175.88M	210.89M	361.47M	709.15M
Total Debt	640.10M	638.37M	696.89M	1.05B	1.39B	22.18M
Total Liabilities	1.68B	1.79B	1.74B	2.06B	2.41B	621.16M
Stockholders Equity	3.51B	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: Positive
• Last Price: 590.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 590.04 is above the 20-day moving average (MA) of 582.03, above the 50-day MA of 568.90, and above the 200-day MA of 587.87, indicating a bullish trend. The MACD of 4.22 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 75.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TYL.

Tyler Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	81 Outperform	$13.48B	33.27	24.99%	0.64%	9.86%	-14.34%
TYL	79 Outperform	$25.44B	88.97	8.87%	―	9.96%	50.93%
SSNC	78 Outperform	$20.60B	26.00	12.34%	1.20%	6.92%	28.43%
GWRE	71 Outperform	$19.40B	585.02	2.61%	―	18.61%	―
PCTY	71 Outperform	$10.20B	46.03	19.70%	―	14.63%	17.15%
Sector *	69 Neutral	¥228.59B	14.33	7.64%	2.71%	9.13%	8.49%
HUBS	64 Neutral	$29.58B	7,452.21	-1.34%	―	19.17%	83.20%

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.