Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $19.94B
• Dividend Yield: N/A
• Average Volume (3M): 388.08K
• Price to Earnings (P/E): 64.5
• Beta (1Y): 0.59
• Revenue Growth: 10.62%
• EPS Growth: 31.43%
• Country: US
• Employees: 7,462
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.97
• Shares Outstanding: 43,027,730
• 10 Day Avg. Volume: 496,353
• 30 Day Avg. Volume: 388,080
• PEG Ratio: 1.66
• Price to Book (P/B): 7.25
• Price to Sales (P/S): 11.49
• P/FCF Ratio: 40.67
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 9.84
• Enterprise Value/Gross Profit: 22.25
• Enterprise Value/Ebitda: 42.90
• 1Y Price Target: $687.00
• Price Target Upside: 48.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 11.35
• Revenue Forecast (FY): $2.35B

• Rating: 66 Neutral
• Price Target: $516.00 ▲(11.34% Upside)

Tyler Technologies' overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust revenue growth and strategic initiatives. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The decline in free cash flow growth and challenges highlighted in the earnings call also contribute to a more cautious outlook.

Positive Factors

Revenue Growth

The consistent revenue growth reflects Tyler's expanding market presence and strong demand for its software solutions, supporting long-term business stability.

SaaS Growth

The robust growth in SaaS revenues indicates successful cloud transition and recurring revenue model, enhancing Tyler's competitive edge and future profitability.

Successful Acquisitions

Strategic acquisitions bolster Tyler's product offerings and market reach, driving long-term growth and strengthening its position in the public sector software market.

Negative Factors

Decline in New SaaS ARR

The decline in new SaaS ARR could signal challenges in maintaining growth momentum, potentially impacting future revenue streams and market competitiveness.

Impact of Texas Payments Contract Wind Down

The reduction in revenues from the Texas payments contract may affect overall revenue growth and necessitate finding new revenue sources to offset the decline.

Cash Flow Decline

A decline in cash flow could hinder Tyler's ability to invest in growth opportunities and manage financial obligations, affecting long-term financial health.

Tyler Technologies Business Overview & Revenue Model

Company Description

Tyler Technologies, Inc. is a leading provider of integrated software and technology services for the public sector. Founded in 1966 and headquartered in Plano, Texas, Tyler specializes in solutions for local governments, including software for financial management, public safety, and citizen services. The company serves various sectors, including law enforcement, education, and municipal management, and is recognized for its innovative products designed to enhance operational efficiency and improve service delivery for government agencies.

How the Company Makes Money

Tyler Technologies generates revenue primarily through the sale of software licenses, maintenance contracts, and professional services. The company offers subscription-based software solutions, allowing clients to pay annually for access to their platforms. Key revenue streams include the sale of its ERP (Enterprise Resource Planning) systems, public safety software, and court case management systems. Additionally, Tyler earns revenue from consulting services that assist in the implementation and integration of its software solutions. Strategic partnerships with government entities and industry collaborations enhance its market reach and contribute to its earnings, as does the increasing demand for digital transformation in the public sector. The company's commitment to innovation and expansion into new markets further bolsters its financial performance.

Tyler Technologies Financial Statement Overview

Summary

Tyler Technologies exhibits solid financial health with strong profitability and a stable balance sheet. The company effectively manages its costs, resulting in improved margins and a healthy return on equity. While cash flow generation is strong, the recent decline in free cash flow growth warrants monitoring.

Income Statement

Tyler Technologies demonstrates strong profitability with a consistent increase in gross profit and net profit margins over the years. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 42.70% and a net profit margin of 13.66%, indicating efficient cost management. Revenue growth has been steady, albeit slowing from previous years, with a TTM growth rate of 2.34%. The EBIT and EBITDA margins have also improved, reflecting operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.18 in the TTM, showcasing prudent financial leverage. Return on equity has improved to 8.89%, indicating effective use of shareholder funds. The equity ratio stands at 68.11%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Operating cash flow remains robust, with a TTM operating cash flow to net income ratio of 2.01, indicating strong cash generation relative to net income. However, free cash flow growth has declined by 25.8% in the TTM, which could be a concern if the trend continues. The free cash flow to net income ratio remains high at 96.51%, reflecting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.30B	2.14B	1.95B	1.85B	1.59B	1.12B
Gross Profit	1.02B	876.13M	786.47M	722.50M	664.79M	520.85M
EBITDA	527.40M	466.47M	392.63M	388.01M	328.12M	256.70M
Net Income	315.29M	263.03M	165.92M	164.24M	161.46M	194.82M
Balance Sheet
Total Assets	5.46B	5.18B	4.68B	4.69B	4.73B	2.61B
Cash, Cash Equivalents and Short-Term Investments	950.82M	767.98M	175.88M	210.89M	361.47M	675.81M
Total Debt	643.45M	638.37M	696.89M	1.05B	1.39B	22.18M
Total Liabilities	1.85B	1.79B	1.74B	2.06B	2.41B	621.16M
Stockholders Equity	3.60B	3.39B	2.94B	2.62B	2.32B	1.99B
Cash Flow
Free Cash Flow	618.93M	604.10M	327.43M	331.30M	316.14M	326.62M
Operating Cash Flow	634.43M	624.63M	380.44M	381.45M	371.75M	355.09M
Investing Cash Flow	-197.05M	-67.61M	-76.96M	-172.53M	-2.09B	-98.32M
Financing Cash Flow	-141.58M	22.21M	-311.84M	-344.24M	1.42B	114.17M

Tyler Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 463.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 463.43 is below the 20-day moving average (MA) of 493.10, below the 50-day MA of 515.87, and below the 200-day MA of 562.49, indicating a bearish trend. The MACD of -14.93 indicates Positive momentum. The RSI at 31.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.75 is Positive, 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	$20.56B	25.08	12.40%	1.21%	6.67%	21.21%
MANH	76 Outperform	$10.70B	50.45	73.58%	―	4.10%	-0.21%
PCTY	71 Outperform	$7.72B	35.52	20.42%	―	13.30%	2.80%
GWRE	69 Neutral	$18.43B	272.99	4.99%	―	22.64%	―
TYL	66 Neutral	$19.94B	64.53	9.17%	―	10.62%	31.43%
ESTC	65 Neutral	$9.20B	―	-9.65%	―	17.42%	-228.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tyler Technologies Corporate Events

Tyler Technologies Reports Strong Q3 2025 Earnings

Tyler Technologies, Inc. is a leading provider of software solutions and services for the public sector, specializing in enterprise software and platform technologies that enhance the operations of government entities.

Tyler Technologies’ Earnings Call: Strong Growth and Strategic Moves

Tyler Technologies’ Earnings Call Highlights Strong Performance and Strategic Growth

Tyler Technologies Reports Strong Q2 2025 Earnings

Tyler Technologies, Inc. is a leading provider of software solutions and services for the public sector, offering innovative technology to enhance the efficiency and effectiveness of government operations. The company operates primarily in the enterprise software and platform technologies sectors, providing a range of solutions including public administration, courts and public safety, education, and property management.