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Tyler Technologies Inc TYL

Morningstar Rating
$403.07 +0.93 (0.23%)
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Company Report

Tyler Earnings: Margins and SaaS Growth Punctuate Solid Results

We are maintaining our fair value estimate of $475 per share for wide-moat Tyler after the company reported solid third-quarter results that included revenue that was in line with our expectations and better-than-anticipated profitability. We view shares as attractive despite a post-earnings pop. SaaS growth ticked up, which is positive but something that we do not view as a durable trend. Management continues to guide to 20% compounded growth for SaaS through 2025. Margins were similarly strong, but we are not convinced that we need to make material changes to our model. Implied fourth-quarter growth was generally in line with our thinking. We continue to see federal stimulus funds as supporting the healthy environment and see consistent growth and margin expansion over time. We believe Tyler is the clear leader for municipal software needs and therefore continue to view shares as attractive.

Price vs Fair Value

TYL is trading at a 15% discount.
Price
$403.09
Fair Value
$968.00
Uncertainty
Medium
1-Star Price
$336.33
5-Star Price
$124.80
Economic Moat
Xcjb
Capital Allocation
Pqycgnw

Bulls Say, Bears Say

Bulls

Tyler is the runaway market leader seeking to upgrade a large and underserved local government and related public institution market that we believe is ripe for modernization.

Bears

Despite Tyler's recent success, its revenue growth has not been much better than the average software firm over the past few years.

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News

Trading Information

Previous Close Price
$402.14
Day Range
$400.59404.71
52-Week Range
$301.74426.83
Bid/Ask
$0.00 / $604.95
Market Cap
$16.98 Bil
Volume/Avg
160,875 / 225,558

Key Statistics

Price/Earnings (Normalized)
53.25
Price/Sales
8.94
Dividend Yield
Dividend Yield (Forward)
Total Yield

Company Profile

Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts and other local government entities. The company’s three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, or CMS, and payments. The company also provides a variety of add-on modules and offers outsourced property tax assessment services.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
7,301

Competitors

Valuation

Metric
TYL
MSFT
SAP
Price/Earnings (Normalized)
53.2535.8132.67
Price/Book Value
5.9512.604.12
Price/Sales
8.9412.805.67
Price/Cash Flow
50.3728.8627.50
Price/Earnings
TYL
MSFT
SAP

Financial Strength

Metric
TYL
MSFT
SAP
Quick Ratio
0.851.451.38
Current Ratio
0.931.661.55
Interest Coverage
7.6946.912.25
Quick Ratio
TYL
MSFT
SAP

Profitability

Metric
TYL
MSFT
SAP
Return on Assets (Normalized)
6.96%21.73%7.42%
Return on Equity (Normalized)
11.97%43.59%12.89%
Return on Invested Capital (Normalized)
9.46%32.22%11.28%
Return on Assets
TYL
MSFT
SAP

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