Tyler Technologies, Inc. (TYL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Tyler Technologies, Inc. ?

Poor Management Efficiency with a low ROCE of 8.46%

The company has been able to generate a Return on Capital Employed (avg) of 8.46% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 53.90

Healthy long term growth as Net Sales has grown by an annual rate of 15.10%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 642.96 MM
ROCE(HY) Highest at 9.07%
DEBT-EQUITY RATIO (HY) Lowest at -6.9 %

With ROCE of 9.71%, it has a very expensive valuation with a 8.69 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.41%, its profits have risen by 53.2% ; the PEG ratio of the company is 2

Below par performance in long term as well as near term

Along with generating -27.41% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tyler Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tyler Technologies, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tyler Technologies, Inc.

-39.06%

-0.18

27.76%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.87%

EBIT Growth (5y)

15.64%

EBIT to Interest (avg)

53.90

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.54

Tax Ratio

13.93%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

8.46%

ROE (avg)

7.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.72

EV to EBIT

47.55

EV to EBITDA

33.64

EV to Capital Employed

5.29

EV to Sales

7.29

PEG Ratio

2.87

Dividend Yield

ROCE (Latest)

11.13%

ROE (Latest)

8.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 653.54 MM

DEBT-EQUITY RATIO (HY)

Lowest at -12.28 %

RAW MATERIAL COST(Y)

Fallen by -4.63% (YoY

CASH AND EQV(HY)

Highest at USD 2,048.02 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.7 times

-2What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 19.43 %

Here's what is working for Tyler Technologies, Inc.

Operating Cash Flow

Highest at USD 653.54 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -12.28 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at USD 2,048.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.63% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tyler Technologies, Inc.

Operating Profit Margin

Lowest at 19.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at USD 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income