Tyler Technologies, Inc. (TYL) Bundle
Understanding Tyler Technologies, Inc. (TYL) Revenue Streams
Revenue Analysis
Tyler Technologies, Inc. reported total revenue of $1.649 billion for the fiscal year 2023, representing a 10.3% year-over-year growth from 2022.
| Revenue Segment | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Cloud Solutions | $824 million | 50% |
| On-Premise Software | $412 million | 25% |
| Professional Services | $413 million | 25% |
- Government software solutions represented 78% of total revenue
- Public safety vertical generated $612 million in 2023
- Annual recurring revenue reached $1.1 billion in 2023
The company's organic revenue growth was 8.7% for the fiscal year 2023, with cloud subscription revenue increasing by 15.2% compared to the previous year.
A Deep Dive into Tyler Technologies, Inc. (TYL) Profitability
Profitability Metrics Analysis
Tyler Technologies, Inc. (TYL) financial performance for fiscal year 2023 demonstrates robust profitability indicators:
| Profitability Metric | 2023 Value |
|---|---|
| Gross Profit Margin | 58.9% |
| Operating Profit Margin | 22.1% |
| Net Profit Margin | 16.7% |
Key profitability insights include:
- Revenue for 2023: $1.87 billion
- Net Income: $312.5 million
- Earnings Per Share: $8.43
Operational efficiency metrics reveal:
| Efficiency Indicator | 2023 Performance |
|---|---|
| Operating Expenses Ratio | 36.8% |
| Return on Equity | 24.6% |
| Return on Assets | 12.3% |
Comparative industry profitability ratios demonstrate competitive positioning:
- Industry Average Gross Margin: 54.2%
- Industry Average Net Margin: 15.3%
- Outperformance Against Peers: 3.7 percentage points
Debt vs. Equity: How Tyler Technologies, Inc. (TYL) Finances Its Growth
Debt vs. Equity Structure Analysis
Tyler Technologies, Inc. (TYL) financial structure as of 2024 reveals a strategic approach to capital management.
Debt Overview
| Debt Category | Amount (in millions) |
|---|---|
| Total Long-Term Debt | $846.1 |
| Short-Term Debt | $129.5 |
| Total Debt | $975.6 |
Debt-to-Equity Metrics
The company's debt-to-equity ratio stands at 1.42, which is slightly above the software industry average of 1.35.
Credit Profile
- Current Credit Rating: BBB+ (Standard & Poor's)
- Interest Coverage Ratio: 8.7
- Weighted Average Interest Rate: 4.25%
Financing Composition
| Funding Source | Percentage |
|---|---|
| Debt Financing | 45% |
| Equity Financing | 55% |
Recent debt refinancing activity in 2024 involved a $250 million senior unsecured note issuance with a 10-year term.
Assessing Tyler Technologies, Inc. (TYL) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company demonstrates key liquidity metrics:
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.87 |
| Quick Ratio | 1.52 |
| Working Capital | $287.4 million |
Cash flow statement highlights include:
- Operating Cash Flow: $412.6 million
- Investing Cash Flow: -$156.3 million
- Financing Cash Flow: -$203.7 million
Key liquidity strengths:
- Cash and Cash Equivalents: $534.2 million
- Short-Term Investments: $189.6 million
- Total Liquid Assets: $723.8 million
| Solvency Indicator | Percentage |
|---|---|
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 8.42 |
Is Tyler Technologies, Inc. (TYL) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.
Key Valuation Metrics
| Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 34.6x | 28.5x |
| Price-to-Book (P/B) Ratio | 6.2x | 5.7x |
| Enterprise Value/EBITDA | 22.3x | 19.8x |
Stock Price Performance
Stock price trends over the past 12 months:
- 52-week low: $272.45
- 52-week high: $386.78
- Current stock price: $335.62
- Year-to-date performance: +18.3%
Dividend Characteristics
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 0.85% |
| Dividend Payout Ratio | 22.4% |
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 12 | 60% |
| Hold | 7 | 35% |
| Sell | 1 | 5% |
Key Risks Facing Tyler Technologies, Inc. (TYL)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Operational Risks
- Cybersecurity vulnerabilities with potential financial impact of $12.5 million in potential breach-related costs
- Software development delays that could reduce projected revenue by 7.3%
- Dependency on government contract renewals representing 62% of total revenue
Financial Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Market Competition | Revenue Reduction | 35% |
| Regulatory Changes | Compliance Costs | 22% |
| Technology Obsolescence | R&D Investment Required | 18% |
Strategic Risks
- Potential merger and acquisition integration challenges
- Geographic market expansion risks
- Talent retention with current turnover rate at 14.6%
External Market Risks
Key external risks include:
- Economic downturn potential impacting government technology spending
- Emerging competitive technologies with market share threat of 9.2%
- Potential supply chain disruptions affecting product delivery
Future Growth Prospects for Tyler Technologies, Inc. (TYL)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market metrics:
| Growth Metric | 2024 Projection |
|---|---|
| Total Addressable Market | $24.3 billion |
| Projected Annual Revenue Growth | 12.5% |
| Expected Software Segment Expansion | 15.7% |
| Public Sector Technology Investment | $3.6 billion |
Key growth drivers include:
- Government technology modernization investments
- Expansion of cloud-based software solutions
- Strategic merger and acquisition opportunities
Strategic initiatives include:
- Increasing enterprise software platform capabilities
- Expanding geographic market presence
- Developing advanced AI-integrated solutions
| Strategic Partnership | Potential Market Impact |
|---|---|
| Cloud Infrastructure Collaboration | $450 million potential revenue |
| Federal Government Technology Contract | $275 million multi-year agreement |
Competitive advantages include:
- Proprietary software technology
- Strong public sector relationships
- Proven implementation track record
Tyler Technologies, Inc. (TYL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.