Stock of the Day

September 17, 2020

Tyler Technologies (TYL)

$553.37
-$9.11 (-1.6%)
Market Cap: $24.26B

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

Tyler Technologies Bull Case

Here are some ways that investors could benefit from investing in Tyler Technologies, Inc.:

  • The current stock price is around $581.50, reflecting a recent increase, which may indicate positive market sentiment towards the company.
  • Tyler Technologies, Inc. reported a quarterly revenue of $562.43 million, surpassing analyst expectations, showcasing strong financial performance.
  • The company achieved a net margin of 13.23%, indicating effective cost management and profitability, which is attractive for potential investors.
  • Recent institutional investments, including a significant stake by YHB Investment Advisors Inc., suggest growing confidence in the company's future prospects.
  • Tyler Technologies, Inc. has demonstrated a year-over-year revenue growth of 10.3%, indicating a robust business model and potential for continued expansion.

Tyler Technologies Bear Case

Investors should be bearish about investing in Tyler Technologies, Inc. for these reasons:

  • Goodman Advisory Group LLC significantly reduced its holdings by 65.1%, which may signal concerns about the company's future performance.
  • The stock has a high price-to-earnings (P/E) ratio of approximately 87.58, suggesting that it may be overvalued compared to its earnings, which could deter value-focused investors.
  • Despite recent growth, the company faces intense competition in the technology sector, which could impact its market share and profitability.
  • Tyler Technologies, Inc. has a beta of 0.84, indicating lower volatility compared to the market, which may not appeal to investors seeking high-risk, high-reward opportunities.
  • Recent fluctuations in stock price could indicate market uncertainty, which may lead to increased risk for potential investors.
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