Stock of the Day

September 17, 2020

Tyler Technologies (TYL)

$320.13
+$3.90 (+1.2%)
Market Cap: $13.47B

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 company recently reported earnings per share (EPS) of $3.09, exceeding analysts' expectations, which indicates strong financial performance and potential for growth.
  • Tyler Technologies, Inc. has shown a year-over-year revenue increase of 8.5%, suggesting a solid demand for its software and technology services in the public sector.
  • The current stock price is around $472.38, which reflects a consensus target price that suggests potential upside for investors.
  • With a net margin of 13.26% and a return on equity of 10.74%, the company demonstrates effective management and profitability, which are attractive traits for investors.
  • Analysts have a consensus rating of "Moderate Buy" for the stock, indicating overall positive sentiment in the market regarding its future performance.

Tyler Technologies Bear Case

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

  • Weiss Ratings recently downgraded the stock from a "hold" to a "sell" rating, which may indicate concerns about the company's future performance.
  • Some analysts have reduced their price targets for the stock, suggesting a lack of confidence in its short-term growth potential.
  • The company faces competition in the public sector technology space, which could impact its market share and profitability.
  • Despite recent revenue growth, the overall economic environment may pose challenges for public sector spending, affecting future earnings.
  • Investors should consider the volatility in the tech sector, which can lead to fluctuations in stock prices and potential risks for long-term investments.
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