Tyler Technologies Inc (TYL, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial position. With its shares currently priced at $606, Tyler Technologies Inc has experienced a modest daily gain of 0.02% and a more notable three-month change of 2.96%. A detailed analysis, underscored by the GF Score, indicates that Tyler Technologies Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a total score, which ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Tyler Technologies Inc boasts a GF Score of 94, signaling strong future performance potential.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding Tyler Technologies Inc's Business
Tyler Technologies Inc, with a market cap of $25.94 billion and annual sales of $2.08 billion, specializes in providing comprehensive software solutions and services to local government entities. Its core products include Munis, Odyssey, and various payment solutions, alongside additional modules and outsourced services. The company's operating margin stands at 13.27%, reflecting its efficient operational structure.
Financial Strength Breakdown
Tyler Technologies Inc's financial robustness is evident through its impressive Interest Coverage ratio of 32.72 and an Altman Z-Score of 10.2, indicating a strong buffer against financial distress. Additionally, its strategic debt management is highlighted by a Debt-to-Revenue ratio of 0.31.
Profitability and Growth Metrics
Tyler Technologies Inc excels in profitability, as evidenced by its top-tier Profitability Rank. The company's growth trajectory is also impressive, with a 3-Year Revenue Growth Rate of 19.3%, significantly outperforming the majority of its industry peers. This growth is supported by a strong increase in EBITDA over recent years.
Conclusion
Considering Tyler Technologies Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
