Tyler Technologies Inc (TYL, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $592.04 and a daily gain of 0.52%, Tyler Technologies Inc has shown a notable three-month growth of 24.78%. A detailed analysis, supported by the GF Score, indicates that Tyler Technologies Inc is poised for significant future growth.
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, which are crucial for long-term performance. Tyler Technologies Inc boasts a GF Score of 92 out of 100, indicating a high potential for outperformance, driven by excellent scores in financial strength (8/10), profitability (10/10), and growth (10/10), though it has a lower GF Value rank (3/10) and a moderate momentum rank (6/10).
Understanding Tyler Technologies Inc's Business
Tyler Technologies Inc, with a market cap of $25.26 billion and annual sales of $2.03 billion, specializes in providing comprehensive software solutions and services to local government entities. Its core products include Munis (ERP system), Odyssey (court management system), and various payment solutions, along with additional modules and outsourced property tax assessment services. The company's operating margin stands at 12.65%, reflecting its efficient operational structure.
Financial Strength Breakdown
Tyler Technologies Inc's financial robustness is evident from its impressive Interest Coverage ratio of 19.75 and an Altman Z-Score of 10.05, indicating a strong buffer against financial distress. The company's strategic debt management is highlighted by a Debt-to-Revenue ratio of 0.32, showcasing prudent financial practices.
Profitability and Growth Metrics
The Profitability Rank and Piotroski F-Score of Tyler Technologies Inc reflect its superior ability to generate profits and maintain operational efficiency. The company's consistent performance is further supported by a Predictability Rank of 5.0 stars. Growth metrics are equally impressive, with a 3-Year Revenue Growth Rate of 19.3%, significantly outperforming peers in the software industry.
Conclusion
Considering Tyler Technologies Inc's robust financial strength, exceptional profitability, and compelling growth metrics, the GF Score underscores the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen available to GuruFocus Premium members.
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.
