TYL Stock Analysis — Tyler Technologies
Sector: Software
AI Verdict
Tyler trades at 27x next year's earnings with a huge 72% EPS growth forecast—cheap for the growth if its government software moat holds, but that forecast needs to materialize after a bruising year.
Competitive Moat
Tyler Technologies provides mission-critical software for local governments, creating high switching costs due to complex integrations and regulatory requirements. Its long-term contracts and deep domain expertise in public sector workflows make it difficult for new entrants to displace.
Summary
Tyler's sharp 72% forward EPS growth forecast is drawing attention after a steep 1-year drop of -37.52%.
Where It Stands
Shares are down -37.52% over the past year, RSI is neutral at 58.7, and the stock trades at 27.1x forward earnings versus a software sector median of 35x.
Key Metrics
- RSI: 58.7 — Neutral
- Trailing P/E: 46.6x
- Forward P/E: 27.1x
- PEG Ratio: 0.63
- Earnings Growth: +0.7%
- Revenue Growth: +0.1%
- Market Cap: $14.2B
- 1-Year Return: -37.52%
- 52-Week High: $621.34
- 52-Week Low: $283.72
Analyst Consensus
22 Buy · 5 Hold · 0 Sell (27 analysts)
Bull Case
With analysts projecting 72.0% EPS growth next year and a forward P/E of 27.1x, you're getting much faster growth than most software names for a lower-than-average multiple.
Bear Case
If the P/E falls to the sector median of 35x but growth disappoints, the stock could see further downside from already depressed levels, especially given the -37.52% 1-year return.
Catalyst to Watch
Watch for upcoming quarterly results—if EPS growth comes in well below the 72.0% consensus, the valuation could reset lower.