TYL Stock Analysis — Tyler Technologies
Sector: Software
AI Verdict
Tyler trades at 25.2x next year's earnings with huge growth expectations, so you're getting a fair price for the sector if its sticky government contracts deliver, but any stumble could punish the stock further.
Competitive Moat
Tyler Technologies provides mission-critical software platforms for local governments and public sector agencies, embedding itself deeply in workflows like court case management and tax assessment. Its moat comes from high switching costs and long-term contracts, making it difficult for municipalities to replace its integrated systems.
Summary
Tyler's sharp 72.6% expected EPS growth is driving a big drop in forward P/E despite a brutal -42.55% one-year return.
Where It Stands
Shares are down -42.55% in the past year, the RSI is a neutral 46.9, and the stock trades at 25.2x forward earnings—right at the software sector median of 35x, but much lower than its trailing 43.6x P/E.
Key Metrics
- RSI: 46.9 — Neutral
- Trailing P/E: 43.6x
- Forward P/E: 25.2x
- PEG Ratio: 0.59
- Earnings Growth: +0.7%
- Revenue Growth: +0.1%
- Market Cap: $13.5B
- 1-Year Return: -42.55%
- 52-Week High: $580.48
- 52-Week Low: $270.71
Analyst Consensus
23 Buy · 5 Hold · 0 Sell (28 analysts)
Bull Case
With analysts projecting 72.6% EPS growth and a forward P/E of 25.2x, you're paying a typical software multiple for outsized earnings acceleration.
Bear Case
If the forward P/E reverts to the trailing 43.6x level, the stock would need a massive rally, but if growth stumbles, a further P/E compression could mean another steep drop.
Catalyst to Watch
Watch for quarterly earnings beats or misses—if actual EPS fails to approach the 72.6% growth forecast, the current multiple will look expensive.