Tyler Technologies, Inc. (TYL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Tyler Technologies, Inc.

Updated on October 31, 2026 · accounts published on October 28, 2026

A cash-generative tech business with a strong balance sheet and modest returns on capital

Tyler Technologies trades at a P/E of 50.9×, 39% below its ten-year median but 62% above its sector, with EPS up 19% over 12 months.

• Is Tyler Technologies expensive or cheap? Its P/E of 50.9× is 39% below its ten-year median, yet 62% above the median of its sector.
• How is the business doing? EPS grew 19% over the last 12 months, twice the 9% revenue growth, with operating margin steady near its 15.5% average.
• How strong is the balance sheet? Tyler Technologies had net cash of $9.66 per share in fiscal 2025, and net debt to EBITDA stood at −0.6×.
• Does it grow with real cash or by diluting shareholders? Free cash flow was 27% of revenue in fiscal 2025 and stock pay 6.5%, both healthy for tech; 6.7% growth falls short.
• What to expect from the next earnings? Analysts expect EPS of $3.42 for the quarter reported on February 10, 2027; 25 of 37 recommend buying.

Is Tyler Technologies expensive or cheap?

Over the last 12 months Tyler Technologies trades at a P/E of 50.9×, 39% below its ten-year median of 83.8×. In the past decade it has traded at a lower multiple only 13% of the time, within a range of 35.1× to 163×. Against its sector the picture flips: the median P/E is 31.5× across 317 companies, so Tyler Technologies carries a 62% premium. EV/EBITDA of 28.8× sits well below its five-year average of 48.2×. The stock is down 13% over the last 12 months and sits 14% below its 52-week high of $472.77. A free cash flow yield of 4.2% remains modest.

How is the business doing?

Revenue rose 9.1% over the last 12 months and EPS 19.0%, so earnings are growing faster than sales. Margins have barely moved: the operating margin of 15.6% over the last 12 months matches the 15.5% average of fiscal 2014-2025 and the 15.3% of fiscal 2025. The weak spot is return on capital. ROIC stands at 6.8% over the last 12 months, 1.4 points below the sector median of 8.2%, and it has exceeded 10% in only 3 of the last 10 fiscal years, with a low of 4.9% in 2023. An ROE of 10.2% tells a similar story.

How strong is the balance sheet?

At the end of fiscal 2025, cash of $25.46 per share exceeded debt of $15.80, leaving net cash of $9.66 per share, equal to 2.4% of the current price. Net debt to EBITDA of −0.6× compares with a tolerance of up to 1.5× for software companies. Debt to equity of 0.52 and a current ratio of 1.33 over the last 12 months are comfortable. An Altman Z-score of 7.2 places the company in the safe zone, and a Piotroski score of 7 out of 9 points to solid financial health. The balance sheet is the least of the concerns here.

Does it grow with real cash or by diluting shareholders?

In technology, generic ratios fall short: what matters is growth, pricing power and dilution through stock-based pay, because a software company can report profits while handing a large slice of value to employees in shares. Tyler Technologies passes on cash. Free cash flow equalled 27.3% of revenue in fiscal 2025, above the 20% healthy mark, and stock-based compensation took 6.5% of revenue, under the 10% threshold. Growth is the gap. Revenue per share rose 6.7% a year over fiscal 2022-2025, against a healthy 15%, and the Rule of 40 scores 34, just short of 35. A gross margin of 44.0% sits far below the 70% expected of software.

What to expect from the next earnings?

Tyler Technologies has beaten EPS estimates in 6 of the last 8 quarters. On October 28, 2026 it reported EPS of $3.52 against $3.48 expected, a 1.1% beat, so recent surprises have been small. The next report is due February 10, 2027, with analysts expecting EPS of $3.42. The consensus for 2026 EPS has held at $13.08 over the last 30 days among 14 analysts, and revenue estimates have barely moved either. Of the 37 analysts covering the stock, 25 recommend buying, 12 holding and none selling. The test is whether earnings keep outpacing revenue growth.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.