Tyler Technologies, Inc. (TYL)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of paying up for a good business, and Tyler looks like a good business trading at a demanding price. It sells mission-critical public-sector software, which tends to be sticky, and the filed numbers show steady progress: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $645.1 million, net income $93.5 million, and diluted EPS $2.23, up about 8.2%, 10.5%, and 15.5% respectively from fiscal Q2 2025. Fiscal 2025 revenue was $2.3 billion with net income of $315.6 million and diluted EPS of $7.20. Free cash flow is $705.8 million, a 4.5% FCF yield, and the balance sheet is not stretched at D/E 0.48 with Altman Z 4.32. But at the 2026-10-26 close of $386.38, FairStock's P/E is 50.91, P/B 5.21, EV/EBITDA 28.47, PEG 4.90, and Graham Number is $112.57, leaving a -246.58% margin of safety. ROE is 9.73% and ROCE 4.18%, not high enough for me to ignore the price. Piotroski is 5/9 and the FairStock Score is 40/100. The computed Lynch category is stalwart, reflecting 10.1% five-year profit growth and 15.9% revenue growth, which is respectable but not enough to justify a very rich multiple. I would want the price to come down or returns on capital to rise before calling this a Graham-style bargain.

In plain English: Tyler Technologies sells software and technology services to government agencies. The business is profitable, growing, and produces plenty of cash, but the stock price looks high compared with its profits and assets. It does not look like a bargain on the numbers shown.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer