IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3329
Positioning
Market Dominance
Services
Computer Software
$22.5B
H. Lynn Moore
Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. The company operates in three segments: Enterprise Software; Appraisal and Tax; and NIC. It offers financial management solutions, including modular fund accounting systems for government agencies or not-for-profit entities.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TYL ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | 21.3% | 18.6% | 64.5% | 35.7% | 39.5% | 6.5% | 0.0% | 0.0x | $644M | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | 15.4% | 12.6% | 38.7% | 17.1% | 17.0% | -39.7% | 0.0% | 0.0x | $439M | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 28.1% | 16.8% | 48.1% | 23.8% | 18.5% | 78.6% | 0.0% | 37.0x | $220M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | 12.4% | 2.9% | 100.0% | 28.2% | 26.2% | 5.5% | 0.8% | 264.0x | $19.4B | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.6% | 7.8% | 43.8% | 7.4% | 5.9% | 31.2% | 0.0% | 0.0x | $857M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 18.0% | 4.6% | 97.3% | 52.2% | 32.7% | -3.4% | 0.0% | 271.0x | $8.0B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | 9.4% | 4.9% | 55.5% | 8.7% | 7.7% | 13.6% | 1.3% | 7.0x | $78.0B | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | 22.1% | 15.6% | 62.5% | 28.1% | 28.7% | -1.0% | 2.8% | 9.0x | $56.6B | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 21.4% | 8.0% | 100.0% | 10.0% | 7.5% | 14.1% | 0.0% | 27.0x | $1.8B | VS | |
$TYL TYLER TECHNOLOGIES INC | 42 | 47 | 50 | 29 | 41.9x | 34.4x | 8.8% | 5.8% | 46.0% | 15.9% | 14.2% | 10.2% | 0.0% | 16.0x | $22.5B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.3% | 1.9% | 59.6% | 3.5% | 2.3% | 7.8% | 0.0% | 0.3x | - | REF |
TYLER TECHNOLOGIES INC (TYL) receives a "Reduce" rating with a composite score of 41.7/100. It ranks #3329 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
H. Lynn Moore
Chief Executive Officer
Labor Force
7,200
47
28
68
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for TYL
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for TYL.
View All RatingsNet income exceeding cash flow (Accrual bloat detected)
Material decline in asset turnover efficiency detected
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 47 | 50 | -3NEUTRAL |
| MOMENTUM | 29 | 23 | +6ALPHA |
| VALUATION | 50 | 53 | -3NEUTRAL |
| INVESTMENT | 28 | 25 | +3NEUTRAL |
| STABILITY | 68 | 73 | -5NEUTRAL |
| SHORT INT | 46 | 44 | +2NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 8.8% (sector 5.3%)
GM 46% vs sector 60%, OM 16% vs sector 4%
Capital turnover N/A
Rev growth 10%, 10yr history
Interest coverage 289.6x, Net debt/EBITDA -0.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
TYLER TECHNOLOGIES INC receives a Reduce rating from our analysis, with a composite score of 41.7/100 and 2 out of 5 stars, ranking #3329 out of 7,333 stocks. TYL's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 47/100, TYL shows adequate but unremarkable business quality. The company reports a return on equity of 8.8% (sector avg: 5.3%), gross margins of 46.0% (sector avg: 59.6%), net margins of 14.2% (sector avg: 2.3%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
TYL's value score of 50/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 41.85x, an EV/EBITDA of 34.42x, a P/B ratio of 3.68x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
TYLER TECHNOLOGIES INC's investment score of 28/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 10.2% vs. a sector average of 7.8% and a return on assets of 5.8% (sector: 1.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
TYLER TECHNOLOGIES INC is experiencing notably weak momentum with a score of just 29/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 10.2% year-over-year, while a beta of 0.68 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
TYL shows good financial stability with a score of 68/100. Key stability metrics include a beta of 0.68 and a debt-to-equity ratio of 16.00x (sector avg: 0.3x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 46/100 for TYL suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 16.00x). With a $22.5B market cap (large-cap), TYLER TECHNOLOGIES INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
TYLER TECHNOLOGIES INC is a large-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #3329 of 7,333 overall (55th percentile). Key comparisons include ROE of 8.8% exceeding the 5.3% sector median and operating margins of 15.9% above the 3.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While TYL currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Upgrade catalyst
Improvement in Investment (28) would have the largest impact on the composite score.
EV/EBITDA 193% ABOVE SECTOR MEDIAN
ROE 66% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 23% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate TYLER TECHNOLOGIES INC (TYL) as a Reduce with a composite score of 41.7/100 at a current price of $325.13. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (68th percentile) and value (50th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (28th percentile) and momentum (29th percentile) tempers our overall conviction. We assign a Narrow Moat rating (50/100), Low uncertainty, and Standard capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
TYLER TECHNOLOGIES INC holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 41.7/100 places it at rank #3329 in our full 7,333-stock universe. With a $22.5B market capitalization, TYLER TECHNOLOGIES INC operates at meaningful scale within the Services sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 10%, though momentum at the 29th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 46% (-13.6pp vs sector) narrow to operating margins of 16% (+12.4pp vs sector) and net margins of 14.2%, yielding a gross-to-net conversion rate of 31%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $325.13, TYLER TECHNOLOGIES INC is trading near fair value based on current fundamentals. Our value factor score of 50/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 41.9x (a 76% premium to the sector median of 23.7x), EV/EBITDA of 34.4x (at a premium), P/B of 3.7x, P/S of 5.9x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.
Gross margins of 46% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Revenue growth of 10% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
A conservative balance sheet (16% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Reduce rating (composite 41.7/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
A P/E of 41.9x leaves little room for execution misses — any earnings disappointment could trigger a sharp multiple compression.
We assign a Low uncertainty rating to TYLER TECHNOLOGIES INC. The company exhibits strong financial stability with a beta of 0.68, conservative leverage (16% D/E), and a stability factor in the 68th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: low beta of 0.68 — while defensive, this may indicate limited upside participation in bull markets; elevated valuation multiple (P/E 41.9x) that leaves limited margin for error. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 68th percentile and quality factor at the 47th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 46% provide a buffer against cost pressures; conservative leverage (16% D/E) limits balance sheet risk; above-average stability (68th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate TYLER TECHNOLOGIES INC's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 8.8%, and the balance sheet is managed within acceptable parameters (D/E: 16%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; TYLER TECHNOLOGIES INC falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, TYLER TECHNOLOGIES INC receives a Reduce rating with a composite score of 41.7/100 (rank #3329 of 7,333). Our quantitative framework assigns a Narrow Moat (50/100, trend: stable), Low uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 44/100.
Our analysis does not support a constructive view on TYLER TECHNOLOGIES INC at this time. The combination of the current quantitative profile, low uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign TYLER TECHNOLOGIES INC a Narrow Moat rating with a composite moat score of 50/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that TYLER TECHNOLOGIES INC can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being financial resilience at 17.5/20.
The strongest moat sources are financial resilience (17.5/20) and growth durability (13/20). Interest coverage 289.6x, Net debt/EBITDA -0.7x. Rev growth 10%, 10yr history. These pillars form the core of TYLER TECHNOLOGIES INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (7.1/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect TYLER TECHNOLOGIES INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 46% providing a solid profitability foundation, operating margins of 16% reflecting effective cost management, moderate revenue growth of 10%. The margin cascade from 46% gross to 16% operating to 14.2% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 47th percentile.
The margin profile shows gross margins of 46%, operating margins of 16%, net margins of 14.2%. Return metrics include ROE of 8.8% and ROA of 5.8%. Relative to the Services sector, gross margins are 13.6 percentage points below the sector median of 60%, and ROE of 8.8% compares to a sector median of 5.3%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 16%, revenue growth of 10%. The sector median D/E is 0%, putting TYLER TECHNOLOGIES INC at higher leverage than the typical peer. The combination of low leverage and healthy profitability provides significant financial resilience and strategic optionality.
Weak momentum (29th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
Above 50MA
37.18%
Net New Highs
+51081
AppLovin, an adtech company, was added to the S&P 500 in September 2025 after significant growth driven by its Axon 2.0 AI software. While S&P 500 inclusion doesn't guarantee future performance, the company shows promising growth potential by expanding beyond mobile gaming into e-commerce and connected TV advertising.
The article explores 10 lesser-known technology stocks with significant growth potential across sectors like cybersecurity, cloud computing, data analytics, and emerging technologies like quantum computing.
Tyler (TYL) expands its manufacturing capability by opening a new production facility at Kingston Springs, TN.
Tyler Technologies (TYL) ties up with Champ Titles and New Jersey Motor Vehicle Commission to unveil electronic lien and vehicle titling service to replace lengthy paperwork with digitized processes.