Tyler Technologies Inc – Best Software Application Stocks
Tyler Technologies is one of the leading companies when it comes to public sector software providers. It offers mission-critical software that runs government tax assessment operations, day-to-day operations of schools and other public sector offices, and also facilitates payment services of the government. The push towards digital means that government spending towards greater adoption of software and online technologies. This trend is proving to work as a nice tailwind for companies like Tyler Technologies. When most investors have their eyes and ears on the popular cloud companies and big-name tech companies, it helps to look at companies that are leaders in niche segments. Technology stocks prices of less glamorous companies may also offer a superior margin of safety. Tyler Technologies is based out of Texas but has offices in 26 locations throughout the US.
Tyler Technologies Financial Snapshot
Tyler Technologies has grown its revenue from $0.94 billion in 2018 to $1.12 billion in 2020. The company’s earnings per share on a diluted basis have also grown from $3.68 in 2018 to $4.69 in 2020. In October 2021, the price-to-earnings ratio was a lofty 128 while the price-to-book ratio was also high at 9.29. The 3-year annualized revenue growth averaged at 9.9% while the net income 3-year average growth rate was 4.7%. The public sector market for IT services is a decentralized one. There are 50 states, 3000 counties, and close to 13000 school districts in the US. The importance of a robust digital infrastructure for providing essential government services has never been higher. Such services require continual support and hand-holding and therefore local governments tend to prefer long-term engagements with reliable software service providers. The best software application stocks tend to have long-term revenue streams that are possible through such government contracts.
Tyler Technologies last traded at $479 on 12th October 2021. The 52-week high of the stock was not far at $499. The ticker symbol for Tyler Technologies is TYL on the NYSE. Over the preceding month, the stock had risen 2.86%.