Professional
Added to YB: 2026-02-18
Pitch date: 2026-02-15
TYL [bullish]
Tyler Technologies, Inc.
+4.66%
current return
Author Info
Andvari Associates manages a concentrated investment strategy designed with the goal of outperforming the market. Sign up for the newsletter.
Company Info
Tyler Technologies, Inc. provides integrated software and technology management solutions for the public sector.
Market Cap
$13.1B
Pitch Price
$305.31
Price Target
N/A
Dividend
N/A
EV/EBITDA
28.09
P/E
42.21
EV/Sales
5.41
Sector
Software
Category
growth
Tyler Technologies Investment Report
TYL: Pure-play gov't software with 98% retention, 11% TAM share of $21B market. Grew revs from $50M (1998) to $2.3B (2025), 1.5-2x market rate. AI fears overblown - deep domain expertise, decades-long client relationships, data stewardship. Transitioning to cloud-first, 96% new contracts SaaS. Target 30% op margin (from 24%), $1B FCF by 2030 (from $621M). Valuation at 11-yr low: 5.5x sales, 28x EBITA. Est 11-15% 10-yr IRR despite assuming slower growth & further multiple compression. $1B buyback announced (7.8% of cap).
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