Want To Invest In Tyler Technologies, Inc. (NYSE:TYL)? Here's How It Performed Lately
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After reading Tyler Technologies, Inc.'s (NYSE:TYL) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Tyler Technologies's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
View our latest analysis for Tyler Technologies
Was TYL's recent earnings decline indicative of a tough track record?
TYL's trailing twelve-month earnings (from 31 December 2018) of US$147m has declined by -13% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 30%, indicating the rate at which TYL is growing has slowed down. Why could this be happening? Let's examine what's transpiring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Tyler Technologies has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 8.3% exceeds the US Software industry of 5.7%, indicating Tyler Technologies has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Tyler Technologies’s debt level, has increased over the past 3 years from 11% to 11%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. You should continue to research Tyler Technologies to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TYL’s future growth? Take a look at our free research report of analyst consensus for TYL’s outlook.
Financial Health: Are TYL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.