What changed
$TYL — WATCHLIST 📊
Tyler Technologies, Inc. provides integrated software and technology management solutions for the public sector in the United States.
🎯 Q2 2026 | Rev $1B | EPS $3.09 vs $3.01 🟢
💡 Consensus expects steady growth and views the slight beat as positive, but my variant view is that the market is already pricing in overly optimistic growth (42x P/E on $100B cap is ~40x sales) that will be hard to sustain, and the recent beat is insufficient to re-rate the stock higher.
📉 Reward/Risk: 0.7:1
🏢 Business Quality: 8/10 - Tyler has a sticky niche, high switching costs for local governments, strong recurring revenue, and healthy margins, but the $100B market cap vastly overstates the earnings power.
📊 Valuation: rich — P/E 42.1x (trailing), EV/Sales ~40x, and FCF yield likely under 2%.
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/TYL0623
Also in play: $CNI $CP $UNP $NSC $CSX $WAB