Is Tyler Technologies, Inc.'s (NYSE:TYL) Recent Price Movement Underpinned By Its Weak Fundamentals?
Is Tyler Technologies, Inc.'s (NYSE:TYL) Recent Price Movement Underpinned By Its Weak Fundamentals?
Tyler Technologies (NYSE:TYL) has had a rough three months with its share price down 6.5%. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. Specifically, we decided to study Tyler Technologies' ROE in this article.
Tyler Technologies(紐約證券交易所代碼：TYL)經歷了艱難的三個月，其股價下跌了6.5%。然而，我們決定研究該公司的財務狀況，以確定它們是否與價格下跌有關。長期基本面通常是推動市場結果的因素，因此值得密切關注。具體地說，我們決定在本文中研究Tyler Technologies的ROE。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率(ROE)是對一家公司增值和管理投資者資金的效率的測試。簡而言之，它是用來評估一家公司相對於其權益資本的盈利能力。
View our latest analysis for Tyler Technologies
查看我們對Tyler Technologies的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
Return on equity can be calculated by using the formula:
股本回報率可使用以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤？股東權益
So, based on the above formula, the ROE for Tyler Technologies is:
因此，根據上述公式，Tyler Technologies的淨資產收益率為：
5.9% = US$164m ÷ US$2.8b (Based on the trailing twelve months to June 2023).
5.9%=1.64億美元×28億美元(基於截至2023年6月的12個月)。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.06 in profit.
“收益”是過去12個月的利潤。這意味著，股東權益每增加1美元，公司就會產生0.06美元的利潤。
Why Is ROE Important For Earnings Growth?
為什麼淨資產收益率對收益增長很重要？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前為止，我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。我們現在需要評估公司將多少利潤再投資或“保留”用於未來的增長，這就讓我們對公司的增長潛力有了一個瞭解。一般來說，在其他條件相同的情況下，股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
A Side By Side comparison of Tyler Technologies' Earnings Growth And 5.9% ROE
Tyler Technologies盈利增長與淨資產收益率5.9%的並列比較
On the face of it, Tyler Technologies' ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 9.8% either. Hence, the flat earnings seen by Tyler Technologies over the past five years could probably be the result of it having a lower ROE.
從表面上看，Tyler Technologies的淨資產收益率(ROE)並不值得談論。進一步的快速研究表明，該公司的淨資產收益率(ROE)也比不上9.8%的行業平均水準。因此，Tyler Technologies過去五年的收益持平可能是其淨資產收益率(ROE)較低的結果。
We then compared Tyler Technologies' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 18% in the same 5-year period, which is a bit concerning.
然後我們將Tyler Technologies的淨收入增長與行業進行了比較，發現該公司的增長數位低於同一5年期間行業平均18%的增長率，這有點令人擔憂。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is Tyler Technologies fairly valued compared to other companies? These 3 valuation measures might help you decide.
賦予一家公司價值的基礎在很大程度上與其盈利增長掛鉤。對於投資者來說，重要的是知道市場是否已經消化了公司預期的收益增長(或下降)。這有助於他們確定這只股票是為光明還是黯淡的未來做準備。與其他公司相比，Tyler Technologies的估值是否公平？這3個估值指標可能會幫助你做出決定。
Is Tyler Technologies Making Efficient Use Of Its Profits?
Tyler Technologies是否在有效利用其利潤？
Tyler Technologies doesn't pay any dividend, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.
Tyler Technologies不支付任何股息，這意味著該公司將保留所有利潤，這讓我們不禁要問，如果不能利用這些利潤來增長業務，它為什麼還要保留收益。因此，在這方面可能會有其他一些解釋。例如，該公司的業務可能正在惡化。
Summary
摘要
Overall, we have mixed feelings about Tyler Technologies. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總體而言，我們對Tyler Technologies的感受複雜。雖然該公司的再投資率確實很高，但低ROE意味著所有的再投資都沒有給投資者帶來任何好處，而且對收益增長產生了負面影響。既然如此，最新的分析師預測顯示，該公司的收益將繼續增長。這些分析師的預期是基於對該行業的廣泛預期，還是基於該公司的基本面？點擊此處進入我們分析師對該公司的預測頁面。
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本文由Simply Wall St.撰寫，具有概括性.我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議.它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況.我們的目標是為您帶來由基本面數據驅動的長期重點分析.請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內.Simply Wall St.對上述任何一隻股票都沒有持倉.