Tyler Technologies, Inc. (TYL): The Operating System of State & Local Governments

On this episode of Stock Spotlight, Michael shines the spotlight on Tyler Technologies ($TYL), the largest pure-play provider of public sector software. Think of Tyler as the “operating system of state & local governments” — powering tax collection, court systems, payroll, permitting, and digital citizen services across 13,000+ client sites. With 98% retention and 85% recurring revenue, it’s a mission-critical business that governments simply can’t run without.Michael breaks down why Tyler scored a modest 53% on his Quality Checklist and a decent 6/9 on the Quality Growth Profile, how SaaS migration and payments (via its NIC acquisition) provide secular tailwinds, and why its 2030 roadmap — 90%+ recurring revenue and margin expansion — may prove both ambitious and achievable. He also walks through key KPIs to track, from SaaS mix to adjusted ROIC and explains why valuation remains the biggest sticking point: a $520 share price vs. ~$320 fair value in his DCF. Hear why Tyler stays on the watch list for now and why the $450–$480 technical support zone could provide a more attractive entry.----------------------------------------------------------------00:00 Intro00:38 Investment Checklist & Database01:41 Business Overview12:30 Industry Overview17:42 Quality Growth Profile20:39 Financial Statement Overview28:08 Leadership & Incentives35:00 KPIs to Track36:39 Valuation & Technical Analysis42:17 Verdict44:12 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://twitter.com/invest091Subscribe to my YouTube channel: https://www.youtube.com/@stockspotlightpodcast----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.