Tuya (TUYA) AI Stock Analysis

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Tuya

(NYSE:TUYA)

65Neutral

Tuya's overall stock score of 65 reflects a company in transition. Strong revenue growth and robust financial stability are offset by operational inefficiencies and a high valuation, as indicated by the P/E ratio. The positive earnings call sentiment boosts confidence in future performance, especially with advancements in AI and IoT. However, the stock's current technical indicators suggest cautious optimism due to potential overvaluation.

Tuya (TUYA) vs. S&P 500 (SPY)

Market Cap

$1.34B

Dividend Yield3.01%

Average Volume (3M)3.44M

Price to Earnings (P/E)237.6

Beta (1Y)0.77

Revenue Growth29.84%

EPS GrowthN/A

CountryUS

Employees1,465

SectorTechnology

Sector Strength51

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)<0.01

Shares Outstanding504,387,300

10 Day Avg. Volume2,977,288

30 Day Avg. Volume3,438,856

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)8.72

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.20

Price Target Upside107.92% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Tuya Business Overview & Revenue Model

Company DescriptionTuya Inc. (TUYA) is a global platform for IoT (Internet of Things) that enables developers to easily connect, manage, and integrate smart devices. The company operates in the technology sector, providing a cloud-based and AI-driven platform that empowers businesses and developers to rapidly and efficiently develop IoT solutions. Tuya offers a range of services including product development, cloud services, and app development, catering to various industries such as smart home, smart business, and smart cities.

How the Company Makes MoneyTuya primarily generates revenue through its platform-as-a-service (PaaS) and software-as-a-service (SaaS) offerings. The company provides a suite of IoT services and solutions that developers and businesses can utilize to bring smart products to market. Tuya charges fees for using its cloud infrastructure, development tools, and data analytics services. Additionally, the company partners with device manufacturers and service providers, earning revenues from licensing and integration fees. Tuya's extensive network of partnerships with hardware companies helps expand its market reach and drives further adoption of its IoT solutions.

Tuya Financial Statement Overview

Summary

Overall, Tuya shows promising revenue growth and strong cash flow management, but profitability remains a challenge with persistent net losses. The balance sheet is healthy with low leverage and high equity, positioning the company well for future growth if profitability can be improved.

Income Statement

Positive

Tuya has shown a positive revenue growth with a 22.17% increase in TTM compared to the previous year. The gross profit margin improved to 47.21% in the TTM, which is a good sign of efficiency. However, the company remains unprofitable with a negative net profit margin of -5.55%. EBITDA and EBIT margins are also negative, indicating profitability challenges.

Balance Sheet

Positive

The balance sheet is strong with a high equity ratio of 88.69%, reflecting a solid capital structure. The debt-to-equity ratio is low at 0.005, indicating minimal leverage. However, the ROE is negative at -1.58%, suggesting inefficiencies in generating returns for shareholders.

Cash Flow

Positive

Tuya's cash flow is robust with a substantial increase in free cash flow by 130.19% in the TTM. The operating cash flow to net income ratio is favorable at 5.25, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also positive, at 5.15, showing good cash flow management.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
280.97M	229.99M	208.17M	302.08M	179.87M	105.79M
	Gross Profit
132.66M	106.66M	89.42M	127.87M	61.94M	27.79M
	EBIT
-72.94M	-105.82M	-168.19M	-183.56M	-69.85M	-73.44M
	EBITDA
-66.22M	-99.28M	-159.98M	-173.21M	-64.16M	-70.04M
	Net Income Common Stockholders
-15.60M	-60.31M	-146.18M	-175.42M	-66.91M	-70.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
230.07M	789.71M	954.29M	1.07B	179.77M	229.92M
	Total Assets
279.40M	1.07B	1.06B	1.25B	267.32M	279.40M
	Total Debt
5.21M	7.79M	9.14M	21.75M	12.01M	8.97M
	Net Debt
-208.05M	-490.90M	-124.02M	-942.19M	-146.78M	-204.28M
	Total Liabilities
55.83M	95.83M	93.97M	134.49M	98.32M	389.50M
	Stockholders Equity
223.57M	970.57M	962.17M	1.11B	169.00M	-110.09M
Cash Flow		Free Cash Flow
80.43M	34.94M	-71.36M	-132.30M	-52.41M	-59.05M
	Operating Cash Flow
81.93M	36.44M	-70.65M	-126.10M	-49.21M	-56.56M
	Investing Cash Flow
361.63M	332.45M	-714.23M	-112.96M	-7.85M	8.49M
	Financing Cash Flow
-16.00K	-2.22M	-38.58M	1.04B	-172.00K	174.23M

Tuya Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.02

Price Trends

50DMA

3.22

Negative

100DMA

2.51

Negative

200DMA

2.01

Positive

Market Momentum

MACD

-0.03

Positive

RSI

39.55

Neutral

STOCH

9.92

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TUYA, the sentiment is Negative. The current price of 2.02 is below the 20-day moving average (MA) of 3.01, below the 50-day MA of 3.22, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 9.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TUYA.

Tuya Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	75 Outperform	$6.96B	25.51	31.22%	―	29.86%	128.19%
KVYO	71 Outperform	$7.40B	―	-4.74%	―	34.29%	86.52%
TUYA	65 Neutral	$1.34B	237.65	0.51%	3.01%	29.84%	―
KLTR	59 Neutral	$302.11M	―	-114.48%	―	2.02%	36.61%
Sector *	57 Neutral	$19.95B	9.66	-12.05%	2.76%	5.40%	-24.89%
BLZE	52 Neutral	$247.61M	―	-79.20%	―	25.10%	32.52%

* Technology Sector Average

Performance Comparison

TUYA

Tuya

2.02

0.47

30.32%

FOUR

Shift4 Payments

78.09

16.17

26.11%

KLTR

Kaltura

1.96

0.76

63.33%

BLZE

Backblaze

4.56

-4.52

-49.78%

KVYO

Klaviyo, Inc. Class A

27.10

3.64

15.52%

Tuya Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -41.95% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call highlights Tuya Inc.'s strong financial performance in 2024, marked by record revenue growth, profitability, and a robust cash position. The company demonstrated significant strides in AI and IoT innovations and expanded its developer ecosystem. While there are challenges, such as legacy share-based compensation expenses and volatility in smart device distribution, the positive aspects significantly outweigh these concerns.

Highlights

Record-Breaking Revenue Growth

Tuya Inc. achieved nearly 30% year-over-year revenue growth in 2024, marking the company's first annual GAAP net profit and non-GAAP operating profitability.

Strong Fourth Quarter Performance

In Q4 2024, Tuya Inc. reported $82 million in revenue, a 27.4% year-over-year growth, and a 25.7% increase in PaaS revenue, showcasing solid market momentum.

Expansion of Smart Solutions

Smart solution revenue grew by 45.5% year-over-year, driven by high demand in categories such as energy efficiency solutions.

Strong Cash Flow and Liquidity Position

Tuya Inc. generated $80.4 million in positive operating cash flow for 2024 and ended Q4 with a net cash balance of over $1 billion.

Commitment to AI and IoT Innovations

Tuya Inc. launched the AI large model and spatial large language model in 2024, enhancing smart product experiences and competitiveness.

Developer Ecosystem Growth

The number of registered developers reached 1.32 million, with over 1.07 million SKUs of smart devices developed on the platform.

Lowlights

Impact of Legacy Share-Based Compensation

The company faces ongoing expenses from legacy share-based compensation grants, impacting the income statement until 2025.

Volatility in Smart Device Distribution

There has been volatility in smart device distribution growth, affecting the overall gross margin.

Company Guidance

During Tuya Inc.'s Q4 2024 earnings call, the company reported a strong performance with approximately $82 million in revenue, marking a 27.4% year-over-year growth. The PaaS segment generated $59.3 million, achieving a 25.7% increase from the previous year, while smart solution revenue surged by 45.5% to $11.3 million. For the full year 2024, total revenue reached $298.6 million, reflecting a nearly 30% increase compared to 2023. Tuya Inc. also achieved its first-ever annual GAAP net profit and a non-GAAP operating margin of 7.4%, with a 25.2% non-GAAP net profit margin. Additionally, the company reported a 47% increase in revenue per employee and a net cash balance of over $1 billion, supported by an $80.4 million positive operating cash flow for the year. Looking ahead, Tuya Inc. plans to focus on expanding its AIoT developer ecosystem, enhancing AI applications, and increasing global market penetration, particularly in regions like Europe, Latin America, and Asia Pacific.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.