Tuya (TUYA) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 4.71%
• Average Volume (3M): 971.37K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.17
• Revenue Growth: 13.36%
• EPS Growth: N/A
• Country: US
• Employees: 1,435
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 539,516,660
• 10 Day Avg. Volume: 1,003,150
• 30 Day Avg. Volume: 971,372
• PEG Ratio: -1.90
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 3.44
• P/FCF Ratio: 13.48
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: -22.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $2.50 ▲(13.12% Upside)

The score is driven primarily by solid financial quality (strong balance sheet and improving cash flow) and a favorable earnings update highlighting higher profitability and strong liquidity. Offsetting factors include only modest revenue growth, mixed profitability signals in the financial statements, and a lukewarm technical picture with limited momentum. Valuation is balanced by a high P/E despite an attractive dividend yield.

Positive Factors

Strong Cash Flow

The significant growth in operating cash flow indicates robust cash generation, enhancing liquidity and enabling strategic investments.

AI Integration

High AI integration in products positions Tuya as a leader in smart technology, driving innovation and competitive advantage in the IoT sector.

Low Debt Levels

Minimal leverage reduces financial risk, providing stability and flexibility to pursue growth opportunities without significant debt burden.

Negative Factors

Minimal Revenue Growth

Slow revenue growth suggests challenges in market expansion and demand, potentially impacting long-term growth prospects and investor confidence.

Profitability Challenges

Persistent profitability issues indicate operational inefficiencies, which could hinder the company's ability to reinvest in growth and innovation.

Smart Solutions Revenue Decline

Declining revenue in key segments like Smart Solutions may signal competitive pressures or market saturation, affecting future revenue streams.

Tuya Business Overview & Revenue Model

Company Description

Tuya Inc. develops Internet of Things (IoT) cloud platform worldwide. The company provides IoT Platform-as-a-Service that enables brands, original equipment manufacturers, and developers to develop, launch, manage, and monetize smart devices and services; industry Software-as-a-Service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers a wide range of cloud-based value-added services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company sells finished smart devices. It offers its solutions to smart home, smart business, healthcare, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

How the Company Makes Money

Tuya generates revenue through a multi-faceted business model that primarily includes service fees from its cloud platform and IoT solutions. Key revenue streams consist of subscription fees for cloud services, licensing fees from manufacturers for utilizing Tuya's technology in their products, and transaction fees from sales made through their marketplace. Additionally, Tuya has established significant partnerships with numerous manufacturers and brands, enhancing its ecosystem and driving volume sales, which contribute to its earnings. The company's focus on enabling smart home solutions and its ability to provide a comprehensive platform for IoT development further solidify its revenue-generating capabilities.

Tuya Financial Statement Overview

Summary

Solid fundamentals supported by very low leverage (debt-to-equity 0.0042) and improving cash generation (free cash flow growth 8.46% TTM; operating cash flow to net income 0.89). Revenue growth is positive but modest (2.29% TTM), and profitability remains mixed with negative EBIT/EBITDA margins despite improved net margin (9.12% TTM).

Income Statement

Tuya's income statement shows a positive trajectory with a consistent increase in revenue over the years, highlighted by a 2.29% growth in the TTM period. The gross profit margin is healthy at 47.65%, indicating efficient cost management. However, the company struggles with profitability as reflected in the negative EBIT and EBITDA margins, although the net profit margin has improved to 9.12% in the TTM, suggesting better control over expenses.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.0042, indicating minimal leverage and financial risk. The return on equity has improved to 2.91% in the TTM, showing better utilization of equity to generate profits. The equity ratio stands at a robust level, reflecting a solid capital structure. However, the company needs to further enhance its profitability to maximize shareholder value.

Cash Flow

Tuya's cash flow statement is promising with a significant improvement in free cash flow growth at 8.46% in the TTM. The operating cash flow to net income ratio is strong at 0.89, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 1.0, demonstrating that the company is generating sufficient cash to cover its net income, which is a positive sign for liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	318.49M	298.62M	229.99M	208.17M	302.08M	179.87M
Gross Profit	151.89M	141.43M	106.66M	89.42M	127.87M	61.94M
EBITDA	-20.66M	-42.55M	-99.28M	-159.98M	-173.21M	-64.16M
Net Income	29.06M	5.00M	-60.31M	-146.18M	-175.42M	-66.91M
Balance Sheet
Total Assets	1.10B	1.10B	1.07B	1.06B	1.25B	267.32M
Cash, Cash Equivalents and Short-Term Investments	834.41M	847.87M	789.71M	954.29M	1.07B	179.77M
Total Debt	4.21M	4.65M	7.79M	9.14M	21.75M	12.01M
Total Liabilities	93.74M	96.33M	95.83M	93.97M	134.49M	431.99M
Stockholders Equity	1.01B	1.01B	970.57M	962.17M	1.11B	-164.67M
Cash Flow
Free Cash Flow	0.00	76.21M	34.91M	-71.28M	-132.47M	-52.50M
Operating Cash Flow	81.64M	80.39M	36.41M	-70.57M	-126.27M	-49.30M
Investing Cash Flow	97.51M	107.48M	332.17M	-713.38M	-113.11M	-7.87M
Financing Cash Flow	-70.35M	-33.22M	-2.22M	-38.54M	1.04B	-172.30K

Tuya Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.21 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.21, and below the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TUYA.

Tuya Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	79 Outperform	$1.25B	25.96	23.88%	1.33%	10.27%	3.52%
RAMP	75 Outperform	$1.55B	40.19	4.10%	―	10.13%	1280.04%
TUYA	67 Neutral	$1.31B	25.90	4.87%	4.71%	13.36%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RZLV	43 Neutral	$1.03B	―	―	―	―	―

Tuya Corporate Events

Tuya Details December 2025 Share Capital Movements and Equity Incentive Activity

On January 7, 2026, Tuya Inc. reported to the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange the movements in its share capital for December 2025, confirming that its total authorised share capital remained at 1 billion WVR ordinary shares (Class A and B combined) with an aggregate par value of USD 50,000. During December 2025, Tuya’s issued Class A share count increased modestly by 56,250 shares to 541,364,923, driven mainly by the vesting of restricted share units under its 2015 Equity Incentive Plan, while 59,097 options were exercised and settled using shares already held by the company’s depositary bank rather than new issuances, and 5,400 Class A shares were repurchased on December 30 and 31 but had not yet been cancelled by month‑end. The filings also show that, as of December 31, 2025, Tuya had granted restricted share units representing 2,718,875 Class A shares under the 2015 plan and 339,000 Class A shares under the 2024 Share Scheme, with a further 57,080,259 shares available to be issued or transferred upon future exercises or vesting, highlighting the scale of its equity-based compensation and the potential for future dilution alongside ongoing share repurchase activity.

The most recent analyst rating on (TUYA) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Tuya stock, see the TUYA Stock Forecast page.

Tuya Inc. Reports Stable Share Capital Movements for November 2025

On December 3, 2025, Tuya Inc. submitted a monthly return form to The Stock Exchange of Hong Kong Limited, detailing the movements in its authorized share capital and issued shares for November 2025. The report highlights that there were no changes in the number of authorized or issued shares for both Class A and Class B WVR ordinary shares during the month. Additionally, the exercise of 67,000 options was settled using existing Class A ordinary shares, and no new shares were issued. These movements reflect Tuya’s stable share capital structure, which may reassure stakeholders about the company’s financial management and adherence to regulatory requirements.

The most recent analyst rating on (TUYA) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Tuya stock, see the TUYA Stock Forecast page.

Tuya Inc. Reports Strong Q3 2025 Financial Performance

Tuya Inc. announced its unaudited financial results for the third quarter ended September 30, 2025, showing a revenue increase to $82.5 million, a 1.1% rise year-over-year. The company reported a significant improvement in its financial metrics, with a gross margin increase to 48.3% and a net profit of $15.0 million, compared to a loss in the previous year. The results highlight Tuya’s strong execution and resilience amid global trade uncertainties, with a focus on deepening customer relationships and advancing product innovation.

The most recent analyst rating on (TUYA) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Tuya stock, see the TUYA Stock Forecast page.

Tuya Inc. Reports October 2025 Share Capital Changes

Tuya Inc. reported changes in its share capital for October 2025, submitting relevant forms to the Hong Kong Stock Exchange. The company maintained its authorized share capital and issued shares, with notable movements in its Class A ordinary shares, including an increase of 287,500 shares. These changes reflect Tuya’s ongoing efforts to manage its equity structure, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TUYA) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Tuya stock, see the TUYA Stock Forecast page.