Tuya (TUYA) AI Stock Analysis

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Tuya

(NYSE:TUYA)

Rating:68Neutral

Price Target:

$3.00

▲(11.52%Upside)

Tuya's overall stock score reflects strong financial stability and revenue growth, bolstered by strategic advancements in AI and improved operational efficiency. However, high valuation and operational inefficiencies pose challenges. The positive outlook from the earnings call contributes significantly to the score, despite some external sector challenges.

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

Market Cap

$1.66B

Dividend Yield3.72%

Average Volume (3M)2.33M

Price to Earnings (P/E)83.2

Beta (1Y)1.09

Revenue Growth27.63%

EPS GrowthN/A

CountryUS

Employees1,435

SectorTechnology

Sector Strength84

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.03

Shares Outstanding539,516,660

10 Day Avg. Volume2,339,966

30 Day Avg. Volume2,329,470

Financial Highlights & Ratios

PEG Ratio0.26

Price to Book (P/B)1.10

Price to Sales (P/S)0.00

P/FCF Ratio-14.81

Enterprise Value/Market Cap0.56

Enterprise Value/Revenue0.86

Enterprise Value/Gross Profit6.60

Enterprise Value/Ebitda-3.50

Forecast

1Y Price Target

$4.20

Price Target Upside56.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

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 Earnings Call Summary

Earnings Call Date:May 20, 2025

(Q1-2025)

% Change Since: 4.26%|

Next Earnings Date:Sep 01, 2025

Earnings Call Sentiment Positive

The earnings call for Tuya Inc. highlighted strong revenue growth, record net profit, and strategic expansion in AI and smart solutions, despite challenges in the smart electronics sector and market uncertainties due to tariffs. The company demonstrated operational efficiency and received an ESG rating upgrade, contributing to a positive outlook.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Tuya Inc. achieved approximately 21% year-over-year revenue growth in Q1 2025, reaching $74.7 million.

Record GAAP Net Profit

Tuya Inc. reported a record GAAP net profit with a net profit margin of around 15%, a significant improvement year-over-year.

Robust Regional Performance

Europe accounted for about one-third of total revenue, with strong contributions from Asia Pacific, China, and Latin America, maintaining a diversified revenue structure.

AI and Smart Solutions Expansion

The launch of Tuya's AI agent development platform and smart solutions like AI energy assistance and video AI products indicate strategic expansion in AI capabilities.

Operational Efficiency

Net operational expenses decreased by nearly 18% year-over-year, with a substantial reduction in share-based compensation expenses.

MSCI ESG Rating Upgrade

Tuya Inc.’s ESG rating was upgraded from single A to double A by MSCI, particularly excelling in secure and compliance fields.

Negative Updates

Challenges in the Smart Electronics Sector

The smart consumer electronics sector faced immense challenges due to geopolitical pressures and trade fluctuations, impacting upstream and downstream supply chains.

Tariff-Induced Market Uncertainties

The introduction of new tariffs led to short-term uncertainties and conservative behavior among international trading partners, affecting demand cycles.

Company Guidance

During Tuya Inc.'s first quarter 2025 earnings call, several key metrics were highlighted. The company reported a 21.1% year-over-year revenue growth, reaching approximately $74.7 million. The net profit margin stood at around 15%, with a non-GAAP net profit of $19.3 million, marking a 60% increase year-over-year. The company maintained a blended gross margin of about 48.5%, with SaaS gross margin reaching 74.4%. Regional revenue contributions included Europe at one-third of total revenue, while Asia Pacific, excluding China, China, and Latin America each contributed around 15%. Operational expenses decreased by nearly 18% from the previous year, largely due to reduced share-based compensation expenses. Looking ahead, Tuya emphasized its strategic focus on AI capabilities, with significant developments including the Tuya AI agent development platform, aiming to enhance smart consumer electronics and AIoT products globally.

Tuya Financial Statement Overview

Summary

Tuya's financial performance is marked by strong revenue growth of 29.8% and improved cash flow, coupled with robust equity and low debt. However, operational inefficiencies remain due to negative EBIT and EBITDA margins, which impacts profitability.

Income Statement

Positive

Tuya has shown significant revenue growth from $229.99M to $298.62M (29.8% increase) in the past year, indicating strong top-line growth. Gross profit margin improved to 47.4%, showing efficient cost management despite operating losses. However, the net profit margin remains low at 1.7% due to negative EBIT and EBITDA margins (-15.9% and -14.4%, respectively), reflecting operational inefficiencies.

Balance Sheet

Positive

The balance sheet is robust with a high equity ratio of 91.2%, signifying strong financial stability and low reliance on debt financing. The debt-to-equity ratio is minimal at 0.005, indicating low leverage. Return on equity has turned positive to 0.5%, an improvement from negative figures in previous years, suggesting a turnaround in profitability.

Cash Flow

Positive

Cash flow statements reflect a strong improvement in free cash flow, which rose significantly from $34.94M to $80.35M, indicating enhanced liquidity. Operating cash flow to net income ratio is favorable, highlighting efficient cash management. However, the reliance on financing activities has decreased cash inflows from financing, indicating a more self-sustained cash flow position.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
298.62M	229.99M	208.17M	302.08M	179.87M
	Gross Profit
141.43M	106.66M	89.42M	127.87M	61.94M
	EBIT
-47.62M	-105.82M	-168.19M	-183.56M	-69.85M
	EBITDA
-42.87M	-99.28M	-159.98M	-173.21M	-64.16M
	Net Income Common Stockholders
5.00M	-60.31M	-146.18M	-175.42M	-66.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
847.87M	789.71M	954.29M	1.07B	179.77M
	Total Assets
1.10B	1.07B	1.06B	1.25B	267.32M
	Total Debt
4.65M	7.79M	9.14M	21.75M	12.01M
	Net Debt
-648.68M	-490.90M	-124.02M	-942.19M	-146.78M
	Total Liabilities
96.33M	95.83M	93.97M	134.49M	98.32M
	Stockholders Equity
1.01B	970.57M	962.17M	1.11B	169.00M
Cash Flow		Free Cash Flow
67.25M	34.94M	-71.36M	-132.30M	-52.41M
	Operating Cash Flow
80.35M	36.44M	-70.65M	-126.10M	-49.21M
	Investing Cash Flow
107.43M	332.45M	-714.23M	-112.96M	-7.85M
	Financing Cash Flow
-33.20M	-2.22M	-38.58M	1.04B	-172.00K

Tuya Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.69

Price Trends

50DMA

2.42

Positive

100DMA

2.81

Negative

200DMA

2.21

Positive

Market Momentum

MACD

0.06

Negative

RSI

55.80

Neutral

STOCH

63.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TUYA, the sentiment is Positive. The current price of 2.69 is above the 20-day moving average (MA) of 2.61, above the 50-day MA of 2.42, and above the 200-day MA of 2.21, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TUYA.

Tuya Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	77 Outperform	$8.42B	32.13	30.28%	―	27.39%	115.40%
TUYA	68 Neutral	$1.66B	83.23	1.98%	3.72%	27.63%	―
KVYO	68 Neutral	$9.39B	―	-4.73%	―	33.95%	87.03%
KLTR	64 Neutral	$319.53M	―	-89.29%	―	2.40%	54.99%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
BLZE	59 Neutral	$306.89M	―	-74.75%	―	21.81%	28.80%

* Technology Sector Average

Performance Comparison

TUYA

Tuya

2.73

1.05

62.50%

FOUR

Shift4 Payments

95.53

23.89

33.35%

KLTR

Kaltura

2.07

0.89

75.42%

BLZE

Backblaze

5.43

-0.67

-10.98%

KVYO

Klaviyo, Inc. Class A

33.61

10.87

47.80%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.