Tuya (TUYA) AI Stock Analysis

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Tuya

(NYSE:TUYA)

Rating:73Outperform

Price Target:

$3.00

▲(19.05% Upside)

Tuya's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting revenue growth and profitability improvements. However, technical indicators and valuation suggest caution due to potential overvaluation and lack of clear market momentum.

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

Market Cap

$1.55B

Dividend Yield4.32%

Average Volume (3M)1.74M

Price to Earnings (P/E)52.1

Beta (1Y)0.99

Revenue Growth22.46%

EPS GrowthN/A

CountryUS

Employees1,435

SectorTechnology

Sector Strength84

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.03

Shares Outstanding539,516,660

10 Day Avg. Volume2,790,758

30 Day Avg. Volume1,741,996

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.37

Enterprise Value/Revenue1.86

Enterprise Value/Gross Profit3.91

Enterprise Value/Ebitda-18.07

Forecast

1Y Price Target

$3.30

Price Target Upside30.95% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Tuya Business Overview & Revenue Model

Company DescriptionTuya 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 MoneyTuya Inc. primarily generates revenue through its cloud platform services, which include subscription fees for access to its IoT development tools and platform capabilities. The company also earns revenue from charging device activation fees when smart devices integrated with its platform are activated. Additionally, Tuya offers value-added services such as advanced data analytics and Artificial Intelligence (AI) capabilities, which are provided to businesses seeking to enhance their IoT products and user experiences. Strategic partnerships with major technology companies and ongoing collaborations with manufacturers and brands further contribute to Tuya's revenue streams by expanding its market reach and facilitating the adoption of its platform across diverse industries.

Tuya Earnings Call Summary

Earnings Call Date:Aug 26, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 24, 2025

Earnings Call Sentiment Positive

The earnings call highlights a strong financial performance with significant revenue growth, profitability, and expansion in the AI developer platform. However, it is tempered by challenges due to global trade uncertainties and regional market pressures.

Q2-2025 Updates

Positive Updates

Revenue Growth

Tuya generated Q2 2025 revenues of approximately USD 80.1 million, an increase of 9.3% year-over-year, with a first half revenue of USD 155 million, representing about 15% year-over-year growth.

Profitability and Margins

Non-GAAP operating profit grew by approximately 127% year-over-year, achieving a 10% non-GAAP operating margin and 25% net margin. The blended gross margin remained around 48%, with PaaS gross margin reaching a historical height of 48.7%.

AI Developer Platform Expansion

At the end of Q2, the number of global developers on Tuya's platform reached over 1.51 million, with 93% of Tuya's shipped product categories equipped with AI capabilities.

Cash Flow and Dividend

Strong operating cash flow of over USD 18 million in Q2, with a net cash balance above USD 1 billion. A cash dividend totaling about USD 33 million was approved by the Board.

Negative Updates

Global Trade Uncertainties

U.S. tariff policy significantly disrupted the global discretionary consumer electronics industry, leading to delays and adjustments in operations by downstream retail channel brands, importers, and exporters.

Regional Market Challenges

Uncertainties in the U.S. tariff situation are causing pressure on consumer electronic categories, with a noted risk of decline in demand following retail price increases.

Company Guidance

During Tuya Inc.'s Second Quarter 2025 Earnings Conference Call, the company reported a revenue of approximately USD 80.1 million, reflecting a year-over-year growth of 9.3%. Despite global trade uncertainties and U.S. tariff impacts, the company maintained a robust blended gross margin of around 48% for both the second quarter and the first half of the year. The non-GAAP operating margin reached 10%, with a substantial year-over-year growth of 127% in non-GAAP operating profit. The company also achieved a 25% net margin for the quarter. Tuya's PaaS segment saw a 7% growth, while Smart Solutions and SaaS and others grew by 16.7% and 15.6%, respectively. Regionally, Europe experienced double-digit growth in niche categories, and Tuya's AI developer platform supported 150 million interactions daily. The company aims to continue its focus on AI innovations and developer engagement to drive long-term growth and maintain shareholder value, announcing a cash dividend of about USD 33 million as part of its strategy to return value to shareholders.

Tuya Financial Statement Overview

Summary

Tuya demonstrates strong revenue growth and a robust balance sheet with low leverage. However, profitability remains a challenge with a negative EBIT margin, indicating the need for improved cost control and operational efficiency.

Income Statement

Positive

Tuya has shown significant revenue growth, moving from $179.87 million in 2020 to $311.64 million in TTM 2025, indicating strong upward momentum. The gross profit margin improved to 47.55% in TTM 2025, reflecting efficient cost management. However, the company still faces profitability challenges, evidenced by a negative EBIT margin of -10.49% in TTM 2025. Overall, Tuya's revenue trajectory is promising, but profitability remains an area for improvement.

Balance Sheet

Very Positive

Tuya maintains a robust financial position with a high equity ratio of 88.52% in TTM 2025, suggesting a strong reliance on equity financing. The debt-to-equity ratio is low at 0.005, which minimizes financial risk. With a positive return on equity of 1.98% in TTM 2025, the company is improving its shareholder value, though there is room for further enhancement.

Cash Flow

Positive

Tuya's operating cash flow has turned positive, reaching $75.21 million in TTM 2025, demonstrating effective cash management. The free cash flow also shows positive growth, enhancing financial flexibility. However, the operating cash flow to net income ratio of 3.84 indicates reliance on non-operational influences, suggesting the need for sustained operational profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	311.64M	298.62M	229.99M	208.17M	302.08M	179.87M
Gross Profit	148.20M	141.43M	106.66M	89.42M	127.87M	61.94M
EBITDA	-32.09M	-42.87M	-99.28M	-159.98M	-173.21M	-64.16M
Net Income	19.56M	5.00M	-60.31M	-146.18M	-175.42M	-66.91M
Balance Sheet
Total Assets	1.12B	1.10B	1.07B	1.06B	1.25B	267.32M
Cash, Cash Equivalents and Short-Term Investments	853.77M	847.87M	789.71M	954.29M	1.07B	179.77M
Total Debt	5.24M	4.65M	7.79M	9.14M	21.75M	12.01M
Total Liabilities	128.39M	96.33M	95.83M	93.97M	134.49M	98.32M
Stockholders Equity	990.02M	1.01B	970.57M	962.17M	1.11B	169.00M
Cash Flow
Free Cash Flow	75.21M	67.25M	34.94M	-71.36M	-132.30M	-52.41M
Operating Cash Flow	75.21M	80.35M	36.44M	-70.65M	-126.10M	-49.21M
Investing Cash Flow	192.42M	107.43M	332.45M	-714.23M	-112.96M	-7.85M
Financing Cash Flow	-33.45M	-33.20M	-2.22M	-38.58M	1.04B	-172.00K

Tuya Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.52

Price Trends

50DMA

2.47

Positive

100DMA

2.45

Positive

200DMA

2.48

Positive

Market Momentum

MACD

0.03

Negative

RSI

50.47

Neutral

STOCH

21.98

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 2.52 is above the 20-day moving average (MA) of 2.51, above the 50-day MA of 2.47, and above the 200-day MA of 2.48, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 21.98 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TUYA	73 Outperform	$1.55B	52.07	2.89%	4.32%	22.46%	―
FOUR	73 Outperform	$7.74B	32.46	19.00%	―	23.86%	79.35%
BLZE	66 Neutral	$490.98M	―	-69.83%	―	19.08%	28.99%
KVYO	63 Neutral	$9.34B	―	-6.42%	―	33.17%	82.85%
Sector *	61 Neutral	$35.55B	8.88	-11.05%	1.87%	8.55%	-8.14%
KLTR	56 Neutral	$228.65M	―	-94.40%	―	2.56%	59.00%
FAAS	―	$13.17M	―		―	―	―

* Technology Sector Average

Performance Comparison

TUYA

Tuya

2.52

1.18

88.06%

FOUR

Shift4 Payments

87.59

11.47

15.07%

KLTR

Kaltura

1.46

0.30

25.86%

FAAS

DigiAsia

0.22

-1.39

-86.34%

BLZE

Backblaze

8.70

2.89

49.74%

KVYO

Klaviyo, Inc. Class A

32.19

2.07

6.87%

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.Date of analysis: Sep 06, 2025