Tuya (TUYA) AI Stock Analysis

Compare

220 Followers

TUYA Dividends

Top Page

Tuya

(NYSE:TUYA)

66Neutral

Tuya's overall stock score reflects strong revenue growth, improved cash flow, and a robust balance sheet. However, operational inefficiencies and a very high P/E ratio are notable concerns. The positive earnings call underscores the company's growth potential in AI and IoT, enhancing the stock's appeal despite valuation challenges.

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

Market Cap

$1.48B

Dividend Yield2.62%

Average Volume (3M)2.13M

Price to Earnings (P/E)269.0

Beta (1Y)0.91

Revenue Growth29.84%

EPS GrowthN/A

CountryUS

Employees1,435

SectorTechnology

Sector Strength66

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.04

Shares Outstanding539,516,660

10 Day Avg. Volume1,433,814

30 Day Avg. Volume2,132,507

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.09

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit1.25

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.20

Price Target Upside83.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 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.

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

Tuya Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.29

Price Trends

50DMA

2.86

Negative

100DMA

2.60

Negative

200DMA

2.06

Positive

Market Momentum

MACD

-0.10

Negative

RSI

49.93

Neutral

STOCH

61.54

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 2.29 is above the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.86, and above the 200-day MA of 2.06, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	76 Outperform	$7.35B	28.05	30.28%	―	27.39%	115.40%
KVYO	76 Outperform	$8.76B	―	-4.73%	―	33.95%	87.03%
KLTR	69 Neutral	$342.83M	―	-114.48%	―	2.40%	54.99%
TUYA	66 Neutral	$1.48B	268.97	0.51%	2.62%	29.84%	―
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%
BLZE	57 Neutral	$249.11M	―	-74.75%	―	21.81%	28.80%

* Technology Sector Average

Performance Comparison

TUYA

Tuya

2.41

0.68

39.31%

FOUR

Shift4 Payments

85.43

24.40

39.98%

KLTR

Kaltura

2.18

0.94

75.81%

FAAS

DigiAsia

0.20

-7.75

-97.48%

BLZE

Backblaze

5.25

-2.25

-30.00%

KVYO

Klaviyo, Inc. Class A

33.24

9.16

38.04%

Tuya Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2024)

% Change Since: 0.00%|

Next Earnings Date:Sep 01, 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.

Q4-2024 Updates

Positive Updates

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.

Negative Updates

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.