Tuya (TUYA) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: 4.71%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.09
• 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: 1,193,843
• 30 Day Avg. Volume: 1,033,793
• PEG Ratio: -1.90
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 3.44
• P/FCF Ratio: 15.27
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 3.70
• Enterprise Value/Ebitda: -27.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.1
• Revenue Forecast (FY): $322.77M

• Rating: 65 Neutral
• Price Target: $2.50 ▲(13.12% Upside)

Tuya's overall stock score reflects its strong financial position and promising cash flow, balanced by challenges in profitability and mixed technical indicators. The earnings call provided positive insights into profitability and AI integration, but highlighted minimal revenue growth and uncertainties in demand.

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. is a global IoT development platform that provides cloud services, AI solutions, and a wide array of smart device management solutions. Founded in 2014, Tuya primarily operates in the smart home and IoT sectors, offering a comprehensive suite of products that enable manufacturers and developers to create smart devices and applications. Their core offerings include cloud services, an integrated development environment, and a marketplace for smart devices, facilitating the rapid deployment of IoT solutions across various industries.

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

Tuya shows a positive growth trajectory with improving revenue and cash flow metrics. The balance sheet is strong with low leverage, reducing financial risk. However, challenges remain in achieving consistent profitability, as indicated by negative EBIT and EBITDA margins.

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	98.32M
Stockholders Equity	1.01B	1.01B	970.57M	962.17M	1.11B	169.00M
Cash Flow
Free Cash Flow	81.58M	67.25M	34.94M	-71.36M	-132.30M	-52.41M
Operating Cash Flow	81.58M	80.35M	36.44M	-70.65M	-126.10M	-49.21M
Investing Cash Flow	97.31M	107.43M	332.45M	-714.23M	-112.96M	-7.85M
Financing Cash Flow	-70.26M	-33.20M	-2.22M	-38.58M	1.04B	-172.00K

Tuya Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TUYA, the sentiment is Neutral. The current price of 2.21 is above the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.34, and below the 200-day MA of 2.56, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TUYA.

Tuya Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.22B	24.89	23.88%	1.41%	10.27%	3.52%
RAMP	75 Outperform	$1.84B	47.70	4.10%	―	10.13%	1280.04%
TUYA	65 Neutral	$1.35B	27.39	4.87%	4.71%	13.36%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BASE	60 Neutral	―	―	―	―	10.98%	11.62%
RZLV	41 Neutral	$960.08M	―	―	―	―	―

Tuya Corporate Events

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.

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.

Tuya Inc. Reports Share Capital Movements for September 2025

On October 6, 2025, Tuya Inc. submitted a monthly return form to The Stock Exchange of Hong Kong Limited, detailing movements in its authorized share capital and issued shares for September 2025. The report highlights an increase of 1,642,500 in issued Class A ordinary shares, attributed to the exercise of options under the company’s equity incentive plans. This development reflects Tuya’s ongoing efforts to manage its share capital effectively and could impact its market positioning by potentially increasing shareholder value.

Tuya Inc. Releases 2025 Interim Financial Report

On September 25, 2025, Tuya Inc. released its interim report for the first six months of the fiscal year ending December 31, 2025. As a company listed on The Stock Exchange of Hong Kong Limited, Tuya is required to furnish this report, which provides insights into its financial performance and operational highlights for the period. This report is crucial for stakeholders as it reflects the company’s current market positioning and strategic direction.

Tuya Inc. Announces Share Capital Changes as of September 8, 2025

On September 8, 2025, Tuya Inc. submitted a disclosure to the Hong Kong Stock Exchange regarding changes in its issued share capital. This involved the issuance of new shares as part of the company’s 2015 Equity Incentive Plan, with a total of 1,642,500 new shares issued, impacting the company’s share structure and potentially influencing its market positioning.

Tuya Inc. Reports Stable Share Capital Movements for August 2025

On September 4, 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 August 2025. The report indicated no changes in the number of issued shares for both Class A and Class B ordinary shares during the month. Additionally, the exercise of 86,500 options was settled using existing Class A shares, with no new shares issued or treasury shares decreased. This stability in share capital movements suggests a steady operational phase for Tuya, potentially reassuring stakeholders about the company’s current financial positioning.