Tuya (TUYA) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: 4.39%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 49.0
• Beta (1Y): 0.95
• Revenue Growth: 22.46%
• 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: 1,708,029
• 30 Day Avg. Volume: 1,543,225
• 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: 0.38
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: -68.39
• 1Y Price Target: $3.60
• Price Target Upside: 51.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $3.00 ▲(26.58% Upside)

Tuya's overall stock score reflects strong financial performance and positive earnings call insights, tempered by valuation concerns and mixed technical indicators. The company's robust revenue growth and strategic focus on AI innovations are significant strengths, while global trade uncertainties and profitability challenges remain key risks.

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 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 Financial Statement Overview

Summary

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

Income Statement

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

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

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	318.77M	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	-8.48M	-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: Negative
• Last Price: 2.37
• 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 2.37 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.50, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 20.24 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	77 Outperform	$1.29B	26.10	24.39%	1.35%	11.04%	18.70%
RAMP	72 Outperform	$1.78B	127.89	1.34%	―	12.16%	139.72%
TUYA	69 Neutral	$1.51B	48.97	2.89%	4.39%	22.46%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BASE	60 Neutral	$1.35B	―	-60.03%	―	10.98%	11.62%
RZLV	56 Neutral	$1.65B	―	―	―	―	―

Tuya Corporate Events

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.

Tuya Inc. Reports July 2025 Share Capital Movements

Tuya Inc. submitted a monthly return form on August 6, 2025, to the Hong Kong Stock Exchange detailing movements in its authorized share capital and issued shares for July 2025. The report highlights that there was an increase of 25,000 in issued shares of Class A ordinary shares, while the total authorized share capital remained unchanged. This update is part of Tuya’s ongoing compliance with regulatory requirements, reflecting its operational adjustments and strategic management of equity to support its business objectives.