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Tuya (TUYA)
NYSE:TUYA
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Tuya
(NYSE:TUYA)
76Outperform
Tuya (TUYA) vs. S&P 500 (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)5.41M
Price to Earnings (P/E)406.1
Beta (1Y)0.62
Revenue Growth33.25%
EPS Growth78.66%
CountryUS
Employees1,465
SectorTechnology
Sector Strength54
IndustrySoftware
Share Statistics
EPS (TTM)<0.01
Shares Outstanding504,387,300
10 Day Avg. Volume3,148,928
30 Day Avg. Volume5,406,316
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.72
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.20Price Target Upside26.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Tuya Business Overview & Revenue Model
Company DescriptionTuya Inc. is a global IoT development platform service provider that focuses on enabling smart home and business applications. The company offers a comprehensive suite of cloud-based and embedded software solutions that allow manufacturers, brands, OEMs, and retail chains to develop smart devices and manage their products. Tuya's platform supports various sectors, including smart home, smart business, healthcare, and industrial automation, offering connectivity solutions and services to help clients build IoT ecosystems efficiently.
How the Company Makes MoneyTuya generates revenue through a multi-faceted business model primarily centered around its IoT platform services. The company earns money by charging fees for access to its platform, which includes device connectivity and management tools, application development services, and data analytics. Tuya also provides customized solutions and consulting services for clients seeking tailored IoT implementations, which serve as another revenue stream. Additionally, Tuya partners with various hardware manufacturers and brands, offering cloud services and receiving revenue through these strategic collaborations. The company's earnings are bolstered by its ability to scale with the growth of IoT across different industries and regions.
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
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.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 280.97M | 229.99M | 208.17M | 302.08M | 179.87M | 105.79M | Gross Profit |
| 132.66M | 106.66M | 89.42M | 127.87M | 61.94M | 27.79M | EBIT |
| -72.94M | -105.82M | -168.19M | -183.56M | -69.85M | -73.44M | EBITDA |
| -66.22M | -99.28M | -159.98M | -173.21M | -64.16M | -70.04M | Net Income Common Stockholders |
| -15.60M | -60.31M | -146.18M | -175.42M | -66.91M | -70.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 230.07M | 789.71M | 954.29M | 1.07B | 179.77M | 229.92M | Total Assets |
| 279.40M | 1.07B | 1.06B | 1.25B | 267.32M | 279.40M | Total Debt |
| 5.21M | 7.79M | 9.14M | 21.75M | 12.01M | 8.97M | Net Debt |
| -208.05M | -490.90M | -124.02M | -942.19M | -146.78M | -204.28M | Total Liabilities |
| 55.83M | 95.83M | 93.97M | 134.49M | 98.32M | 389.50M | Stockholders Equity |
| 223.57M | 970.57M | 962.17M | 1.11B | 169.00M | -110.09M |
| Cash Flow | Free Cash Flow | ||||
| 80.43M | 34.94M | -71.36M | -132.30M | -52.41M | -59.05M | Operating Cash Flow |
| 81.93M | 36.44M | -70.65M | -126.10M | -49.21M | -56.56M | Investing Cash Flow |
| 361.63M | 332.45M | -714.23M | -112.96M | -7.85M | 8.49M | Financing Cash Flow |
| -16.00K | -2.22M | -38.58M | 1.04B | -172.00K | 174.23M |
Tuya Technical Analysis
Neutral
3.33
Price Trends
3.09
Positive
2.37
Positive
1.95
Positive
Market Momentum
0.10
Positive
46.70
Neutral
8.45
Positive
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 3.33 is below the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.09, and above the 200-day MA of 1.95, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 8.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TUYA.
Tuya Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.16B | 15.79 | 14.41% | 2.68% | -13.19% | 10.03% | |
76 Outperform | $2.04B | 406.10 | 0.51% | ― | 33.25% | 78.66% | |
74 Outperform | $2.85B | 25.25 | 17.54% | ― | 6.59% | 53.89% | |
68 Neutral | $1.11B | ― | -29.88% | ― | 4.01% | -27.92% | |
66 Neutral | $2.73B | 26.07 | 3.83% | ― | 8.31% | -49.90% | |
58 Neutral | $21.97B | 10.63 | -18.43% | 2.40% | 4.67% | -24.47% | |
43 Neutral | $486.93M | ― | -166.29% | ― | 0.37% | -20.49% |
* Technology Sector Average
Performance Comparison
TUYA
Tuya
3.33
1.67
100.60%
ALRM
Alarm
57.76
-14.71
-20.30%
SENS
Senseonics Holdings
0.72
0.19
35.85%
ADT
Adt
8.17
1.65
25.31%
ARLO
Arlo Technologies
10.71
-1.94
-15.34%
REZI
Resideo Technologies
18.41
-4.01
-17.89%
Tuya Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -4.31% | Next Earnings Date: May 8, 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.Highlights
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.
Lowlights
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.