Quality Investor

Tuya Inc.

Rank #416Capital Return

TUYA · NYSE · Technology

Tuya Inc. (TUYA) — Rank #416 by gross profitability (GP/assets 0.14) · ROE 5.7% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001829118 · all metrics point-in-time as of the filing date.

About

Tuya Inc. provides artificial intelligence (AI) cloud platform services in the People's Republic of China.

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Its AI cloud developer platform delivers a suite of offerings, including platform-as-a-service (PaaS), software-as-a-service (SaaS), and smart solutions to developers of smart device, commercial applications, and industries. The company's PaaS offering enables original equipment manufacturers and brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services. Its SaaS offering enables businesses to deploy, connect, and manage smart devices in various vertical scenarios for spatial intelligence and cloud-based software value-added services to build their own autonomous and controllable smart business platforms. Its solutions include cube private cloud, smart hospitality, smart residential, commercial lighting, and smart house and real estate. The company also offers a range of other cloud-based value-added services to enhance their ability to develop and manage IoT experiences for businesses, developers, and end users. In addition, it provides smart solutions for smart devices integrated with AI and intelligent software capabilities. The company serves brands, original equipment manufacturers, industry operators, and system integrators across a range of industry verticals, such as smart home and business, renewable energy, education, agriculture, outdoors and sport, and entertainment. Tuya Inc.

was founded in 2014 and is based in Hangzhou, the People's Republic of China.

Industry
Software - Infrastructure
Sector
Technology
State
E9
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
tuya.com

Price History

TUYA-84.0% · -30.6% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$1.09B

P/E (annual)

19.8

P/S (annual)

3.4

P/B

1.1

P/OCF (annual)

13.5

Shareholder Yield

2.5%

Employees

1,453

Industry

Software - Infrastructure

Exchange

NYSE

Signal Flags

2 green1 yellow
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.14
Return on equity
5.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.11
Current ratio
9.63×
Net cash
$1.03B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
6.9%

Growth

1/2 pass
Revenue growth
7.8%
Piotroski F-Score
7 / 9
Share dilution
3.9%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

3.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 3.9% — per-share value needs a total required return of 7.5% once share-count change is priced in.

vs. own 6-year median revenue growth: 20.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-0.4%

r = 10% (base)

3.6%

r = 12%

7.1%

Net debt / market cap: -94.0%

Base FCF: $73.9M3Y mean FCF: $61.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

4.6xFair
3.0xmed 4.5x5.2x

P / B

Price / book value per share

1.4xExpensive
0.9xmed 1.1x1.4x

P / GP

Price / gross profit per share

9.5xFair
8.6xmed 9.4x19.7x

P / FCF

Price / free cash flow per share

19.9xFair
17.5xmed 19.9x26.2x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.14

Primary signal (Novy-Marx).

3rd pctl of 38 SIC 7372 peers

Return on equity

5.7%

Gross margin

48.2%

14th pctl of 38 SIC 7372 peers

Revenue growth (YoY)

7.8%

RPO growth (YoY)

27.6%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

15.6%

Revenue CAGR (5Y)

12.3%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.11

97th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

9.63×

100th pctl of 38 SIC 7372 peers

Quick ratio

9.09×

Net cash

$1.03B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$73.90M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.28

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

6.9%

Stock-based comp intensity.

Dividend safety

Composite score

1.2 / 5

Weak
Payout ratio
120.7%0/5 Weak
FCF coverage
1.06×2/5 Fair
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 0.11 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Decline
Startup
Op. Leverage
Capital Return