Tuya Inc. American Depositary Shares each representing one Class A Ordinary Share (TUYA)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close, Tuya trades for $1.72, giving a $1.4B market cap. It sells AI cloud platform services, including PaaS, SaaS, and smart solutions for smart-device developers. That is an attractive asset-light niche, but the figures show a business with modest returns: FairStock's calculations show ROE of 6.74% and ROCE of 1.58%. Those are not the returns of a wide-moat compounder. The balance sheet is a genuine strength: D/E is 0.01, Altman Z-Score is 6.65, and trailing free cash flow is $58.9M, a 4.2% FCF yield. In the second quarter of 2026, revenue was $92.9M and net income was $18.6M, a 20.05% net margin. The supplied growth figures are 8.29% for revenue and 43.20% for profit, so profit is expanding faster than sales, but revenue growth is only modest. Valuation is mixed. FairStock calculates P/E 15.64, P/B 1.06, PEG 0.36, and EV/EBITDA 19.02. Its Graham Number is $2.04, giving a 15.69% margin of safety from the 2026-10-13 close. A 6.98% dividend yield is tempting, but it exceeds the 4.2% FCF yield, so sustainability is questionable. Piotroski is 6/9 and FairStock Score is 54/100. The computed Lynch category is none because only 0 years of filed results are available against the 3 required. Overall, this looks like a financially safe, reasonably priced small-cap software business, but not a bargain with a clear moat.

In plain English: Tuya provides cloud software and services that help companies build and manage smart devices. The business is profitable and has very little debt, but it earns only a modest profit on the money invested and sales are growing slowly. The dividend looks high compared with the cash the business produces. At $1.72, the shares look slightly below a basic value estimate, but not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer