Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufactures in the People’s Republic of China.
Daqo New Energy Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$71.37|
|52 Week High||US$33.33|
|52 Week Low||US$130.33|
|1 Month Change||32.61%|
|3 Month Change||26.36%|
|1 Year Change||80.15%|
|3 Year Change||1,595.25%|
|5 Year Change||1,433.52%|
|Change since IPO||596.29%|
Recent News & Updates
Should You Be Adding Daqo New Energy (NYSE:DQ) To Your Watchlist Today?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Daqo New Energy Bubble May Have Legs
Daqo New Energy is a terrific company that has executed well for the past several years and continues to be a star in the solar space. The valuation, however, is being driven by unsustainably high ASPs due to supply demand imbalance. There is an opportunity for traders at the current elevated valuation, but long-term investors may choose to be on the sidelines.
Daqo New Energy: Solar Energy At Very Competitive Prices
Daqo New Energy manufactures high-purity polysilicon for the solar industry. The company is one of the lowest-cost producers of high-purity polysilicon in the world. The company’s production volume does not stop growing. Daqo New Energy Corp. has gone from producing 1,517 MT per quarter to more than 40,000 MT per quarter. In my opinion, as economies of scale continue to play a role in the company’s income statement, Daqo New Energy could become a profitable and large business player. With a WACC of 5%, the sum of the free cash flow stands at $2.5 billion. I assumed a share count of 73 million, net debt of -$152 million, and an exit multiple of 15x FCF. The result is an implied share price of $90. The current share price is $40-$50, so Daqo appears deeply undervalued. In my opinion, once investors learn about the business model and the expected free cash flow, the company’s share price will creep up.
|DQ||US Semiconductor||US Market|
Return vs Industry: DQ exceeded the US Semiconductor industry which returned 42.2% over the past year.
Return vs Market: DQ exceeded the US Market which returned 30.3% over the past year.
Stable Share Price: DQ is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: DQ's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufactures in the People’s Republic of China. The photovoltaic product manufactures further process its polysilicon into ingots, wafers, cells, and modules for solar power solutions. It offers ready-to-use polysilicon, and packaged to meet crucible stacking, pulling, and solidification products.
Daqo New Energy Fundamentals Summary
|DQ fundamental statistics|
Is DQ overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DQ income statement (TTM)|
|Cost of Revenue||US$493.80m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 28, 2021
|Earnings per share (EPS)||5.56|
|Net Profit Margin||38.19%|
How did DQ perform over the long term?See historical performance and comparison
Is Daqo New Energy undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DQ ($71.37) is trading below our estimate of fair value ($210.84)
Significantly Below Fair Value: DQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DQ is good value based on its PE Ratio (12.8x) compared to the US Semiconductor industry average (31.9x).
PE vs Market: DQ is good value based on its PE Ratio (12.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: DQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: DQ's PB Ratio (4.8x) is in line with the US Semiconductor industry average.
How is Daqo New Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DQ's earnings are forecast to decline over the next 3 years (-8.2% per year).
Earnings vs Market: DQ's earnings are forecast to decline over the next 3 years (-8.2% per year).
High Growth Earnings: DQ's earnings are forecast to decline over the next 3 years.
Revenue vs Market: DQ's revenue (1.7% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: DQ's revenue (1.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DQ's Return on Equity is forecast to be low in 3 years time (17.9%).
How has Daqo New Energy performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DQ has high quality earnings.
Growing Profit Margin: DQ's current net profit margins (38.2%) are higher than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: DQ's earnings have grown significantly by 31.3% per year over the past 5 years.
Accelerating Growth: DQ's earnings growth over the past year (572%) exceeds its 5-year average (31.3% per year).
Earnings vs Industry: DQ earnings growth over the past year (572%) exceeded the Semiconductor industry 70.4%.
Return on Equity
High ROE: DQ's Return on Equity (37.5%) is considered high.
How is Daqo New Energy's financial position?
Financial Position Analysis
Short Term Liabilities: DQ's short term assets ($429.7M) exceed its short term liabilities ($395.3M).
Long Term Liabilities: DQ's short term assets ($429.7M) exceed its long term liabilities ($178.2M).
Debt to Equity History and Analysis
Debt Level: DQ's debt to equity ratio (13.7%) is considered satisfactory.
Reducing Debt: DQ's debt to equity ratio has reduced from 85.6% to 13.7% over the past 5 years.
Debt Coverage: DQ's debt is well covered by operating cash flow (386.5%).
Interest Coverage: DQ's interest payments on its debt are well covered by EBIT (19.5x coverage).
What is Daqo New Energy current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DQ's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Longgen Zhang (56 yo)
Mr. Longgen Zhang has been chief executive officer and executive board member at Daqo New Energy Corp., since January 16, 2018. Mr. Zhang served as Financial Advisor of JinkoSolar Holding Co., Ltd since Se...
Experienced Board: DQ's board of directors are seasoned and experienced ( 10.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.
Daqo New Energy Corp.'s employee growth, exchange listings and data sources
- Name: Daqo New Energy Corp.
- Ticker: DQ
- Exchange: NYSE
- Founded: 2006
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$5.247b
- Shares outstanding: 73.51m
- Website: https://www.dqsolar.com
Number of Employees
- Daqo New Energy Corp.
- Huadu Mansion
- Unit 29, Room C
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/24 22:10|
|End of Day Share Price||2021/10/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.