NYSE:DQ

Stock Analysis Report

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Executive Summary

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufactures in the People’s Republic of China. More Details


Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

How has Daqo New Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.0%

DQ

-0.4%

US Semiconductor

-1.9%

US Market


1 Year Return

168.9%

DQ

37.6%

US Semiconductor

13.1%

US Market

Return vs Industry: DQ exceeded the US Semiconductor industry which returned 37.6% over the past year.

Return vs Market: DQ exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

DQIndustryMarket
7 Day9.0%-0.4%-1.9%
30 Day-6.6%-1.3%-2.9%
90 Day78.5%10.8%8.2%
1 Year168.9%168.9%40.2%37.6%15.7%13.1%
3 Year322.2%322.2%83.8%74.2%38.4%29.1%
5 Year687.6%687.6%241.6%208.0%89.3%68.0%

Price Volatility Vs. Market

How volatile is Daqo New Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Daqo New Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DQ ($124.52) is trading below our estimate of fair value ($273.26)

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 (28.4x) compared to the US Semiconductor industry average (34.1x).

PE vs Market: DQ is poor value based on its PE Ratio (28.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: DQ is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: DQ is good value based on its PB Ratio (2.9x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Daqo New Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DQ's forecast earnings growth (31.4% per year) is above the savings rate (2.2%).

Earnings vs Market: DQ's earnings (31.4% per year) are forecast to grow faster than the US market (23% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DQ's revenue (12.6% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: DQ's revenue (12.6% 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 high in 3 years time (24.1%)


Next Steps

Past Performance

How has Daqo New Energy performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DQ has a high level of non-cash earnings.

Growing Profit Margin: DQ's current net profit margins (12%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: DQ's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: DQ's earnings growth over the past year (149.7%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: DQ earnings growth over the past year (149.7%) exceeded the Semiconductor industry 7.5%.


Return on Equity

High ROE: DQ's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Daqo New Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DQ's short term assets ($171.7M) do not cover its short term liabilities ($368.4M).

Long Term Liabilities: DQ's short term assets ($171.7M) exceed its long term liabilities ($159.8M).


Debt to Equity History and Analysis

Debt Level: DQ's debt to equity ratio (41.9%) is considered high.

Reducing Debt: DQ's debt to equity ratio has reduced from 111.9% to 41.9% over the past 5 years.

Debt Coverage: DQ's debt is well covered by operating cash flow (60.5%).

Interest Coverage: DQ's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Daqo New Energy current dividend yield, its reliability and sustainability?


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average board tenure


CEO

Longgen Zhang (55 yo)

2.67yrs

Tenure

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 ...


Board Members

NamePositionTenureCompensationOwnership
Guangfu Xu
Founder & Chairman12.83yrsno data11.34%
$ 196.2m
Longgen Zhang
CEO & Director2.67yrsno data2.71%
$ 46.9m
Shuming Zhao
Independent Director8.92yrsno datano data
Fumin Zhuo
Independent Director10.83yrsno datano data
Rongling Chen
Independent Director9.92yrsno datano data
Xiang Xu
Director12.83yrsno data11.65%
$ 201.5m
Dafeng Shi
Director7.58yrsno data1.74%
$ 30.1m
Lap Tat Wong
Independent Director7.75yrsno datano data
Minsong Liang
Independent Director8.92yrsno datano data

9.4yrs

Average Tenure

60yo

Average Age

Experienced Board: DQ's board of directors are considered experienced (9.4 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Company Information

Daqo New Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Daqo New Energy Corp.
  • Ticker: DQ
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$1.730b
  • Shares outstanding: 13.90m
  • Website: https://www.dqsolar.com

Number of Employees


Location

  • Daqo New Energy Corp.
  • 666 Longdu Avenue
  • Wanzhou
  • Chongqing Province
  • 404000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DQNYSE (New York Stock Exchange)YesADR EACH REPR 25 ORD SHS (POST R/S)USUSDOct 2010
5DQ2MUN (Boerse Muenchen)YesADR EACH REPR 25 ORD SHS (POST R/S)DEEUROct 2010
0I74LSE (London Stock Exchange)YesADR EACH REPR 25 ORD SHS (POST R/S)GBUSDOct 2010

Biography

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufactures in the People’s Republic of China. It offers ready-to-use polysilicon, and pac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 05:50
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.