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DQ

Daqo New EnergyNYSE:DQ Stock Report

Market Cap

US$4.0b

7D

-4.5%

1Y

108.6%

Updated

27 Sep, 2021

Data

Company Financials +
DQ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

DQ Overview

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

Summary of all time highs, changes and price drops for Daqo New Energy
Historical stock prices
Current Share PriceUS$54.21
52 Week HighUS$24.86
52 Week LowUS$130.33
Beta0.71
1 Month Change-0.48%
3 Month Change-18.82%
1 Year Change108.63%
3 Year Change926.32%
5 Year Change1,152.54%
Change since IPO428.88%

Recent News & Updates

Shareholder Returns

DQUS SemiconductorUS Market
7D-4.5%3.4%2.0%
1Y108.6%49.5%32.8%

Return vs Industry: DQ exceeded the US Semiconductor industry which returned 49.5% over the past year.

Return vs Market: DQ exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is DQ's price volatile compared to industry and market?
DQ volatility
DQ Beta0.71
Industry Beta1.23
Market Beta1

Stable Share Price: DQ is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: DQ's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20061,896Longgen Zhanghttps://www.dqsolar.com

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

How do Daqo New Energy's earnings and revenue compare to its market cap?
DQ fundamental statistics
Market CapUS$3.99b
Earnings (TTM)US$408.90m
Revenue (TTM)US$1.07b

9.7x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DQ income statement (TTM)
RevenueUS$1.07b
Cost of RevenueUS$493.80m
Gross ProfitUS$576.92m
ExpensesUS$168.02m
EarningsUS$408.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.56
Gross Margin53.88%
Net Profit Margin38.19%
Debt/Equity Ratio13.7%

How did DQ perform over the long term?

See historical performance and comparison

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 ($54.21) is trading below our estimate of fair value ($202.61)

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 (9.7x) compared to the US Semiconductor industry average (30.8x).

PE vs Market: DQ is good value based on its PE Ratio (9.7x) compared to the US market (18.1x).


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 is good value based on its PB Ratio (3.6x) compared to the US Semiconductor industry average (4.6x).


Future Growth

How is Daqo New Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-7.1%

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 (-7.1% per year).

Earnings vs Market: DQ's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: DQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DQ's revenue (2.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: DQ's revenue (2.1% 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 (17.6%).


Past Performance

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

31.3%

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 70.6%.


Return on Equity

High ROE: DQ's Return on Equity (37.5%) is considered high.


Financial Health

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).


Balance Sheet


Dividend

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

1.99%

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.


Next Steps

Management

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

10.4yrs

Average board tenure


CEO

Longgen Zhang (56 yo)

3.67yrs

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

Experienced Board: DQ's board of directors are seasoned and experienced ( 10.4 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 5.8%.


Top Shareholders

Company Information

Daqo New Energy Corp.'s 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$3.985b
  • Shares outstanding: 73.51m
  • Website: https://www.dqsolar.com

Number of Employees


Location

  • Daqo New Energy Corp.
  • Huadu Mansion
  • Unit 29, Room C
  • Shanghai
  • 200122
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:04
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.