Daqo New Energy (NYSE:DQ) - Share price, News & Analysis

DQ fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

DQ Stock Overview

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

Rewards

Trading at 21.2% below our estimate of its fair value

Earnings grew by 570.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 36.5% per year for the next 3 years

High level of non-cash earnings

Volatile share price over the past 3 months

Daqo New Energy Competitors

GCL Technology Holdings

SEHK:3800

HK$71.5b

Wacker Chemie

XTRA:WCH

€8.0b

Xinte Energy

SEHK:1799

HK$26.3b

OCI

KOSE:A010060

₩2.6t

Price History & Performance

Summary of all time highs, changes and price drops for Daqo New Energy
Historical stock prices
Current Share Price	US$46.45
52 Week High	US$90.48
52 Week Low	US$32.20
Beta	0.73
1 Month Change	12.52%
3 Month Change	22.14%
1 Year Change	-36.01%
3 Year Change	535.26%
5 Year Change	939.15%
Change since IPO	353.17%

Shareholder Returns

	DQ	US Semiconductor	US Market
7D	15.1%	-1.2%	-0.5%
1Y	-36.0%	-3.7%	-12.3%

Return vs Industry: DQ underperformed the US Semiconductor industry which returned -1.9% over the past year.

Return vs Market: DQ underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is DQ's price volatile compared to industry and market?
DQ volatility
DQ Average Weekly Movement	13.6%
Semiconductor Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: DQ is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: DQ's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2006	2,399	Longgen Zhang	https://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. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009.

Daqo New Energy Fundamentals Summary

How do Daqo New Energy's earnings and revenue compare to its market cap?
DQ fundamental statistics
Market Cap	US$3.46b
Earnings (TTM)	US$1.20b
Revenue (TTM)	US$2.70b

2.9x

P/E Ratio

1.3x

P/S Ratio

Is DQ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DQ income statement (TTM)
Revenue	US$2.70b
Cost of Revenue	US$911.20m
Gross Profit	US$1.79b
Other Expenses	US$590.27m
Earnings	US$1.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	16.13
Gross Margin	66.29%
Net Profit Margin	44.45%
Debt/Equity Ratio	0.0%

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?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

21.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DQ ($46.45) is trading below our estimate of fair value ($58.91)

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 (2.9x) compared to the US Semiconductor industry average (19.8x).

PE vs Market: DQ is good value based on its PE Ratio (2.9x) compared to the US market (15.1x).

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 (1.3x) compared to the US Semiconductor industry average (3.5x).

Future Growth

How is Daqo New Energy forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-36.5%

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 (-36.5% per year).

Earnings vs Market: DQ's earnings are forecast to decline over the next 3 years (-36.5% per year).

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

Revenue vs Market: DQ's revenue is expected to decline over the next 3 years (-7.6% per year).

High Growth Revenue: DQ's revenue is forecast to decline over the next 3 years (-7.6% 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 (11.5%).

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

65.1%

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 (44.5%) are higher than last year (23.5%).

Past Earnings Growth Analysis

Earnings Trend: DQ's earnings have grown significantly by 65.1% per year over the past 5 years.

Accelerating Growth: DQ's earnings growth over the past year (570.4%) exceeds its 5-year average (65.1% per year).

Earnings vs Industry: DQ earnings growth over the past year (570.4%) exceeded the Semiconductor industry 70.4%.

Return on Equity

High ROE: DQ's Return on Equity (43.3%) is considered outstanding.

Financial Health

How is Daqo New Energy's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DQ's short term assets ($2.8B) exceed its short term liabilities ($924.1M).

Long Term Liabilities: DQ's short term assets ($2.8B) exceed its long term liabilities ($148.7M).

Debt to Equity History and Analysis

Debt Level: DQ is debt free.

Reducing Debt: DQ has no debt compared to 5 years ago when its debt to equity ratio was 79.1%.

Debt Coverage: DQ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DQ has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.37%

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DQ has not reported any payouts.

Discover strong dividend paying companies

Management

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

11.1yrs

Average board tenure

CEO

Longgen Zhang (56 yo)

4.33yrs

Tenure

Mr. Longgen Zhang has been chief executive officer and executive board member at Daqo New Energy Corp., since January 16, 2018. He has served as an Independent Non Executive Director at Qingci Games Inc. s...

Board Members

Experienced Board: DQ's board of directors are seasoned and experienced ( 11.1 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31