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DQ

Daqo New Energy NYSE:DQ Stock Report

Last Price

US$44.07

Market Cap

US$3.0b

7D

11.0%

1Y

-38.1%

Updated

17 May, 2022

Data

Company Financials +
DQ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

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.

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$44.07
52 Week HighUS$90.48
52 Week LowUS$32.20
Beta0.73
1 Month Change-0.25%
3 Month Change7.91%
1 Year Change-38.13%
3 Year Change514.13%
5 Year Change856.38%
Change since IPO329.95%

Recent News & Updates

Apr 18
Here's Why We Think Daqo New Energy (NYSE:DQ) Is Well Worth Watching

Here's Why We Think Daqo New Energy (NYSE:DQ) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

DQUS SemiconductorUS Market
7D11.0%5.2%2.7%
1Y-38.1%9.5%-8.1%

Return vs Industry: DQ underperformed the US Semiconductor industry which returned 3.5% over the past year.

Return vs Market: DQ underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is DQ's price volatile compared to industry and market?
DQ volatility
DQ Average Weekly Movement13.6%
Semiconductor Industry Average Movement8.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
20062,399Longgen 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. 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 CapUS$3.01b
Earnings (TTM)US$1.20b
Revenue (TTM)US$2.70b

2.7x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DQ income statement (TTM)
RevenueUS$2.70b
Cost of RevenueUS$911.20m
Gross ProfitUS$1.79b
Other ExpensesUS$590.27m
EarningsUS$1.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)16.13
Gross Margin66.29%
Net Profit Margin44.45%
Debt/Equity Ratio0.0%

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


25.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DQ ($44.07) is trading below our estimate of fair value ($58.84)

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 (2.7x) compared to the US Semiconductor industry average (19x).

PE vs Market: DQ is good value based on its PE Ratio (2.7x) compared to the US market (15.5x).


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 (1.2x) compared to the US Semiconductor industry average (3.4x).


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 70.5%.


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


3.55%

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.


Next Steps

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.


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
  • Implied Market Cap: US$3.006b
  • Shares outstanding: 74.51m
  • Website: https://www.dqsolar.com

Number of Employees


Location

  • Daqo New Energy Corp.
  • Huadu Mansion
  • Unit 29
  • 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 Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.