NYSE:DQ

Stock Analysis Report

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.

Snowflake

Fundamentals

Undervalued with high growth potential.

Risks

  • Daqo New Energy has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

4.8%

NYSE:DQ

3.7%

US Semiconductor

0.9%

US Market


1 Year Return

29.0%

NYSE:DQ

7.2%

US Semiconductor

0.3%

US Market

DQ outperformed the Semiconductor industry which returned 5.3% over the past year.

DQ outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

DQIndustryMarket
7 Day4.8%3.7%0.9%
30 Day0.3%-1.1%-1.9%
90 Day14.9%9.7%1.6%
1 Year29.0%29.0%9.2%7.2%2.6%0.3%
3 Year78.3%78.3%74.3%64.1%41.0%31.8%
5 Year31.6%31.6%112.2%90.8%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Daqo New Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Daqo New Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Daqo New Energy is good value based on earnings compared to the US Semiconductor industry average.

Daqo New Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Daqo New Energy is good value based on expected growth next year.


Price Based on Value of Assets

Daqo New Energy is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Daqo New Energy expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

68.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Daqo New Energy's revenue is expected to grow significantly at over 20% yearly.

Daqo New Energy's earnings are expected to grow significantly at over 20% yearly.

Daqo New Energy's revenue growth is expected to exceed the United States of America market average.

Daqo New Energy's earnings growth is expected to exceed the United States of America market average.

Daqo New Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Daqo New Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

36.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Daqo New Energy has delivered over 20% year on year earnings growth in the past 5 years.

Daqo New Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Daqo New Energy's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Daqo New Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Daqo New Energy used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Daqo New Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Daqo New Energy's financial position?


Financial Position Analysis

Daqo New Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Daqo New Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Daqo New Energy's level of debt (45.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (128.8% vs 45.1% today).

Debt is well covered by operating cash flow (39.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Daqo New Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Daqo New Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Daqo New Energy has not reported any payouts.

Unable to verify if Daqo New Energy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Daqo New Energy has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Daqo New Energy's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Daqo New Energy's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Longgen Zhang (54yo)

1.6yrs

Tenure

0

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 ...


Management Age and Tenure

1.6yrs

Average Tenure

51yo

Average Age

The average tenure for the Daqo New Energy management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.3yrs

Average Tenure

59yo

Average Age

The tenure for the Daqo New Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Longgen Zhang (54yo)

    CEO & Director

    • Tenure: 1.6yrs
  • Ming Yang (46yo)

    Chief Financial Officer

    • Tenure: 4.1yrs
  • Guangfu Xu (76yo)

    Founder & Chairman

    • Tenure: 11.8yrs
  • Shihua Su (44yo)

    Chief Marketing Officer

    • Tenure: 4.1yrs
  • Qiangmin Zhou (51yo)

    Chief Operations Officer

    • Tenure: 0.2yrs
  • Kevin He

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Xiyu Wang

    Chief Technology Officer

    • Tenure: 0.2yrs

Board Members

  • Shuming Zhao (67yo)

    Independent Director

    • Tenure: 7.8yrs
  • Longgen Zhang (54yo)

    CEO & Director

    • Tenure: 1.6yrs
  • Fumin Zhuo (68yo)

    Independent Director

    • Tenure: 9.8yrs
  • Rongling Chen (77yo)

    Independent Director

    • Tenure: 8.8yrs
  • Guangfu Xu (76yo)

    Founder & Chairman

    • Tenure: 11.8yrs
  • Xiang Xu (48yo)

    Director

    • Tenure: 11.8yrs
  • Dafeng Shi (47yo)

    Director

    • Tenure: 6.5yrs
  • Arthur Wong (59yo)

    Independent Director

    • Tenure: 6.7yrs
  • Minsong Liang (50yo)

    Independent Director

    • Tenure: 7.8yrs

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$588.357m
  • Shares outstanding: 13.28m
  • 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

Biography

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 furth ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:20
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.