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.


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

-7.8%

DQ

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

64.5%

DQ

18.2%

US Semiconductor

5.6%

US Market

Return vs Industry: DQ exceeded the US Semiconductor industry which returned 18.2% over the past year.

Return vs Market: DQ exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

DQIndustryMarket
7 Day-7.8%3.8%2.3%
30 Day-20.8%-0.03%-1.0%
90 Day-8.3%4.4%-0.7%
1 Year64.5%64.5%20.5%18.2%7.9%5.6%
3 Year70.1%70.1%82.3%71.6%45.6%36.3%
5 Year5.1%5.1%140.3%115.5%65.8%47.6%

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

Undervalued: DQ ($40.49) is trading below our estimate of fair value ($90.32)

Significantly Undervalued: 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 (22.1x) compared to the Semiconductor industry average (27.7x).

PE vs Market: DQ is poor value based on its PE Ratio (22.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DQ is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: DQ is good value based on its PB Ratio (1x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

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

68.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DQ's forecast earnings growth (68.1% per year) is above the savings rate (2.7%).

Earnings vs Market: DQ's earnings (68.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: DQ's revenue (41.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DQ's revenue (41.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DQ's Return on Equity is forecast to be low in 3 years time (18.2%).


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

Earnings Trend: DQ has become profitable over the past 5 years, growing earnings by 36.9% per year.

Accelerating Growth: DQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DQ had negative earnings growth (-76.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: DQ's Return on Equity (4.5%) is considered low.


Return on Assets

ROA vs Industry: DQ's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: DQ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Daqo New Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DQ's short term assets ($137.2M) do not cover its short term liabilities ($245.9M)

Long Term Liabilities: DQ's short term assets (137.2M) do not cover its long term liabilities (194.1M)


Debt to Equity History and Analysis

Debt Level: DQ's debt to equity ratio (45.1%) is considered high

Reducing Debt: DQ's debt to equity ratio has reduced from 128.8% to 45.1% over the past 5 years.

Debt Coverage: DQ's debt is well covered by operating cash flow (39.6%).

Interest Coverage: DQ's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: DQ has a high level of physical assets or inventory.

Debt Coverage by Assets: DQ's 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 vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

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

1.8yrs

Average management tenure


CEO

Longgen Zhang (54yo)

1.8yrs

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

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: DQ's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

59yo

Average Age

Experienced Board: DQ's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Longgen Zhang (54yo)

    CEO & Director

    • Tenure: 1.8yrs
  • Ming Yang (46yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
  • Guangfu Xu (76yo)

    Founder & Chairman

    • Tenure: 11.9yrs
  • Shihua Su (44yo)

    Chief Marketing Officer

    • Tenure: 4.3yrs
  • Qiangmin Zhou (51yo)

    Chief Operations Officer

    • Tenure: 0.3yrs
  • Kevin He

    Head of Investor Relations

    • Tenure: 0yrs
  • Xiyu Wang

    Chief Technology Officer

    • Tenure: 0.3yrs

Board Members

  • Shuming Zhao (67yo)

    Independent Director

    • Tenure: 8yrs
  • Longgen Zhang (54yo)

    CEO & Director

    • Tenure: 1.8yrs
  • Fumin Zhuo (68yo)

    Independent Director

    • Tenure: 9.9yrs
  • Rongling Chen (77yo)

    Independent Director

    • Tenure: 9yrs
  • Guangfu Xu (76yo)

    Founder & Chairman

    • Tenure: 11.9yrs
  • Xiang Xu (48yo)

    Director

    • Tenure: 11.9yrs
  • Dafeng Shi (47yo)

    Director

    • Tenure: 6.7yrs
  • Arthur Wong (59yo)

    Independent Director

    • Tenure: 6.8yrs
  • Minsong Liang (50yo)

    Independent Director

    • Tenure: 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$537.755m
  • 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 Analysis2019/10/17 00:13
End of Day Share Price2019/10/16 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.