Daqo New Energy (DQ) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: N/A
• Average Volume (3M): 637.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -51.39%
• EPS Growth: -176.97%
• Country: US
• Employees: 4,749
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.22
• Shares Outstanding: 67,056,720
• 10 Day Avg. Volume: 835,752
• 30 Day Avg. Volume: 637,714
• PEG Ratio: 0.02
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -1.62
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.76
• Enterprise Value/Gross Profit: -11.00
• Enterprise Value/Ebitda: -19.35
• 1Y Price Target: $28.77
• Price Target Upside: 14.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.62
• Revenue Forecast (FY): $1.11B

• Rating: 53 Neutral
• Price Target: $26.00 ▲(3.26% Upside)

DQ scores in the low-to-mid range primarily due to weak profitability and ongoing cash burn despite a very strong, low-debt balance sheet. Technicals remain pressured (below key moving averages with negative MACD), while the latest earnings call shows improving operating momentum via lower costs, higher volumes, and positive EBITDA, partially offsetting the financial weakness. Valuation remains constrained by losses (negative P/E) and no dividend support.

Positive Factors

Balance Sheet Strength

Near-zero debt and a large cash/assets base give the company durable financial flexibility to withstand prolonged downcycles, fund working capital or capex, and pursue consolidation or opportunistic M&A. This materially reduces refinancing and solvency risk over the medium term.

Manufacturing Cost Leadership

Sustained lower unit costs improve margin resiliency in a commodity market and create a competitive buffer during pricing downturns. If cost improvements reflect structural process or energy efficiencies, they can support higher long-term profitability and better utilization economics versus peers.

EBITDA Turnaround

A return to positive EBITDA demonstrates operating leverage and that the business can generate operating profits when volumes and prices align. Durable EBITDA recovery supports self-funding of operations and reduces structural reliance on financing if margins persist with stable demand.

Negative Factors

Negative Cash Flow

Sustained negative operating and free cash flow depletes cash reserves and limits reinvestment capacity; even with a strong balance sheet today, continued cash burn would erode liquidity, constrain capex or expansion, and force financing or asset sales over the medium term.

Persistent Net Losses

Ongoing net losses and negative margins weaken return metrics and can erode equity over time, limiting strategic options. Persistent unprofitability also makes the firm more vulnerable to prolonged commodity price weakness and reduces buffer for investment in efficiency or growth.

Industry Overcapacity Risk

Chronic overcapacity in polysilicon markets structurally pressures selling prices and utilization, making margin recovery fragile. Even with internal improvements, external capacity additions or slow consolidation can re-compress returns and prolong the cycle to sustainable profitability.

Daqo New Energy Business Overview & Revenue Model

Company Description

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 Corp. was founded in 2006 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Daqo New Energy makes money primarily through the production and sale of high-purity polysilicon to solar manufacturers. The company sells its product to major solar wafer manufacturers, who then use it to produce solar cells and modules. Daqo's revenue streams are significantly influenced by polysilicon prices, production volumes, and long-term supply agreements with key clients. The company benefits from economies of scale and technological advancements that enhance production efficiency and cost-effectiveness. Additionally, strategic partnerships with industry players and a strong focus on maintaining high-quality standards contribute to Daqo's earnings and market position.

Daqo New Energy Financial Statement Overview

Summary

Daqo New Energy is currently facing a challenging financial landscape. The income statement shows declining revenues and profitability, impacting overall financial stability. The balance sheet remains fairly strong with no debt, but declining equity is a concern. Cash flow performance has deteriorated, raising questions about the company's ability to sustain operations without positive cash flow.

Income Statement

Daqo New Energy's income statement reveals a challenging financial period. The company experienced a significant drop in total revenue from $4.6 billion in 2022 to $1.03 billion in 2024, reflecting a sharp revenue decline. The gross profit margin turned negative in 2024, indicating the cost of goods sold exceeded revenue. Additionally, both EBIT and net income margins are negative, demonstrating declining operational and overall profitability. While the past showed strong growth, recent performance highlights instability and potential market challenges.

Balance Sheet

Daqo's balance sheet indicates a mixed financial position. Positive aspects include zero total debt in 2024, suggesting no leverage risk and a healthy cash position with $2.1 billion in cash and equivalents. However, stockholders' equity has decreased from 2023 to 2024, and the equity ratio remains stable but not improving. The company’s ability to maintain a debt-free status is commendable, yet declining equity may pose future challenges.

Cash Flow

Daqo's cash flow statement reveals pressure on cash generation. Operating cash flow turned negative in 2024, indicating potential difficulties in generating cash from core operations. Free cash flow has also significantly decreased, suggesting reduced financial flexibility. While the company previously enjoyed strong free cash flow growth, recent trends indicate a challenging cash flow environment that could impact future operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	639.65M	1.03B	2.31B	4.61B	1.68B	675.60M
Gross Profit	-218.83M	-212.93M	920.65M	3.41B	1.10B	233.99M
EBITDA	-124.43M	-179.88M	932.32M	3.15B	1.13B	256.54M
Net Income	-343.70M	-345.21M	429.55M	1.82B	748.92M	129.19M
Balance Sheet
Total Assets	6.34B	6.42B	7.43B	7.59B	3.34B	1.24B
Cash, Cash Equivalents and Short-Term Investments	982.90M	2.10B	3.04B	3.51B	1.00B	76.60M
Total Debt	0.00	6.82M	0.00	20.69M	0.00	243.09M
Total Liabilities	497.34M	560.38M	978.58M	989.49M	679.82M	440.23M
Stockholders Equity	4.35B	4.36B	4.76B	4.81B	2.16B	767.12M
Cash Flow
Free Cash Flow	-263.11M	-794.65M	429.20M	1.22B	130.73M	91.41M
Operating Cash Flow	-111.35M	-435.64M	1.62B	2.47B	638.99M	209.70M
Investing Cash Flow	-180.50M	-1.48B	-1.20B	-1.00B	-781.89M	-118.49M
Financing Cash Flow	1.11M	-47.38M	-795.40M	1.47B	736.23M	-95.47M

Daqo New Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DQ, the sentiment is Negative. The current price of 25.18 is below the 20-day moving average (MA) of 29.03, below the 50-day MA of 30.97, and above the 200-day MA of 23.07, indicating a neutral trend. The MACD of -1.67 indicates Positive momentum. The RSI at 28.35 is Positive, neither overbought nor oversold. The STOCH value of 8.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DQ.

Daqo New Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ON	73 Outperform	$24.28B	78.73	3.87%	―	-16.13%	-81.06%
ASX	69 Neutral	$41.98B	37.36	11.17%	2.29%	8.01%	10.41%
UMC	69 Neutral	$23.29B	18.03	10.97%	6.06%	5.87%	-20.93%
MCHP	62 Neutral	$40.37B	-165.41	-2.85%	2.79%	-23.36%	-131.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60 Neutral	$25.17B	49.28	3.00%	1.28%	-17.33%	-76.71%
DQ	53 Neutral	$1.68B	-4.91	-7.58%	―	-51.39%	-176.97%

Daqo New Energy Corporate Events

Daqo New Energy Announces Annual General Meeting for December 12, 2025

On November 18, 2025, Daqo New Energy Corp. announced that it will hold its annual general meeting on December 12, 2025, at its Shanghai office. Shareholders of record as of November 28, 2025, are entitled to attend. This meeting is significant for stakeholders as it provides an opportunity to discuss the company’s operations and future strategies, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (DQ) stock is a Hold with a $18.30 price target. To see the full list of analyst forecasts on Daqo New Energy stock, see the DQ Stock Forecast page.

Daqo New Energy Reports Strong Q3 2025 Results Amid Market Recovery

Daqo New Energy announced its unaudited financial results for the third quarter of 2025, highlighting a significant recovery in the polysilicon market. The company reported a positive EBITDA of $45.8 million and an adjusted net income of $3.7 million, reflecting improved market conditions and strategic operational adjustments. The company’s sales volume surged to 42,406 MT due to favorable pricing and increased customer confidence, while production costs decreased significantly, enhancing profitability. Daqo’s strong financial position, with $2.21 billion in cash and investments, provides strategic flexibility to navigate market recovery and pursue long-term opportunities.

The most recent analyst rating on (DQ) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Daqo New Energy stock, see the DQ Stock Forecast page.

Daqo New Energy to Release Q3 2025 Financial Results on October 27

Daqo New Energy Corp. announced plans to release its unaudited financial results for the third quarter of 2025 on October 27, 2025. The company will hold a conference call on the same day to discuss these results, which could provide insights into its operational performance and market positioning. This announcement is significant for stakeholders as it reflects the company’s ongoing transparency and commitment to keeping investors informed about its financial health and industry standing.

The most recent analyst rating on (DQ) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Daqo New Energy stock, see the DQ Stock Forecast page.