Daqo New Energy (DQ) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: N/A
• Average Volume (3M): 692.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -51.39%
• EPS Growth: -176.97%
• Country: US
• Employees: 4,749
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.11
• Shares Outstanding: 67,056,720
• 10 Day Avg. Volume: 512,848
• 30 Day Avg. Volume: 692,500
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: -4.60
• Enterprise Value/Ebitda: -31.51
• 1Y Price Target: $18.13
• Price Target Upside: -27.13% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): -1.69
• Revenue Forecast (FY): $1.07B

• Rating: 53 Neutral
• Price Target: $24.50 ▼(-1.53% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mixed fundamentals: a very strong, low-debt balance sheet and improving operations, but profitability and free cash flow remain negative. Technicals are also weak (below key moving averages with negative MACD), while valuation is hard to support due to losses. Earnings-call guidance and cost reductions provide a moderate positive offset, but execution and pricing risk remain key.

Positive Factors

Very strong balance sheet and liquidity

Daqo’s minimal leverage and roughly $2.27B in cash, short-term investments, notes receivable and fixed deposits give durable financial flexibility. This ample liquidity can fund operations, sustain through pricing cycles, support guided capex and enable strategic M&A or buybacks when policy permits.

Low-cost producer with industry-scale capacity

Being a low-cost, large-scale polysilicon producer provides a structural competitive advantage in a commoditized, cyclical industry. Cost leadership helps preserve margins through downturns, supports market share gains in consolidation, and increases resilience to ASP volatility over a multi‑quarter horizon.

Supportive regulatory tailwinds and clear production guidance

Policy actions to limit below-cost selling and encourage consolidation are a structural positive for higher-quality, low-cost producers like Daqo. Coupled with management’s explicit 2026 volume guidance, this supports steadier utilization, pricing stabilization and durable recovery in unit economics over coming quarters.

Negative Factors

Persistent negative margins and net losses

Daqo remains below sustained profitability: gross and operating margins turned negative and net losses persisted in 2024–2025. Unit-level unprofitability reduces return on capital and leaves earnings highly sensitive to commodity price swings, limiting the company’s structural ability to self-fund growth without improvement.

Free cash flow still negative and ongoing capex needs

Although operating cash flow recovered in 2025, persistent negative free cash flow driven by heavy investing means the firm must rely on liquidity or external financing for near-term capital needs. Continued capex commitments could pressure cash balances or delay a durable FCF turnaround if margins do not sustainably improve.

Pricing volatility and counterparty/receivable risk

Polysilicon price swings and futures volatility create persistent revenue and margin uncertainty for a commodity producer. Separately, material receivable/credit exposure to a local government-affiliated entity (reserve recognized) highlights structural collection risk in parts of the business and can impair cash conversion under stressed markets.

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

Financials are mixed: the balance sheet is very strong with minimal debt and large liquidity, but earnings remain weak after a sharp downturn—2024–2025 posted losses and negative margins. 2025 showed improvement (narrower losses and positive operating cash flow), but free cash flow is still negative, keeping the overall financial performance only moderately rated.

Income Statement

Results have deteriorated sharply versus the 2021–2022 peak: the company moved from very strong profitability (2021–2022) to losses in 2024 and 2025, with gross margin, operating margin, and net margin turning negative. Revenue also fell materially from 2022 to 2024 before stabilizing with modest growth in 2025. The key positive is that 2025 losses narrowed versus 2024 and revenue returned to growth, but profitability remains under heavy pressure.

Balance Sheet

The balance sheet is a clear strength: total debt is minimal to none across most years and remains extremely low relative to equity, indicating very low financial leverage. Equity is large and relatively stable, providing a strong cushion through the downturn. The main weakness is that returns on equity turned negative in 2024–2025 due to net losses, which reduces the effectiveness of the capital base despite the strong capitalization.

Cash Flow

Cash generation has weakened meaningfully from the 2022–2023 period. Operating cash flow was deeply negative in 2024 but turned positive in 2025, showing improvement in cash earnings quality and working-capital dynamics. However, free cash flow remains negative in 2024–2025 and declined further in 2025, suggesting ongoing cash burn after investment spending. Overall, cash flow is improving off the trough, but not yet sustainably positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	665.41M	1.03B	2.31B	4.61B	1.68B
Gross Profit	-137.85M	-212.93M	920.65M	3.41B	1.10B
EBITDA	-30.11M	-179.88M	932.32M	3.15B	1.13B
Net Income	-170.51M	-345.21M	429.55M	1.82B	748.92M
Balance Sheet
Total Assets	6.45B	6.42B	7.43B	7.59B	3.34B
Cash, Cash Equivalents and Short-Term Investments	2.07B	2.10B	3.04B	3.51B	1.00B
Total Debt	0.00	6.82M	0.00	20.69M	0.00
Total Liabilities	529.22M	560.38M	978.58M	989.49M	679.82M
Stockholders Equity	4.41B	4.36B	4.76B	4.81B	2.16B
Cash Flow
Free Cash Flow	-123.34M	-794.65M	429.20M	1.22B	130.73M
Operating Cash Flow	56.12M	-435.64M	1.62B	2.47B	638.99M
Investing Cash Flow	-140.69M	-1.48B	-1.20B	-1.00B	-781.89M
Financing Cash Flow	-850.00K	-47.38M	-795.40M	1.47B	736.23M

Daqo New Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 24.88 is above the 20-day moving average (MA) of 24.47, below the 50-day MA of 26.85, and above the 200-day MA of 24.59, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 41.81 is Neutral, 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
UMC	77 Outperform	$26.23B	19.47	11.43%	6.06%	5.87%	-20.93%
ON	64 Neutral	$26.19B	199.16	1.47%	―	-16.13%	-81.06%
STM	64 Neutral	$29.95B	176.34	0.93%	1.28%	-17.33%	-76.71%
ASX	63 Neutral	$54.00B	40.41	12.53%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MCHP	58 Neutral	$40.39B	-259.26	-1.09%	2.79%	-23.36%	-131.15%
DQ	53 Neutral	$1.61B	-9.48	-3.90%	―	-51.39%	-176.97%

Daqo New Energy Corporate Events

Daqo New Energy Sets February 26 Release for Q4 and Full-Year 2025 Results

Daqo New Energy Corp., a Shanghai-based producer of high-purity polysilicon for solar PV manufacturers worldwide, has built a 305,000 metric ton nameplate capacity and is recognized as one of the industry’s lowest-cost suppliers. Its products feed into the broader solar value chain, supporting manufacturers of ingots, wafers, cells and solar modules.

On February 12, 2026, Daqo New Energy said it will release its unaudited financial results for the fourth quarter and full year ended December 31, 2025 before U.S. markets open on February 26, 2026. The company will host a same-day earnings conference call and webcast, offering investors and analysts a detailed update on recent performance and operating trends.

The most recent analyst rating on (DQ) stock is a Sell with a $18.13 price target. To see the full list of analyst forecasts on Daqo New Energy stock, see the DQ Stock Forecast page.

Daqo New Energy Flags Sharply Narrowed 2025 Loss at Core Xinjiang Subsidiary

On January 16, 2026, Daqo New Energy announced that its majority-owned subsidiary Xinjiang Daqo New Energy has submitted a preliminary estimate to the Shanghai Stock Exchange indicating a net loss attributable to its shareholders for fiscal year 2025 of between RMB1.0 billion and RMB1.3 billion, a substantial improvement from the RMB2.7 billion net loss recorded in 2024. Because Xinjiang Daqo contributes the majority of Daqo New Energy’s revenue and net income and is 72.8% owned by the parent, the narrower loss range suggests a potential easing of financial pressure on the group, although the company emphasized that the figures are based on PRC GAAP, remain subject to final closing adjustments, and may differ from the consolidated U.S. GAAP results that investors ultimately see.

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.