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Daqo New Energy
(NYSE:DQ)
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Rating:46Neutral
Price Target:
$13.00
▼(-40.53% Downside)
Action:Reiterated
Date:06/26/26
DQ’s score is held down primarily by weak financial performance (losses and negative free cash flow) and bearish technicals (price below all key moving averages with negative MACD). Offsetting factors are a very strong balance sheet (zero debt and substantial liquidity) and a mixed earnings outlook where any recovery depends heavily on external price enforcement and industry conditions.
Positive Factors
Strong balance sheet
Zero financial leverage and roughly $2.0B in cash-convertible assets give the company durable liquidity to survive cyclical troughs, fund working capital, and pursue strategic options. This capacity supports disciplined utilization cuts and investments without immediate funding stress, preserving optionality over months.
Negative Factors
Deep profitability deterioration
Sustained negative gross and net margins reflect a structural mismatch between realized selling prices and production costs. Persistent losses erode return metrics and limit reinvestment capacity; absent durable price improvements or structural cost reductions, profitability recovery remains uncertain over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Zero financial leverage and roughly $2.0B in cash-convertible assets give the company durable liquidity to survive cyclical troughs, fund working capital, and pursue strategic options. This capacity supports disciplined utilization cuts and investments without immediate funding stress, preserving optionality over months.
Read all positive factors
Daqo New Energy Key Performance Indicators (KPIs)
Any
Polysilicon Average Total Production Cost
Reflects the total cost involved in producing polysilicon, offering a comprehensive view of production efficiency and cost control.
Reflects the total cost involved in producing polysilicon, offering a comprehensive view of production efficiency and cost control.
Data provided by:
The Fly
The FlyDaqo New Energy (DQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$868.83M
Dividend YieldN/A
Average Volume (3M)1.02M
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-22.84%
EPS Growth57.26%
CountryUS
Employees4,749
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-2.78
Shares Outstanding67,666,140
10 Day Avg. Volume1,314,965
30 Day Avg. Volume1,021,435
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.45
Price to Sales (P/S)2.99
P/FCF Ratio-16.15
Enterprise Value/Market Cap0.48
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit-2.14
Enterprise Value/Ebitda-13.44
Forecast
1Y Price Target
$27.25Price Target Upside24.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.8
Revenue Forecast (FY)$696.65M
Daqo New Energy Business Overview & Revenue Model
Company Description
Daqo New Energy Corp., operating with its subsidiaries, is engaged in the production and supply of polysilicon to companies manufacturing photovoltaic products across the People's Republic of China. This polysilicon is a fundamental material utili...
How the Company Makes Money
Daqo primarily makes money by producing and selling high-purity polysilicon to customers in the solar PV manufacturing ecosystem (e.g., wafer and cell manufacturers). Its revenue model is largely volume-and-price driven: (1) Revenue stream—polysil...
Daqo New Energy Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: operationally the company demonstrated strengths (0 debt, ~USD 2.0B liquidity in cash-convertible assets, production above guidance, and RMB cost improvement) and strategic discipline (refusal to sell below cost, engagement with authorities). However, severe near-term financial deterioration—large revenue collapse, USD 98.4M inventory impairment, substantial gross and operating losses, negative EBITDA, diminished cash balance and elevated operating cash outflow—outweigh the positives in the quarter. The outlook depends heavily on potential government enforcement of price laws and industry consolidation; absent policy action the company may reduce utilization and compete in a lower-price environment.Positive Updates
Strong Liquidity and Zero Debt
Convertible-to-cash assets totaled ~USD 2.0 billion as of March 31, 2026 (cash USD 559.4M, short-term investments USD 288.3M, held-to-maturity USD 50.3M, bank notes receivable USD 20.8M, fixed-term deposits USD 1.1B). Company reported 0 debt, supporting strategic flexibility in a downturn.
Negative Updates
Severe Revenue Decline
Q1 2026 revenue was USD 26.7 million, down 88.0% sequentially from USD 221.7M (Q4 2025) and down 78.5% year-over-year from USD 124.0M (Q1 2025).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Liquidity and Zero Debt
Convertible-to-cash assets totaled ~USD 2.0 billion as of March 31, 2026 (cash USD 559.4M, short-term investments USD 288.3M, held-to-maturity USD 50.3M, bank notes receivable USD 20.8M, fixed-term deposits USD 1.1B). Company reported 0 debt, supporting strategic flexibility in a downturn.
Read all positive updates
Company Guidance
Guidance: Daqo expects Q2 polysilicon production of approximately 35,000–40,000 metric tons and full‑year 2026 production of 140,000–170,000 metric tons; after operating at roughly 57% nameplate utilization in Q1, management plans to maintain ~50–55% utilization into Q2 (but will reduce utilization if government enforcement of price rules does not materialize). Management said a new government cost determination and updated price guidance is expected around mid‑year/June and could enforce selling above production cost (management expects a possible guidance range of ~RMB 40–45/kg inclusive of VAT), while absent enforcement they see cash market Q2 prices around RMB 35–40/kg (with some futures contracts in the RMB 38–41/kg range); N‑type prices fell from RMB 48–55/kg at end‑2025 to RMB 35–37/kg at end‑Q1. Q1 company metrics: production 43,402 metric tons (above prior 35k–40k guidance), sales 4,482 metric tons, ASP up 2.3% sequentially to USD 5.96/kg; industry monthly supply was ~93,000 metric tons (industry utilization ~39%) with inventories near 500k–600k metric tons. The company highlighted liquidity and balance‑sheet strength with 0 debt and about USD 2.0 billion in cash‑convertible assets (USD 559.4m cash, USD 288.3m short‑term investments, USD 20.8m notes receivable, USD 50.3m held‑to‑maturity, USD 1.1bn fixed‑term deposits).Daqo New Energy Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
26
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 568.81M | 665.41M | 1.03B | 2.31B | 4.61B | 1.68B |
| Gross Profit | -195.95M | -137.85M | -212.93M | 920.65M | 3.41B | 1.10B |
| EBITDA | -31.19M | 3.01M | -179.88M | 967.36M | 3.12B | 1.13B |
| Net Income | -187.34M | -170.51M | -345.21M | 429.55M | 1.82B | 748.92M |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.45B | 6.42B | 7.43B | 7.59B | 3.34B |
| Cash, Cash Equivalents and Short-Term Investments | 1.92B | 2.07B | 2.10B | 3.04B | 3.51B | 1.00B |
| Total Debt | 0.00 | 0.00 | 6.82M | 0.00 | 20.69M | 0.00 |
| Total Liabilities | 449.58M | 529.22M | 560.38M | 978.58M | 989.49M | 679.82M |
| Stockholders Equity | 4.39B | 4.41B | 4.36B | 4.76B | 4.81B | 2.16B |
Cash Flow | ||||||
| Free Cash Flow | -203.37M | -123.34M | -794.65M | 429.20M | 1.22B | 130.73M |
| Operating Cash Flow | -52.61M | 56.12M | -435.64M | 1.62B | 2.47B | 638.99M |
| Investing Cash Flow | -206.33M | -140.69M | -1.48B | -1.20B | -1.00B | -781.89M |
| Financing Cash Flow | -8.64M | -850.00K | -47.38M | -795.40M | 1.47B | 736.23M |
Daqo New Energy Technical Analysis
Negative
21.86
Price Trends
17.75
Negative
20.29
Negative
24.73
Negative
Market Momentum
-1.29
Positive
25.94
Positive
7.43
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 21.86 is above the 20-day moving average (MA) of 15.01, above the 50-day MA of 17.75, and below the 200-day MA of 24.73, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 25.94 is Positive, neither overbought nor oversold. The STOCH value of 7.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DQ.
Daqo New Energy Risk Analysis
Daqo New Energy disclosed 70 risk factors in its most recent earnings report. Daqo New Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Daqo New Energy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $64.70B | 40.90 | 13.50% | 6.06% | 7.52% | 17.94% | |
63 Neutral | $47.66B | 83.55 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $86.99B | 58.25 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $54.08B | 267.19 | 3.05% | 2.79% | 7.08% | ― | |
62 Neutral | $63.60B | 420.08 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | $868.83M | -4.62 | -4.29% | ― | -22.84% | 57.26% |
* Technology Sector Average
DQ
Daqo New Energy
12.84
-2.33
-15.36%
ASX
ASE Technology Holding Co
40.21
30.15
299.54%
MCHP
Microchip
87.93
19.42
28.34%
ON
ON Semiconductor
90.65
38.24
72.96%
STM
STMicroelectronics
71.42
41.28
136.98%
UMC
United Micro
25.58
17.93
234.38%
Daqo New Energy Corporate Events
Daqo New Energy to Invest Up to RMB 6 Billion in AI Data Center Energy Solutions Base
Jun 3, 2026
On June 3, 2026, Daqo New Energy said its subsidiary Daqo Shanghai signed an investment agreement with the Kunshan Economic and Technological Development Zone to build a new manufacturing base for next-generation energy solutions for AI data cente...
Daqo New Energy Swings to Deep Q1 2026 Loss as Polysilicon Sales Slump Amid Market Glut
Apr 29, 2026
Daqo New Energy reported unaudited first-quarter 2026 results on April 29, 2026, showing polysilicon production of 43,402 MT, above guidance, but sales volumes plunged to 4,482 MT as the company avoided selling below cost amid weak prices. Revenue...
Daqo New Energy Sets April 29, 2026 Date to Report First-Quarter Results
Apr 15, 2026
Daqo New Energy Corp., a major low-cost producer of high-purity polysilicon for the global solar PV supply chain, operates 305,000 metric tons of nameplate capacity and sells its output to downstream manufacturers that turn polysilicon into solar ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.