Daqo New Energy (DQ)
NYSE:DQ
Top Page
Daqo New Energy
(NYSE:DQ)
Select Model
Select Model
Rating:53Neutral
Price Target:
$21.50
▲(1.85% Upside)
Action:ReiteratedDate: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
Extremely low debt and a large equity base provide durable financial flexibility through cyclical solar downturns. Strong liquidity and low leverage reduce refinancing and solvency risk, enabling the company to fund operations, weather price troughs, and pursue opportunistic consolidation over months.
Negative Factors
Negative gross and net margins
Persistent unit-level unprofitability means the business remains sensitive to ASPs; until gross margins sustainably turn positive, operating leverage prevents reliable earnings conversion. This limits durable profitability even with cost cuts and requires sustained price recovery to restore net income.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
Extremely low debt and a large equity base provide durable financial flexibility through cyclical solar downturns. Strong liquidity and low leverage reduce refinancing and solvency risk, enabling the company to fund operations, weather price troughs, and pursue opportunistic consolidation over months.
Read all positive factors
Daqo New Energy (DQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)660.75K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-51.39%
EPS Growth-176.97%
CountryUS
Employees4,749
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.11
Shares Outstanding67,056,720
10 Day Avg. Volume526,865
30 Day Avg. Volume660,749
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 Cap0.31
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit-3.15
Enterprise Value/Ebitda-34.35
Forecast
1Y Price Target
$21.57Price Target Upside2.18% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-1.38
Revenue Forecast (FY)$1.03B
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...
How the Company Makes Money
Daqo New Energy makes money primarily by manufacturing and selling high-purity polysilicon. Its core revenue stream is product sales to customers that use polysilicon as an input for making solar wafers (and subsequently solar cells and modules). ...
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 Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a cautiously constructive tone: management highlighted meaningful operational and financial improvements (positive EBITDA, positive operating cash flow, record low cash costs, strong liquidity, and guidance for higher 2026 production) and emphasized supportive regulatory initiatives to rebalance the industry. At the same time, material challenges remain, including a large YoY revenue and production decline, continued full-year gross losses and a sizable net loss, pricing volatility, and some credit/receivables risk. Overall, the company appears to be stabilizing and positioned to benefit from industry recovery but is not yet fully back to profitability.Positive Updates
Utilization and Production in Line with Guidance
Utilization improved from 33% in Q1 to 55% in Q4 2025; annual production was 123,652 metric tons, within guidance of 121,000–124,000 MT.
Negative Updates
Revenue Decline
Full-year revenue fell to $665 million in 2025 from $1.03 billion in 2024, a decline of approximately 35.4%, driven by lower sales volume and lower ASPs.
Read all updates
Q4-2025 Updates
Positive
Negative
Utilization and Production in Line with Guidance
Utilization improved from 33% in Q1 to 55% in Q4 2025; annual production was 123,652 metric tons, within guidance of 121,000–124,000 MT.
Read all positive updates
Company Guidance
Management's guidance centered on production, costs, capital spending and policy tempo: they expect Q1 2026 polysilicon production of about 35,000–40,000 metric tons and full‑year 2026 production of 140,000–170,000 metric tons (for context, 2025 production was 123,652 MT in line with prior guidance of 121k–124k and 2025 sales were 126,707 MT); 2026 capital expenditures are forecast at roughly $100–150 million. Cost and price guidance: Q4 cash cost hit a record low of $4.46/kg (total production cost $5.83/kg; idle facility cost $0.74/kg), and management expects Q1–Q2 cash costs roughly in line with Q4 with further reductions in H2 2026; they cited a near‑term pricing floor of about RMB 53–54/kg under the Pricing Law. Liquidity and cash flow: they expect free cash flow to improve and turn positive, especially in H2, after 2025 EBITDA of $1.7M (vs. -$337M in 2024) and revenue of $665M, and they finished 2025 with ample liquidity (cash $980M, short‑term investments $114M, notes receivable ~$135.5M, fixed‑term deposits ~972M — ~ $2.27B total liquid assets). Finally, management said buybacks and futures participation remain under review pending policy clarity, and they are “open‑minded” to M&A/consolidation aligned with regulatory anti‑involution efforts.Daqo New Energy Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
83
Very Positive
Cash Flow
41
Neutral
| 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
Negative
21.11
Price Trends
23.61
Negative
27.17
Negative
25.56
Negative
Market Momentum
-0.80
Negative
39.43
Neutral
48.80
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 21.11 is below the 20-day moving average (MA) of 22.00, below the 50-day MA of 23.61, and below the 200-day MA of 25.56, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.80 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.08B | 14.74 | 11.36% | 6.06% | 5.87% | -20.93% | |
64 Neutral | $24.50B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $49.38B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $35.50B | 246.12 | -1.42% | 2.79% | -23.36% | -131.15% | |
56 Neutral | $29.87B | -216.33 | 0.97% | 1.28% | -17.33% | -76.71% | |
53 Neutral | $1.41B | -11.69 | -3.92% | ― | -51.39% | -176.97% |
* Technology Sector Average
DQ
Daqo New Energy
21.11
5.25
33.10%
ASX
ASE Technology Holding Co
22.28
14.89
201.33%
MCHP
Microchip
65.60
28.62
77.37%
ON
ON Semiconductor
62.19
27.11
77.28%
STM
STMicroelectronics
34.32
15.63
83.63%
UMC
United Micro
8.67
2.82
48.13%
Daqo New Energy Corporate Events
Daqo New Energy Narrows 2025 Losses as Polysilicon Market Begins to Rebound
Mar 2, 2026
On February 26, 2026, Daqo New Energy reported unaudited results for the fourth quarter and full year 2025, showing higher polysilicon production efficiency but continued losses amid a still-weak pricing environment. In Q4 2025, production jumped ...
Daqo New Energy Sets February 26 Release for Q4 and Full-Year 2025 Results
Feb 12, 2026
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 product...
Daqo New Energy Flags Sharply Narrowed 2025 Loss at Core Xinjiang Subsidiary
Jan 16, 2026
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 2...
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.