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Daqo New Energy Corp
DQ : NYSE : Technology
$14.01 -2.30 | -14.00%
Today's Range: 13.80 - 16.00
Avg. Daily Volume: 65,200
02/08/16 - 2:44 PM ET

Financial Analysis


DAQO NEW ENERGY CORP's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. DAQO NEW ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 14.58% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)47.6847.87
EBITDA ($mil)14.9616.47
EBIT ($mil)6.659.46
Net Income ($mil)3.085.89


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)68.6830.02
Total Assets ($mil)717.36656.6
Total Debt ($mil)311.36275.09
Equity ($mil)235.09205.17


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin37.7440.08
EBITDA Margin31.3734.41
Operating Margin13.9519.75
Sales Turnover0.240.26
Return on Assets0.960.76
Return on Equity2.952.45
Debt Q3 FY15 Q3 FY14
Current Ratio0.420.36
Debt/Capital0.570.57
Interest Expense3.063.65
Interest Coverage2.172.59


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)8.948.94
Div / share0.00.0
EPS0.290.64
Book value / share26.2922.94
Institutional Own % n/a n/a
Avg Daily Volume64484.079545.0

Valuation


SELL. DAQO NEW ENERGY CORP's P/E ratio indicates a premium compared to an average of 21.28 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 0.65 indicates a significant discount versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 4.14. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DQ 23.94 Peers 21.28   DQ 2.39 Peers 16.77

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

DQ is trading at a premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DQ is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DQ 6.77 Peers 17.07   DQ NM Peers 3.11

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

DQ is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DQ's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DQ 0.65 Peers 4.14   DQ 69.04 Peers 35.28

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DQ is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DQ is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DQ 0.87 Peers 3.95   DQ 1.97 Peers 9.49

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DQ is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DQ significantly trails its peers on the basis of sales growth

 

 

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