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Daqo New Energy Corp
DQ : NYSE : Technology
$18.12 -0.03 | -0.17%
Today's Range: 17.90 - 19.44
Avg. Daily Volume: 85,700
10/07/15 - 3:59 PM ET

Financial Analysis

DAQO NEW ENERGY CORP's gross profit margin for the second quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. DAQO NEW ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.36 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 20.47% 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 Q2 FY15 Q2 FY14
Net Sales ($mil)35.043.72
EBITDA ($mil)8.2715.22
EBIT ($mil)1.238.34
Net Income ($mil)-0.934.52

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)95.0977.68
Total Assets ($mil)778.17668.82
Total Debt ($mil)308.48277.51
Equity ($mil)237.55197.18

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin32.2838.8
EBITDA Margin23.6234.81
Operating Margin3.5119.08
Sales Turnover0.220.23
Return on Assets1.25-1.66
Return on Equity4.1-5.66
Debt Q2 FY15 Q2 FY14
Current Ratio0.440.49
Interest Expense2.643.86
Interest Coverage0.472.16

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)8.946.94
Div / share0.00.0
Book value / share26.5628.42
Institutional Own % n/a n/a
Avg Daily Volume101262.098925.0


SELL. This stock's P/E ratio indicates a discount compared to an average of 23.23 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 19.38. For additional comparison, its price-to-book ratio of 0.60 indicates a significant discount versus the S&P 500 average of 2.58 and a significant discount versus the industry average of 4.38. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DAQO NEW ENERGY CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DQ 14.92 Peers 23.23   DQ 3.51 Peers 14.30

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DQ is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DQ 4.36 Peers 16.83   DQ NM Peers 0.70

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DQ is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DQ 0.60 Peers 4.38   DQ 161.98 Peers 48.79

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DQ 0.81 Peers 3.78   DQ 11.67 Peers 13.19

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 trails its peers on the basis of sales growth



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