Daqo New Energy Corp

Find Ratings Reports
DQ : NYSE : Technology
$22.95 up 0.11 | 0.48%
Today's Range: 22.3178 - 23.0
Avg. Daily Volume: 60900.0
01/19/17 - 4:02 PM ET

Financial Analysis


DAQO NEW ENERGY CORP's gross profit margin for the third quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. DAQO NEW ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.23 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.39% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)56.4647.68
EBITDA ($mil)26.6714.96
EBIT ($mil)18.156.65
Net Income ($mil)11.23.08


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)29.1668.68
Total Assets ($mil)664.3717.36
Total Debt ($mil)242.05311.36
Equity ($mil)275.99235.09


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin54.637.74
EBITDA Margin47.2431.37
Operating Margin32.1513.95
Sales Turnover0.370.24
Return on Assets7.370.96
Return on Equity17.742.95
Debt Q3 FY16 Q3 FY15
Current Ratio0.330.42
Debt/Capital0.470.57
Interest Expense3.083.06
Interest Coverage5.92.17


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)10.438.94
Div / share0.00.0
EPS1.050.29
Book value / share26.4526.29
Institutional Own % n/a n/a
Avg Daily Volume59961.093182.0

Valuation


HOLD. DAQO NEW ENERGY CORP's P/E ratio indicates a significant discount compared to an average of 32.67 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 0.80 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.52. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DQ 4.60 Peers 32.67   DQ 3.65 Peers 18.82

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DQ 4.75 Peers 19.26   DQ 0.02 Peers 1.90

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DQ 0.80 Peers 4.52   DQ 550.70 Peers 17.50

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 0.90 Peers 4.66   DQ 42.01 Peers 12.67

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DQ has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades