Daqo New Energy Corp

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DQ : NYSE : Technology
$27.6 -0.62 | -2.2%
Today's Range: 27.2 - 28.06
Avg. Daily Volume: 97600.0
09/21/17 - 12:12 PM ET

Financial Analysis


DAQO NEW ENERGY CORP's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DAQO NEW ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.32 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 18.82% 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 FY17 Q2 FY16
Net Sales ($mil)76.7571.6
EBITDA ($mil)29.8235.34
EBIT ($mil)20.226.74
Net Income ($mil)12.0919.84


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)49.8542.86
Total Assets ($mil)670.63662.7
Total Debt ($mil)245.38253.95
Equity ($mil)314.4264.59


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin45.153.85
EBITDA Margin38.8549.35
Operating Margin26.3237.35
Sales Turnover0.40.36
Return on Assets7.56.16
Return on Equity16.015.44
Debt Q2 FY17 Q2 FY16
Current Ratio0.430.35
Debt/Capital0.440.49
Interest Expense5.293.49
Interest Coverage3.827.67


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)10.5210.43
Div / share0.00.0
EPS1.141.87
Book value / share29.8925.36
Institutional Own % n/a n/a
Avg Daily Volume90439.094351.0

Valuation


HOLD. DAQO NEW ENERGY CORP's P/E ratio indicates a significant discount compared to an average of 46.90 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 0.89 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 5.49. 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 5.64 Peers 46.90   DQ 2.66 Peers 18.33

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 5.16 Peers 21.72   DQ 0.12 Peers 1.12

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 0.89 Peers 5.49   DQ 22.27 Peers 122.55

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.

 

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

However, DQ is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DQ 1.05 Peers 5.24   DQ 11.34 Peers 25.22

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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