Daqo New Energy Corp

Find Ratings Reports
DQ : NYSE : Technology
$24.37 -0.22 | -0.89%
Today's Range: 23.78 - 24.83
Avg. Daily Volume: 70,600
08/25/16 - 3:59 PM ET

Financial Analysis


DAQO NEW ENERGY CORP's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. DAQO NEW ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.28 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 5.94% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)58.3942.17
EBITDA ($mil)21.9210.97
EBIT ($mil)13.314.08
Net Income ($mil)8.331.18


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)35.7332.17
Total Assets ($mil)672.44716.87
Total Debt ($mil)269.43257.09
Equity ($mil)252.13237.98


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin44.6337.12
EBITDA Margin37.5326.0
Operating Margin22.799.68
Sales Turnover0.30.26
Return on Assets2.982.11
Return on Equity7.976.38
Debt Q1 FY16 Q1 FY15
Current Ratio0.350.34
Debt/Capital0.520.52
Interest Expense3.913.22
Interest Coverage3.411.27


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)10.438.94
Div / share0.00.0
EPS0.790.12
Book value / share24.1726.61
Institutional Own % n/a n/a
Avg Daily Volume70486.077090.0

Valuation


HOLD. DAQO NEW ENERGY CORP's P/E ratio indicates a significant discount compared to an average of 41.69 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 1.02 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 4.32. 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 12.92 Peers 41.69   DQ 2.93 Peers 18.25

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 5.46 Peers 19.44   DQ 0.05 Peers 2.67

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 1.02 Peers 4.32   DQ 10.46 Peers -2.97

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 1.27 Peers 5.17   DQ 10.32 Peers 3.93

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