Daqo New Energy AI Stock Analysis
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Daqo New Energy (DQ) AI Stock Analysis
Daqo New Energy
(NYSE:DQ)
DQ scores in the low-to-mid range primarily because weak profitability and inconsistent/negative free cash flow outweigh its very strong, near-zero-debt balance sheet. Technicals remain pressured with the stock below key longer-term moving averages and a negative MACD. The latest earnings call adds some support via improving sequential trends, cost leadership, and clearer operational guidance, but risks remain elevated due to weak demand, high industry inventories, and uncertain pricing-policy enforcement.
Daqo New Energy Key Performance Indicators (KPIs)
Polysilicon Average Total Production CostReflects the total cost involved in producing polysilicon, offering a comprehensive view of production efficiency and cost control.
Daqo New Energy's polysilicon production costs have shown a notable decline, reaching $6.38 per kilogram in Q3 2025, the lowest in recent quarters. This cost efficiency aligns with the company's strategic focus on reducing expenses amid favorable market conditions. Despite a positive EBITDA and increased sales volume, industry overcapacity and regulatory changes in China pose challenges. However, Daqo's strong financial position and anticipated production targets suggest resilience and potential for stabilization in the polysilicon market.
The FlyDaqo New Energy (DQ) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $788.99M
- Dividend Yield
- ―
- Average Volume (3M)
- 719.83K
- Price to Earnings (P/E)
- -3.4
- Beta (1Y)
- 1.23
- Revenue Growth
- -20.69%
- EPS Growth
- 33.71%
- Country
- US
- Employees
- 3,842
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Semiconductors
Daqo New Energy Business Overview & Revenue Model
Company Description
Daqo New Energy Corp., operating with its subsidiaries, is engaged in the production and supply of polysilicon to companies manufacturing photovoltaic products across the People's Republic of China. This polysilicon is a fundamental material utilized...
How the Company Makes Money
Daqo makes money primarily by manufacturing and selling high-purity polysilicon to customers in the solar PV supply chain (typically wafer producers and other downstream manufacturers). Revenue is generated from product sales volumes (metric tons of...
Daqo New Energy Earnings Call Summary
The call was cautiously positive overall. The company reported a substantial sequential recovery in shipment volume and revenue, record-low production costs, narrower losses, a strong zero-debt balance sheet, and progress in its AIDC diversification initiative. However, profitability remained negative, revenue and EBITDA were below the prior-year quarter, industry inventory was approximately 700 thousand metric tons, near-term demand remained weak, and policy enforcement and pricing recovery were still uncertain.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company expects total polysilicon production volume in Q4 of 26 to be approximately 35 thousand-45 thousand metric tons and full-year 2026 production volume to be in the range of 175 thousand to 185 thousand thousand metric tons; Q4 sales volume is expected to be relatively similar to or close to production, while shipment is currently expected to be higher than Q4 production. The company’s benchmark is around 43 RMB per kilogram, with prices potentially recovering to 45 to 50 RMB per kilogram range, and Q4 cost is expected to be similar to Q3 cost, with 2027 cost also similar to Q3 cost, maybe with a slight reduction; Q4 inventory provision is expected to be less than Q3. For 2027, the goal is to maintain 20% to 25% of the market, global demand may show around a high single digit growth, China demand may be flat or even a small amount of Y-o-Y decrease, and demand may remain in the high 100 to 200-gigawatt range. For AIDC, construction is expected to be completed in the first half of next year, sales are expected to begin next year, operating cash flow is expected to be positive by the end of next year, overall CapEx next year is expected to be RMB 1 billion, gross margin will be around 15%-20%, and net profit margin will be high single digits.
Daqo New Energy Financial Statement Overview
Summary
Financial profile is mixed. The balance sheet is a major strength with effectively zero debt and sizable equity, providing flexibility. However, operating performance has deteriorated sharply with steep revenue contraction, deeply negative margins, and sustained losses. Cash flow quality is also weak with negative operating cash flow and negative free cash flow in 2024 and TTM, indicating ongoing cash burn despite some improvement versus the worst period.
Income Statement
22NegativeBalance Sheet
86Very PositiveCash Flow
34Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 505.86M | 665.41M | 1.03B | 2.31B | 4.61B | 1.68B |
| Gross Profit | -267.51M | -137.85M | -212.93M | 920.65M | 3.41B | 1.10B |
| EBITDA | -77.24M | -445.00K | -182.11M | 967.36M | 3.12B | 1.13B |
| Net Income | -229.93M | -170.51M | -345.21M | 429.55M | 1.82B | 748.92M |
Balance Sheet | ||||||
| Total Assets | 6.50B | 6.45B | 6.42B | 7.43B | 7.59B | 3.34B |
| Cash, Cash Equivalents and Short-Term Investments | 1.78B | 2.07B | 2.10B | 3.04B | 3.51B | 1.00B |
| Total Debt | 0 | 0 | 6.82M | 0 | 20.69M | 0 |
| Total Liabilities | 638.78M | 529.22M | 560.38M | 978.58M | 989.49M | 679.82M |
| Stockholders Equity | 4.37B | 4.41B | 4.36B | 4.76B | 4.81B | 2.16B |
Cash Flow | ||||||
| Free Cash Flow | -253.41M | -123.34M | -794.65M | 429.20M | 1.22B | 130.73M |
| Operating Cash Flow | -109.03M | 56.12M | -435.64M | 1.62B | 2.47B | 638.99M |
| Investing Cash Flow | 73.31M | -140.69M | -1.48B | -1.20B | -1.00B | -781.89M |
| Financing Cash Flow | -8.60M | -850.00K | -47.38M | -795.40M | 1.47B | 736.23M |
Daqo New Energy Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DQ, the sentiment is Neutral. The current price of 11.66 is above the 20-day moving average (MA) of 10.97, above the 50-day MA of 11.31, and below the 200-day MA of 16.48, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 61.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DQ.
Daqo New Energy Risk Analysis
Daqo New Energy disclosed 70 risk factors in its most recent earnings report. Daqo New Energy reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksDaqo New Energy Peers Comparison
Overall Rating
AXTI62Neutral
VECO58Neutral
ASYS53Neutral- DQ53Neutral
WOLF50Neutral
UCTT49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AXTI | 62Neutral | $2.58B | 100.28 | 5.40% | ― | 89.14% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| VECO | 58Neutral | $2.42B | 96.74 | 2.92% | ― | 6.58% | -49.53% |
| ASYS | 53Neutral | $211.15M | 46.54 | 4.95% | ― | -2.35% | ― |
| DQ | 53Neutral | $789.66M | -3.42 | -5.24% | ― | -20.69% | 33.71% |
| WOLF | 50Neutral | $1.41B | -2.61 | -66.17% | ― | -17.95% | -8.30% |
| UCTT | 49Neutral | $2.24B | 85.57 | 3.93% | ― | 15.81% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DQ | Daqo New Energy | 11.66 | -20.06 | -63.24% | |
| ASYS | Amtech Systems, Inc. | 12.71 | 5.38 | 73.40% | |
| AXTI | AXT Inc | 46.97 | 36.53 | 349.90% | |
| UCTT | Ultra Clean | 49.63 | 25.25 | 103.57% | |
| VECO | Veeco Instruments Inc | 40.93 | 11.63 | 39.69% | |
| WOLF | Wolfspeed Inc | 27.68 | 9.49 | 52.17% |
Daqo New Energy Corporate Events
Daqo New Energy Narrows Losses as Polysilicon Market Rebounds in Q3 2026
In a press release dated October 27, 2026, Daqo New Energy reported unaudited financial results for the third quarter ended September 30, 2026, showing a sharp rebound in operating metrics but continued losses. Revenue surged to $194.2 million from $...
Daqo New Energy Sets October 27 Release for Q3 2026 Results
On October 13, 2026, Daqo New Energy Corp. announced plans to release its unaudited financial results for the third quarter ended September 30, 2026, before U.S. markets open on October 27, 2026. The company will host a conference call the same day a...
Daqo New Energy Narrows Losses but Faces Margin Pressure in Q2 2026
Daqo New Energy reported unaudited financial results for the quarter ended June 30, 2026, showing that while polysilicon production remained steady, weak solar PV demand and elevated inventories continued to weigh heavily on profitability. The compan...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026