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Daqo New Energy
(NYSE:DQ)
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Rating:50Neutral
Price Target:
$13.50
▼(-0.15% Downside)
Action:Reiterated
Date:08/22/26
DQ’s score is held back primarily by very weak current profitability and cash flow (deep losses, negative margins, and negative free cash flow). Offsetting this is a strong balance sheet with zero debt and strong liquidity, plus improving sequential trends and above-guidance production noted on the earnings call. Technicals are mixed/neutral and valuation is constrained by the negative P/E, keeping the overall score near the middle of the range.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet and substantial liquid assets reduce refinancing risk and provide financial flexibility to withstand a prolonged polysilicon downturn, fund essential operations, and pursue selective strategic investments without relying heavily on external capital.
Negative Factors
Polysilicon Pricing Below Cost
Selling prices below total and near cash production costs make the core business structurally loss-making while oversupply persists. Margin recovery therefore depends on industry capacity rationalization or demand improvement, neither of which is assured over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-Free Balance Sheet
A debt-free balance sheet and substantial liquid assets reduce refinancing risk and provide financial flexibility to withstand a prolonged polysilicon downturn, fund essential operations, and pursue selective strategic investments without relying heavily on external capital.
Read all positive factors
Daqo New Energy Key Performance Indicators (KPIs)
Any
Polysilicon Average Total Production Cost
Reflects the total cost involved in producing polysilicon, offering a comprehensive view of production efficiency and cost control.
Reflects the total cost involved in producing polysilicon, offering a comprehensive view of production efficiency and cost control.
Data provided by:
The Fly
The FlyDaqo New Energy (DQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$914.85M
Dividend YieldN/A
Average Volume (3M)791.21K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-6.25%
EPS Growth51.32%
CountryUS
Employees3,842
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-2.83
Shares Outstanding67,666,140
10 Day Avg. Volume620,875
30 Day Avg. Volume791,205
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.45
Price to Sales (P/S)2.99
P/FCF Ratio-16.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$16.00Price Target Upside18.34% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-2.82
Revenue Forecast (FY)$561.81M
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 utili...
How the Company Makes Money
Daqo New Energy makes money mainly by manufacturing and selling high-purity polysilicon to downstream solar-industry customers (typically wafer manufacturers) under supply contracts and spot sales. Revenue is recognized from product sales based on...
Daqo New Energy Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
The call conveyed a mix of encouraging operational and financial improvements versus significant industry headwinds. Management highlighted sequential revenue recovery, production above guidance, reduced inventory impairments, EBITDA and margin improvements, strong liquidity and strategic diversification into AIDC. Offsetting these positives are persistently weak polysilicon prices below costs, continued net losses, elevated industry inventories, and a large year-to-date operating cash burn; new initiatives (AIDC and semiconductor poly) are early-stage and carry timing/execution risk. Overall the improvements are meaningful but the company still faces substantial cyclical and liquidity risks until prices and market demand recover.Positive Updates
Resumed Sales and Strong Sequential Revenue Recovery
Revenue rose to $62.7M in Q2 2026 from $26.7M in Q1 2026, a sequential increase of ~135%, driven by resumption of sales in June and higher shipment volumes.
Negative Updates
Polysilicon Prices Below Production Costs
Average selling price fell to $4.04/kg in June with N-type market prices declining from RMB 35–37/kg at end-Q1 to RMB 31–34/kg at end-Q2. ASP is below reported total production cost ($5.95/kg) and near or below cash cost (~$4.57/kg), pressuring margins.
Read all updates
Q2-2026 Updates
Positive
Negative
Resumed Sales and Strong Sequential Revenue Recovery
Revenue rose to $62.7M in Q2 2026 from $26.7M in Q1 2026, a sequential increase of ~135%, driven by resumption of sales in June and higher shipment volumes.
Read all positive updates
Company Guidance
The company guided third-quarter polysilicon production at approximately 40,000–45,000 metric tons and full‑year 2026 production at 160,000–180,000 metric tons (Q2 production was 43,675 mt, above prior guidance of 35,000–40,000, with nameplate utilization ~57%); sales volume rose sequentially to 15,190 mt from 4,482 mt with an ASP of $4.04/kg, total production cost of $5.95/kg and cash cost of $4.57/kg; market context includes N‑type spot prices down to RMB31–34/kg at end‑Q2 (quotations and some transactions exceeding ~RMB40/kg), an industry CPIA cost estimate of ~RMB50/kg (~RMB50,000/ton), industry H1 output of 538,000 mt (≈9.8% YoY change) and ~500k–600k mt of inventory, while forward/spot prices have rebounded >10% from recent lows; balance sheet liquidity is strong with zero debt and readily convertible assets of about $1.9 billion (cash ~$555M, short‑term investments $250M, notes receivable $71.7M, held‑to‑maturity $51M, fixed‑term deposits ≈$929M–$995M), and the company also plans to invest in AIDC power infrastructure (total project ~RMB6bn, first phase ~RMB2bn with prototypes by year‑end, initial sales in 2027 and ramp 2028–2030).Daqo New Energy Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 556.12M | 665.41M | 1.03B | 2.31B | 4.61B | 1.68B |
| Gross Profit | -197.11M | -137.85M | -212.93M | 920.65M | 3.41B | 1.10B |
| EBITDA | -20.71M | 3.01M | -179.88M | 967.36M | 3.12B | 1.13B |
| Net Income | -191.88M | -170.51M | -345.21M | 429.55M | 1.82B | 748.92M |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.45B | 6.42B | 7.43B | 7.59B | 3.34B |
| Cash, Cash Equivalents and Short-Term Investments | 1.79B | 2.07B | 2.10B | 3.04B | 3.51B | 1.00B |
| Total Debt | 0.00 | 0.00 | 6.82M | 0.00 | 20.69M | 0.00 |
| Total Liabilities | 478.01M | 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 | -261.52M | -123.34M | -794.65M | 429.20M | 1.22B | 130.73M |
| Operating Cash Flow | -114.64M | 56.12M | -435.64M | 1.62B | 2.47B | 638.99M |
| Investing Cash Flow | 42.83M | -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
Negative
13.52
Price Trends
13.14
Positive
16.03
Negative
21.60
Negative
Market Momentum
0.26
Positive
47.90
Neutral
39.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DQ, the sentiment is Negative. The current price of 13.52 is below the 20-day moving average (MA) of 13.96, above the 50-day MA of 13.14, and below the 200-day MA of 21.60, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 39.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Daqo New Energy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $49.09B | 17.71 | 20.98% | 2.12% | 9.07% | 104.71% | |
67 Neutral | $28.51B | 47.34 | 8.38% | ― | -3.14% | 44.55% | |
63 Neutral | $40.21B | 104.60 | 6.90% | 2.31% | 20.93% | ― | |
62 Neutral | $82.32B | 43.49 | 17.32% | 1.13% | 18.30% | 82.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $44.02B | 96.57 | 2.66% | 0.70% | 10.06% | -27.68% | |
50 Neutral | $914.85M | -4.82 | -4.38% | ― | -6.25% | 51.32% |
* Technology Sector Average
DQ
Daqo New Energy
13.64
-9.20
-40.28%
ASX
ASE Technology Holding Co
38.90
29.00
293.09%
MCHP
Microchip
75.49
11.91
18.72%
ON
ON Semiconductor
74.80
24.02
47.30%
STM
STMicroelectronics
51.34
24.00
87.76%
UMC
United Micro
19.07
12.47
188.90%
Daqo New Energy Corporate Events
Daqo New Energy Narrows Losses but Faces Margin Pressure in Q2 2026
Aug 20, 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 com...
Daqo New Energy Schedules August 20 Release of Q2 2026 Results
Aug 6, 2026
On August 6, 2026, Daqo New Energy announced it will publish its unaudited financial results for the second quarter ended June 30, 2026, before U.S. markets open on August 20, 2026. The company said it will also host a conference call that day at ...
Daqo New Energy to Invest Up to RMB 6 Billion in AI Data Center Energy Solutions Base
Jun 3, 2026
On June 3, 2026, Daqo New Energy said its subsidiary Daqo Shanghai signed an investment agreement with the Kunshan Economic and Technological Development Zone to build a new manufacturing base for next-generation energy solutions for AI data cente...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.