Daqo New Energy Corp.
- Open
- 12.90
- Day high
- 13.38
- Day low
- 12.87
- Prev close
- 12.89
- Volume
- 194K
- Mkt cap
- $880M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.2
- P/S
- 1.6
- Yield
- —
- Per share
- —
Daqo New Energy Corp. (DQ) is a Technology company listed on NYSE. The stock is down 50% over the past year. Drillr has 1 published research article covering DQ.
Daqo New Energy Corp. (DQ) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DQ earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 20, 2026 | $-0.57 | $-1.20 | -110.5% | $63M | +18.4% |
| Apr 29, 2026 | $-0.13 | $-1.31 | -907.7% | $27M | -85.7% |
| Feb 26, 2026 | $-0.04 | $-0.11 | -175.0% | $222M | -19.9% |
| Aug 26, 2025 | $-1.16 | $-1.14 | +1.7% | $75M | -47.1% |
| Feb 27, 2025 | $-0.69 | $-2.71 | -292.8% | $195M | -5.7% |
| Oct 30, 2024 | $-0.80 | $-0.92 | -15.0% | $198M | +29.3% |
| Feb 28, 2024 | $0.84 | $0.64 | -23.8% | $477M | -9.9% |
| Aug 3, 2023 | $5.89 | $1.34 | -77.2% | $637M | -39.4% |
| Apr 27, 2023 | $4.95 | $3.52 | -28.9% | $710M | -45.0% |
| Feb 28, 2023 | $7.33 | $4.71 | -35.7% | $864M | -10.5% |
| Oct 27, 2022 | $7.03 | $4.18 | -40.5% | $1.2B | +1.1% |
| Aug 3, 2022 | $6.46 | $8.18 | +26.6% | $1.2B | -6.0% |
Daqo New Energy Corp. company profile
Overview
Daqo New Energy Corp. (NYSE:DQ) is a Chinese polysilicon manufacturer founded in 2006 and headquartered in Shanghai. The company went public on the New York Stock Exchange in October 2010, initially operating under the name Mega Stand International Limited before changing to its current name in 2009. Daqo has emerged as one of the leading producers of high-purity polysilicon, a critical raw material used in solar photovoltaic panels. The company operates manufacturing facilities in Xinjiang and Inner Mongolia, China, and has experienced significant growth over the past decade, though it currently faces challenging market conditions due to industry overcapacity.
Business
Daqo New Energy operates in the polysilicon manufacturing industry, which sits at the foundation of the solar photovoltaic supply chain. Polysilicon is a highly purified form of silicon that serves as the essential raw material for manufacturing solar cells and panels. The solar industry supply chain follows a sequential process: polysilicon is first processed into silicon ingots, which are then sliced into wafers, converted into solar cells, and finally assembled into solar modules that generate electricity from sunlight. The company's core product is high-purity polysilicon, specifically engineered for photovoltaic applications. Daqo produces both traditional P-type and advanced N-type polysilicon, with N-type representing a newer, more efficient technology that enables higher-performance solar panels. N-type polysilicon allows solar cells to achieve better energy conversion efficiency and reduced degradation over time compared to conventional P-type technology. As of 2024, approximately 70% of Daqo's production consists of N-type polysilicon, reflecting the industry's technological transition. The company operates with a single primary business segment focused entirely on polysilicon production and sales. All revenue is derived from selling polysilicon to downstream manufacturers who produce silicon ingots, wafers, cells, and modules. Daqo has also begun initial production of semiconductor-grade polysilicon, which requires even higher purity levels for use in electronic applications, though this remains a small portion of overall output. Daqo's manufacturing operations are concentrated in China, with facilities in Xinjiang and Inner Mongolia provinces. These locations were strategically chosen for their access to low-cost electricity, which is crucial since polysilicon production is highly energy-intensive. The company's total nameplate production capacity exceeds 200,000 metric tons annually, making it one of the world's largest polysilicon producers.
Revenue model
Daqo generates revenue through direct product sales of polysilicon to photovoltaic manufacturers, primarily operating on a business-to-business model. The company's customers are downstream manufacturers in the solar supply chain who purchase polysilicon to produce silicon ingots, wafers, solar cells, and complete solar modules. Pricing is typically negotiated based on market conditions, product specifications, and delivery terms, with the majority of sales conducted in Chinese yuan. The company's profitability is heavily influenced by the spread between polysilicon selling prices and production costs. Daqo's cash production cost is approximately $5.31 per kilogram, while total production costs including depreciation and overhead reach around $11.57 per kilogram. When market prices fall below these cost levels, as occurred in 2024, the company experiences significant losses. Several factors significantly impact Daqo's margins and profitability. Electricity costs represent the largest component of production expenses, as polysilicon manufacturing requires approximately 55 kilowatt-hours per kilogram produced. The company benefits from low electricity rates in Xinjiang and Inner Mongolia, giving it a competitive cost advantage. Industry capacity utilization heavily influences pricing, with the current oversupply situation driving prices below production costs for most manufacturers. Technology transitions also affect margins, as N-type polysilicon typically commands premium pricing over traditional P-type products. However, this premium has compressed during the current market downturn. Global solar demand growth ultimately drives polysilicon consumption, with China representing the largest market at 250-300 gigawatts of expected annual installations. Competition from alternative technologies such as fluidized bed reactor (FBR) production methods could potentially disrupt Daqo's modified Siemens process, though the company continues to research emerging technologies. Government policies regarding energy consumption limits, production quotas, or trade restrictions could significantly impact operations and market dynamics.
Competitive moat
Daqo's competitive moat is moderate but vulnerable to industry cyclicality and technological disruption. The company's primary advantages stem from its low-cost production capabilities and scale advantages as one of the world's largest polysilicon manufacturers. Its strategic location in regions with access to low-cost electricity provides a sustainable cost advantage, as energy represents the largest component of production costs. The company has developed technological expertise in high-purity N-type polysilicon production, which requires more sophisticated manufacturing processes than traditional P-type products. This technical capability, combined with its large-scale operations, creates some barriers to entry for smaller competitors. Daqo's strong balance sheet with over $790 million in cash provides financial resilience during industry downturns when competitors may face liquidity constraints. However, the company's moat faces significant challenges. The polysilicon industry is characterized by commodity-like pricing dynamics with limited product differentiation beyond purity specifications. The current industry overcapacity demonstrates how quickly supply-demand imbalances can erode profitability across all players. Technological disruption represents a longer-term threat, as alternative production methods like FBR could potentially offer lower costs or better environmental profiles. Chinese government policy creates both opportunities and risks, as regulatory changes regarding energy consumption, production quotas, or environmental standards could significantly impact competitive dynamics. The company also faces potential challenges from trade restrictions or delisting risks related to its U.S. stock exchange listing. The solar industry's rapid growth provides expansion opportunities, but the cyclical nature of commodity markets means that even low-cost producers like Daqo can face extended periods of losses during oversupply cycles. The company's moat is primarily defensive during downturns rather than providing sustained pricing power during favorable market conditions.
Risks & safety
Daqo maintains a strong financial position despite current operating losses, providing substantial margin of safety during the industry downturn. • Liquidity position: $792 million cash plus $168 million short-term investments totaling $960 million in readily available funds • Debt level: Zero financial debt, eliminating solvency risk from leverage • Current ratio: 5.62x indicating strong short-term liquidity coverage • Cash burn: Free cash flow of -$97 million in Q1 2025, manageable given cash reserves • Asset coverage: Graham net-net working capital of $2.1 billion provides substantial downside protection Valuation metrics: • Price-to-book ratio: 0.28x suggesting significant discount to asset value • Enterprise value: Trading below tangible book value despite substantial manufacturing assets • Cyclical considerations: Current losses reflect temporary industry conditions rather than permanent impairment Other considerations: Strong balance sheet provides flexibility to maintain operations through extended downturn, potential for significant earnings recovery when industry rebalances, and management's conservative approach to capital allocation during challenging periods.
Recent development
Over the past few years, Daqo has undertaken several strategic initiatives to strengthen its market position and navigate industry challenges. The company has significantly expanded its production capacity, completing the Inner Mongolia Phase 5A facility with 100,000 metric tons of annual capacity and beginning construction of Phase 5B. This expansion increased total nameplate capacity to over 200,000 metric tons annually, positioning Daqo among the world's largest polysilicon producers. A major strategic focus has been the transition to N-type polysilicon production. The company increased its N-type product mix from 40% in 2023 to 70% in 2024, with plans to achieve 100% N-type production capability. This technological shift addresses the solar industry's migration toward higher-efficiency N-type solar cells, which offer superior performance compared to traditional P-type technology. Daqo has also begun diversification into semiconductor-grade polysilicon, which requires even higher purity levels than solar-grade material and serves the electronics industry. While still in initial production phases, this represents a potential avenue for premium pricing and reduced dependence on solar market cycles. In response to the severe industry downturn beginning in 2024, management has implemented aggressive capacity utilization management, operating at only 33-50% of nameplate capacity to minimize cash burn. The company has focused on maintaining its most efficient production lines while temporarily idling higher-cost capacity. Technology and digitalization initiatives include implementing artificial intelligence and digital transformation programs to optimize production processes and reduce costs. The company continues researching emerging technologies like fluidized bed reactor (FBR) methods while maintaining its current modified Siemens process. Management has also maintained a strong capital allocation discipline, preserving cash during the downturn while completing a $700 million share repurchase program. The company has avoided major capital expenditures during the current cycle, focusing on operational efficiency improvements rather than capacity expansion.
DQ company profile · for informational purposes only — not investment advice.
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