DAQO NEW ENERGY CORP-ADR (DQ)
US23703Q2030 - ADR
We assign a fundamental rating of 7 out of 10 to DQ. DQ was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. DQ gets an excellent profitability rating and is at the same time showing great financial health properties. DQ scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make DQ a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
DQ had positive earnings in the past year.
In the past year DQ had a positive cash flow from operations.
Each year in the past 5 years DQ has been profitable.
In the past 5 years DQ always reported a positive cash flow from operatings.
1.2 Ratios
DQ has a better Return On Assets (5.66%) than 61.32% of its industry peers.
DQ has a Return On Equity of 8.86%. This is in the better half of the industry: DQ outperforms 60.38% of its industry peers.
DQ has a better Return On Invested Capital (9.50%) than 72.64% of its industry peers.
DQ had an Average Return On Invested Capital over the past 3 years of 24.97%. This is significantly above the industry average of 11.07%.
The last Return On Invested Capital (9.50%) for DQ is well below the 3 year average (24.97%), which needs to be investigated, but indicates that DQ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 8.86% | ||
| ROIC | 9.5% |
ROA(3y)17.34%
ROA(5y)12.98%
ROE(3y)27.12%
ROE(5y)20.68%
ROIC(3y)24.97%
ROIC(5y)18.74%
1.3 Margins
The Profit Margin of DQ (18.24%) is better than 71.70% of its industry peers.
DQ's Profit Margin has improved in the last couple of years.
The Operating Margin of DQ (33.94%) is better than 91.51% of its industry peers.
DQ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 39.88%, DQ is not doing good in the industry: 61.32% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.94% | ||
| PM (TTM) | 18.24% | ||
| GM | 39.88% |
OM growth 3Y6.86%
OM growth 5Y4.74%
PM growth 3Y-1.56%
PM growth 5Y7.63%
GM growth 3Y4.81%
GM growth 5Y4.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DQ is creating value.
The number of shares outstanding for DQ remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DQ has more shares outstanding
There is no outstanding debt for DQ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
There is no outstanding debt for DQ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.93
WACC10.26%
2.3 Liquidity
A Current Ratio of 4.20 indicates that DQ has no problem at all paying its short term obligations.
DQ's Current ratio of 4.20 is fine compared to the rest of the industry. DQ outperforms 69.81% of its industry peers.
DQ has a Quick Ratio of 4.00. This indicates that DQ is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 4.00, DQ is doing good in the industry, outperforming 73.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
DQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -76.43%.
The Earnings Per Share has been growing by 37.63% on average over the past years. This is a very strong growth
The Revenue for DQ has decreased by -49.91% in the past year. This is quite bad
Measured over the past years, DQ shows a very strong growth in Revenue. The Revenue has been growing by 50.24% on average per year.
EPS 1Y (TTM)-76.43%
EPS 3Y45.57%
EPS 5Y37.63%
EPS growth Q2Q-86.41%
Revenue 1Y (TTM)-49.91%
Revenue growth 3Y50.62%
Revenue growth 5Y50.24%
Revenue growth Q2Q-44.8%
3.2 Future
The Earnings Per Share is expected to grow by 9.93% on average over the next years. This is quite good.
DQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.04% yearly.
EPS Next Y-23%
EPS Next 2Y14.9%
EPS Next 3Y9.93%
EPS Next 5YN/A
Revenue Next Year5.56%
Revenue Next 2Y13.27%
Revenue Next 3Y11.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.06, which indicates a rather cheap valuation of DQ.
Based on the Price/Earnings ratio, DQ is valued cheaply inside the industry as 97.17% of the companies are valued more expensively.
DQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 5.27, which indicates a rather cheap valuation of DQ.
Based on the Price/Forward Earnings ratio, DQ is valued cheaper than 98.11% of the companies in the same industry.
DQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.06 | ||
| Fwd PE | 5.27 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.94 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
DQ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y14.9%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
DQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAQO NEW ENERGY CORP-ADR
NYSE:DQ (4/23/2024, 7:04:00 PM)
Premarket: 23.27 +0.26 (+1.13%)23.01
+0.72 (+3.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.06 | ||
| Fwd PE | 5.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 8.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.94% | ||
| PM (TTM) | 18.24% | ||
| GM | 39.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-76.43%
EPS 3Y45.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-49.91%
Revenue growth 3Y50.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y