Daqo New Energy Corp. (DQ) AI Stock Analysis

Daqo New Energy Corp., along with its subsidiaries, specializes in the manufacturing and distribution of polysilicon, primarily catering to photovoltaic product manufacturers based in the People's Republic of China. Polysilicon serves as a crucial raw material in the production of ingots, wafers, cells, and modules essential for solar power solutions. Established in 2006 and headquartered in Shanghai, China, the company was originally named Mega Stand International Limited before rebranding in August 2009. Daqo New Energy Corp. focuses on delivering critical materials that enable the efficient conversion of solar energy into electricity.

Daqo New Energy experienced significant top-line expansion in FY2022, when revenue reached $4.61B with a gross margin of 74.0% and net income of $1.82B. Growth reversed over the following periods as FY2024 revenue fell 55.4% to $1.03B, posting a gross margin of -20.7% and net income of -$345.2M. In FY2025, revenue fell 35.3% to $665.4M, resulting in an operating margin of -40.6% and net income of -$170.5M. Over the trailing twelve months ending June 30, 2026, revenue stood at $555.7M with an operating margin of -156.5%. For the latest quarter, quarterly revenue fell 16.7% year-over-year while quarterly earnings declined 93.3%.

As of June 30, 2026, Daqo New Energy held $1.79B in cash and short-term investments, total assets of $6.34B, and shareholders' equity of $4.37B, supported by a current ratio of 5.81. In FY2025, operating cash flow was $56.1M, while free cash flow stood at -$123.3M alongside capital expenditures of $179.5M. Capital allocation in FY2025 included $852,248 in share buybacks, contributing to a 5-year share count reduction of 11.8%.

Daqo New Energy trades at a forward P/E of 21.4x, above the 18.8x median of its US-listed Technology peers. With an enterprise value of -$1.03B and a market cap of $692.2M, the company has an EV to EBITDA multiple of 6.7x, below the peer median of 16.6x. The stock trades at a price-to-sales multiple of 1.2x and a price-to-book ratio of 0.2x, compared to the peer median price-to-sales of 2.8x. Over the past year, the stock fell 62.6%, underperforming the S&P 500 return of 16.8%. Over five years, shares fell 84.0% compared to an 83.0% gain for the index.

Wall Street analysts hold 3 Strong Buy, 2 Buy, 1 Hold, 0 Sell, and 1 Strong Sell ratings on the stock. The mean price target is $19.64, representing a 92.0% premium over the October 16, 2026 closing price of $10.23. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$3.91 on revenue of $291.5M. For the following fiscal year, 2 analysts expect revenue to rise 140.9% to $702.3M with an EPS of -$2.61. Daqo beat earnings estimates in 1 of the last 4 quarters, and its next earnings date is October 27, 2026.

This page is an AI-written research summary of Daqo New Energy Corp. (DQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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