DAQO New Energy Corp. American Depositary Shares each representing five ordinary shares (DQ)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business, not the quote. Daqo sells polysilicon to solar manufacturers, a commodity product with little pricing power when supply is long. In the latest reported quarter, fiscal Q2 2026, revenue was $62.7 million and net income was -$81.2 million, a net margin of -129.52%. That is not a small blemish; trailing twelve-month free cash flow was -$405.2 million, and the FairStock FCF yield is -26.7% against a $1.5 billion market cap. The balance sheet looks cheap on paper: at the close on 2026-10-13, price was $11.09 and P/B was 0.17, so the market values the equity at a small fraction of book. But low P/B with negative ROE of -4.43% and ROCE of -2.85% often signals assets that are not earning their keep. The Piotroski F-Score of 4/9 and Altman Z-Score of 2.27 point to a fragile financial position. Growth is shrinking, and the 52-week range of $10.60 to $36.59 shows how violently sentiment has swung. A moat is absent; polysilicon is cyclical, capital-intensive, and driven by Chinese solar supply dynamics. Beta is 0.67, but low beta does not protect against commodity losses. Until cash flow turns positive and margins improve, a cheap multiple is not a margin of safety; it may be a warning. I would watch polysilicon prices, cash burn, and whether book value is real.

In plain English: Daqo New Energy makes polysilicon, a key material for solar panels. The business looks weak right now because it is losing money, sales are falling, and it is burning cash. The share price is very low compared with the value of its assets on the books, but that discount may reflect real troubles rather than a simple bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer