Daqo New Energy Corp. (DQ) intrinsic value & 10-year financials
Daqo New Energy Corp. (DQ) has a Graham intrinsic value of $33.40 per share. Over the last 10 fiscal years revenue grew 12.6% a year to $665.4M, with an average return on invested capital of 32.7%.
- Graham intrinsic value
- $33.40
- Revenue (FY2025)
- $665.4M
- Revenue growth (10-yr CAGR)
- 12.6%
- ROIC (10-yr avg)
- 32.7%
- Free cash flow (FY2025)
- -$123.3M
DQ 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $665.4M | -$170.5M | -$0.51 | -$123.3M | -40.6% | -6.9% |
| FY2024 | $1.0B | -$345.2M | -$1.04 | -$794.3M | -54.8% | -18.5% |
| FY2023 | $2.3B | $429.5M | $1.15 | $505.3M | 33.9% | 37.1% |
| FY2022 | $4.6B | $1.8B | $4.67 | $1.3B | 66.0% | 166.9% |
| FY2021 | $1.7B | $748.9M | $1.95 | $140.5M | 62.6% | 74.3% |
| FY2020 | $675.6M | $129.2M | $0.34 | $91.4M | 27.8% | 19.5% |
| FY2019 | $350.0M | $29.5M | $0.08 | -$98.1M | 13.6% | 5.5% |
| FY2018 | $301.6M | $38.1M | $0.12 | -$47.5M | 27.0% | 11.7% |
| FY2017 | $352.9M | $92.8M | $0.34 | $74.9M | 36.5% | 24.4% |
| FY2016 | $229.1M | $43.5M | $0.16 | $31.2M | 28.6% | 13.4% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
DAQO NEW ENERGY CORP. is a consistent compounder, expanding top-line revenue at 12.6% annually over the past decade.
DAQO NEW ENERGY CORP. has earned high returns on invested capital, averaging 16.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
DAQO NEW ENERGY CORP. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, DAQO NEW ENERGY CORP. is modeled at 12.6% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $33.40 per share.