Numbers

The Numbers

Daqo trades where it does because the market is valuing a net-cash balance sheet through the lens of a product currently selling near or below full cost. The single metric most likely to rerate the stock is not revenue growth; it is whether polysilicon ASPs stay above total production cost long enough for sales volume to normalize.

What is this company economically?

Daqo is an upstream commodity producer whose 2022 earnings power was real, but whose current earnings are hostage to industry overcapacity.

Revenue fell 86% from the 2022 peak to FY2025, while operating income moved from $3.04B to a $270M loss.

The margin chart is the stock chart in accounting form: the business has low-cost assets, not price control.

Q1 2026 was not a normal weak quarter: revenue dropped to $26.7M after management stopped selling into below-cost market prices.

Is it healthy and durable?

The balance sheet is durable; the income statement is not.

This scorecard says Daqo is financially survivable, not currently high quality. The distinction matters because survivability creates option value only if the cycle normalizes before losses consume the buffer.

Trailing five-year FCF was about $986M against $3.33B of consolidated net income because expansion capex absorbed much of the boom cash.

Daqo's capital intensity is tolerable at boom spreads and punishing at trough spreads; capex must now stay low for the balance sheet thesis to work.

The company repurchased heavily in 2022 and 2023, then preserved cash through the downturn despite authorizing new buybacks.

Zero debt is not a slogan here; the financial risk is asset impairment and cash burn, not refinancing.

What does the market think?

The market is pricing Daqo below cash and far below book because current earnings do not validate the asset base.

The current 0.29x P/B is below the 2019-2025 median of about 0.63x, but book value is only cheap if the factories can earn through-cycle returns.

The public solar peer table is less useful than it looks because Daqo's cycle is upstream polysilicon, not modules, inverters, or project development.

The numbers confirm Daqo has a rare balance sheet for a commodity trough, contradict the idea that low cost alone protects profitability, and make Q2-Q3 ASP versus total cost the next decisive readout.