NYSE:DQ, an undervalued stock with good fundamentals.

Discover DAQO NEW ENERGY CORP-ADR (NYSE:DQ)—an undervalued stock our stock screener has picked out. NYSE:DQ demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

What does the Valuation looks like for NYSE:DQ

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:DQ boasts a 8 out of 10:

• The Price/Earnings ratio is 4.96, 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.
• Compared to an average S&P500 Price/Earnings ratio of 26.48, DQ is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 6.98, the valuation of DQ can be described as very cheap.
• Based on the Price/Forward Earnings ratio, DQ is valued cheaply inside the industry as 98.11% of the companies are valued more expensively.
• DQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
• 100.00% of the companies in the same industry are more expensive than DQ, based on the Price/Free Cash Flow ratio.
• DQ has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as DQ's earnings are expected to grow with 17.66% in the coming years.

What does the Profitability looks like for NYSE:DQ

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DQ, the assigned 8 is a significant indicator of profitability:

• With a decent Return On Assets value of 5.66%, DQ is doing good in the industry, outperforming 60.38% of the companies in the same industry.
• The Return On Invested Capital of DQ (9.50%) is better than 70.75% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for DQ is significantly above the industry average of 11.68%.
• 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.
• The Profit Margin of DQ (18.24%) is better than 71.70% of its industry peers.
• In the last couple of years the Profit Margin of DQ has grown nicely.
• DQ has a better Operating Margin (33.94%) than 91.51% of its industry peers.
• DQ's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of DQ has grown nicely.

Evaluating Health: NYSE:DQ

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DQ has achieved a 7 out of 10:

• 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.
• DQ has a Current Ratio of 4.20. This indicates that DQ is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of DQ (4.20) is better than 69.81% of its industry peers.
• A Quick Ratio of 4.00 indicates that DQ has no problem at all paying its short term obligations.
• The Quick ratio of DQ (4.00) is better than 73.58% of its industry peers.

A Closer Look at Growth for NYSE:DQ

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:DQ scores a 6 out of 10:

• Measured over the past years, DQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.63% on average per year.
• The Revenue has been growing by 50.24% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, DQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.66% on average per year.
• Based on estimates for the next years, DQ will show a quite strong growth in Revenue. The Revenue will grow by 12.39% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of DQ contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.