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Daqo New EnergyDQ -1.88%66 Cash Ratio is 4.50 as of Mar. 2026, which is 470% above its 10-year median of 0.79. GuruFocus rates DQ with a GF Score™ of 66/100 and a GF Value™ of $9.92 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,023 Semiconductors companies, Daqo New Energy ranks better than 88.66% on this metric.
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Daqo New Energy Cash Ratio Related Terms
Daqo New Energy Cash Ratio Historical Data
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The historical data trend for Daqo New Energy's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductor Equipment & Materials subindustry, Daqo New Energy's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Daqo New Energy Cash Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Daqo New Energy's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Daqo New Energy's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Daqo New Energy (DQ) has a Cash Ratio of 4.50 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Daqo New Energy and its competitors. This is 470% above median its historical median of 0.79. Over the past decade, Daqo New Energy's Cash Ratio has ranged from 0.06 to 4.77. According to the industry distribution chart, Daqo New Energy ranks #116 out of 1023 companies in the Semiconductors industry, placing it in the top 11.3%.
Is Daqo New Energy's Cash Ratio too high?
Daqo New Energy's current Cash Ratio of 4.50 is 470% above median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 4.77. The Semiconductors industry median Cash Ratio is 1.02. Daqo New Energy's value of 4.50 is 341.2% above this industry median. Based on the distribution chart, Daqo New Energy ranks #116 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Daqo New Energy has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daqo New Energy's Cash Ratio compare to ASYS and ATOM?
According to the Semiconductors industry distribution chart, Daqo New Energy ranks #116 out of 1023 companies for Cash Ratio. This places Daqo New Energy in the top 11% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 1.02. Daqo New Energy's value of 4.50 is 341.2% above this benchmark. Historically, Daqo New Energy's own Cash Ratio has ranged from 0.06 to 4.77 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 1.02, Daqo New Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Semiconductors company?
The median Cash Ratio among Semiconductors companies is 1.02, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daqo New Energy's current Cash Ratio of 4.50 is 341.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Daqo New Energy and its competitors. For the Semiconductors industry, the median Cash Ratio is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daqo New Energy's current Cash Ratio is 4.50, which is 470% above median its own 10-year median of 0.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daqo New Energy stock overvalued right now?
Based on GuruFocus' analysis, Daqo New Energy (DQ) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.92, compared to a current price of $14.64 — trading 47.6% above its estimated fair value. The current Cash Ratio is 4.50, which is 470% above median its 10-year median of 0.79 and 341.2% above the Semiconductors industry median of 1.02. Daqo New Energy's overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Daqo New Energy (DQ), the current Cash Ratio is 4.50 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Daqo New Energy (DQ) Overvalued in 2026?
Based on GuruFocus' analysis, Daqo New Energy stock appears to be overvalued.
The current stock price of $14.64 is trading 47.6% above its estimated GF Value™ of $9.92.
GuruFocus considers Daqo New Energy to be Significantly Overvalued.
Key valuation signals for DQ:
Cash Ratio: 4.50 (470% above median its 10-year median of 0.79)
GF Value™: $9.92 vs. price of $14.64 (47.6% above fair value)
Industry Position: 341.2% above the Semiconductors median (#116 of 1023)
No single metric tells the full story. See the DQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daqo New Energy Corp is a polysilicon manufacturer based in China. The company manufactures and sells high-purity polysilicon to manufacturers who use it to make ingots, cells, and modules for solar power solutions. The polysilicon is packaged to meet crucible stacking, pulling, and solidification needs. All of the company's revenues come from the People's Republic of China.
66GF Score
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