Daqo New EnergySTU:5DQ2 -1.87%75 Interest Coverage is No Debt (1) as of Mar. 2026, which is 100% below its 10-year median of 29.69. GuruFocus rates STU:5DQ2 with a GF Score™ of 75/100 and a GF Value™ of €7.99 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 635 Semiconductors companies, Daqo New Energy ranks better than 99.53% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Daqo New Energy's
Operating Income
for the
three
months ended in Mar. 2026 was €-130.5 Mil. Daqo New Energy's Interest Expense for the
three
months ended in Mar. 2026 was €0.0 Mil.
Daqo New Energy has no debt.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Daqo New Energy Corp has enough cash to cover all of its debt. Its financial situation is stable.
(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
The historical rank and industry rank for Daqo New Energy's Interest Coverage or its related term are showing as below:
STU:5DQ2'
s Interest Coverage Range Over the Past 10 Years
Min: 4.81 Med: 29.69 Max: No Debt
Current: No Debt
STU:5DQ2's Interest Coverage is ranked better than 99.53% of 635
companies
in the Semiconductors industry
Industry Median: 20.32
vs STU:5DQ2: No Debt
Daqo New Energy (STU:5DQ2) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Daqo New Energy Interest Coverage Related Terms
Daqo New Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Daqo New Energy's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:5DQ2 vs ASYS, ATOM, INTT: Interest Coverage Comparison
For the Semiconductor Equipment & Materials subindustry, Daqo New Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Daqo New Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Daqo New Energy's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
Daqo New Energy (STU:5DQ2) has a Interest Coverage of No Debt (1) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daqo New Energy and its competitors. This is 97% below median its historical median of 29.69. Over the past decade, Daqo New Energy's Interest Coverage has ranged from 4.81 to 10,000.00. According to the industry distribution chart, Daqo New Energy ranks #3 out of 635 companies in the Semiconductors industry, placing it in the top 0.5%.
Is Daqo New Energy's Interest Coverage too high?
Daqo New Energy's current Interest Coverage of No Debt (1) is 97% below median its 10-year median of 29.69. Over the past 10 years, this metric has ranged from a low of 4.81 to a high of 10,000.00. Based on the distribution chart, Daqo New Energy ranks #3 out of 635 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 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daqo New Energy's Interest Coverage compare to ASYS and ATOM?
According to the Semiconductors industry distribution chart, Daqo New Energy ranks #3 out of 635 companies for Interest Coverage. This places Daqo New Energy in the top 1% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 20.32. Historically, Daqo New Energy's own Interest Coverage has ranged from 4.81 to 10,000.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.32, based on 635 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daqo New Energy and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daqo New Energy's current Interest Coverage is No Debt (1), which is 97% below median its own 10-year median of 29.69. 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 (STU:5DQ2) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.99, compared to a current price of €10.50 — trading 31.4% above its estimated fair value. The current Interest Coverage is No Debt (1), which is 97% below median its 10-year median of 29.69. Daqo New Energy's overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Daqo New Energy (STU:5DQ2), the current Interest Coverage is No Debt (1) 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 (STU:5DQ2) Overvalued in 2026?
Based on GuruFocus' analysis, Daqo New Energy stock appears to be overvalued.
The current stock price of €10.50 is trading 31.4% above its estimated GF Value™ of €7.99.
GuruFocus considers Daqo New Energy to be Significantly Overvalued.
Key valuation signals for STU:5DQ2:
Interest Coverage: No Debt (1) (97% below median its 10-year median of 29.69)
GF Value™: €7.99 vs. price of €10.50 (31.4% above fair value)
No single metric tells the full story. See the STU:5DQ2 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.
75GF Score
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