Daqo New Energy (MEX:DQ N) Beneish M-Score : -4.08 (As of Mar. 24, 2025)

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What is Daqo New Energy Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -4.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Daqo New Energy's Beneish M-Score or its related term are showing as below:

MEX:DQ N' s Beneish M-Score Range Over the Past 10 Years
Min: -4.08 Med: -3.08 Max: 478.75
Current: -4.08

During the past 13 years, the highest Beneish M-Score of Daqo New Energy was 478.75. The lowest was -4.08. And the median was -3.08.

Daqo New Energy Beneish M-Score Historical Data

The historical data trend for Daqo New Energy's Beneish M-Score 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.

* Premium members only.

Daqo New Energy Beneish M-Score Chart

Daqo New Energy Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.87

478.75

-1.49

-3.51

-4.08

Daqo New Energy Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-3.51	-2.12	4.42	-10.03	-4.08

Competitive Comparison of Daqo New Energy's Beneish M-Score

For the Semiconductor Equipment & Materials subindustry, Daqo New Energy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Daqo New Energy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Daqo New Energy's Beneish M-Score falls into.

Daqo New Energy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Daqo New Energy for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2397

0.528 * -1.7845

0.404 * 1.486

0.892 * 0.4698

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5384

4.679 * 0.034028

0.327 * 0.7211

-3.85

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN1,151 Mil.
Revenue was 4074.349 + 3908.446 + 4028.847 + 6892.607 = MXN18,904 Mil.
Gross Profit was -1361.106 + -1193.114 + -2915.828 + 1196.341 = MXN-4,274 Mil.
Total Current Assets was MXN54,883 Mil.
Total Assets was MXN133,857 Mil.
Property, Plant and Equipment(Net PPE) was MXN72,978 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN0 Mil.
Selling, General, & Admin. Expense(SGA) was MXN2,681 Mil.
Total Current Liabilities was MXN10,871 Mil.
Long-Term Debt & Capital Lease Obligation was MXN0 Mil.
Net Income was -3757.822 + -1195.674 + -2194.382 + 256.794 = MXN-6,891 Mil.
Non Operating Income was -3585.804 + 147.697 + 105.212 + -4.464 = MXN-3,337 Mil.
Cash Flow from Operations was -1277.015 + -1926.656 + -2980.846 + -1924.037 = MXN-8,109 Mil.

Total Receivables was MXN1,976 Mil.
Revenue was 8084.8 + 8445.361 + 10915.933 + 12794.758 = MXN40,241 Mil.
Gross Profit was 1480.087 + 1181.245 + 4438.693 + 9133.844 = MXN16,234 Mil.
Total Current Assets was MXN60,710 Mil.
Total Assets was MXN126,065 Mil.
Property, Plant and Equipment(Net PPE) was MXN61,556 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN0 Mil.
Selling, General, & Admin. Expense(SGA) was MXN3,710 Mil.
Total Current Liabilities was MXN14,198 Mil.
Long-Term Debt & Capital Lease Obligation was MXN0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1150.63 / 18904.249)	/	(1975.667 / 40240.852)
	=	0.060866	/	0.049096
	=	1.2397

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(16233.869 / 40240.852)	/	(-4273.707 / 18904.249)
	=	0.403418	/	-0.226071
	=	-1.7845

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (54882.755 + 72978.474) / 133856.95)	/	(1 - (60709.722 + 61555.803) / 126065.465)
	=	0.044792	/	0.030143
	=	1.486

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	18904.249	/	40240.852
	=	0.4698

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0 / (0 + 61555.803))	/	(0 / (0 + 72978.474))
	=	0	/	0
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(2681.379 / 18904.249)	/	(3710.208 / 40240.852)
	=	0.14184	/	0.0922
	=	1.5384

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 10870.762) / 133856.95)	/	((0 + 14197.753) / 126065.465)
	=	0.081212	/	0.112622
	=	0.7211

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-6891.084 - -3337.359	-	-8108.554)	/	133856.95
	=	0.034028

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Daqo New Energy has a M-score of -3.85 suggests that the company is unlikely to be a manipulator.

Daqo New Energy Beneish M-Score Related Terms

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Daqo New Energy Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Daqo New Energy Corp (MEX:DQ N) » Definitions » Beneish M-Score

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DQ:USA 0I74:UK 5DQ2:Germany

Address

No. 838 Zhangyang Road, Room C,29th Floor, Unit 29, Huadu Mansion, Pudong, Shanghai, CHN, 200122

Website

https://www.dqsolar.com

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.

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