Daqo New EnergySTU:5DQ2 75 ROA % is -5.56% as of Mar. 2026. GuruFocus rates STU:5DQ2 with a GF Score™ of 75/100 and a GF Value™ of €8.04 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,025 Semiconductors companies, Daqo New Energy ranks worse than 72.1% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Daqo New Energy's annualizedNet Income for the quarter that ended in Mar. 2026 was €-305.8 Mil.
Daqo New Energy's average Total Assets over the quarter that ended in Mar. 2026 was €5,495.6 Mil. Therefore, Daqo New Energy's annualized ROA % for the quarter that ended in Mar. 2026 was -5.56%.
The historical rank and industry rank for Daqo New Energy's ROA % or its related term are showing as below:
STU:5DQ2'
s ROA % Range Over the Past 10 Years
Min: -4.99 Med: 6.16 Max: 33.28
Current: -2.95
During the past 13 years, Daqo New Energy's highest ROA % was 33.28%. The lowest was -4.99%. And the median was 6.16%.
STU:5DQ2's ROA % is ranked worse than 72.1% of 1025
companies
in the Semiconductors industry
Industry Median: 2.47
vs STU:5DQ2: -2.95
Daqo New Energy (STU:5DQ2) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Daqo New Energy ROA % Related Terms
Daqo New Energy ROA % Historical Data
* Premium members only.
The historical data trend for Daqo New Energy's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Daqo New Energy's ROA % distribution charts can be found below:
* The bar in red indicates where Daqo New Energy's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Daqo New Energy (STU:5DQ2) has a ROA % of -5.56% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Daqo New Energy and its competitors. According to the industry distribution chart, Daqo New Energy ranks #739 out of 1025 companies in the Semiconductors industry, placing it in the top 72.1%.
Is Daqo New Energy's ROA % too high?
Daqo New Energy's current ROA % is -5.56%. Based on the distribution chart, Daqo New Energy ranks #739 out of 1025 companies in the Semiconductors industry, which is below the industry midpoint. 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 ROA % compare to ASYS and ATOM?
According to the Semiconductors industry distribution chart, Daqo New Energy ranks #739 out of 1025 companies for ROA %. This places Daqo New Energy in the lower half of its industry. The industry median ROA % is 2.47. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.47, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Daqo New Energy and its competitors. For the Semiconductors industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daqo New Energy's current ROA % is -5.56%. 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 €8.04, compared to a current price of €10.70 — trading 33.1% above its estimated fair value. The current ROA % is -5.56%. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Daqo New Energy (STU:5DQ2), the current ROA % is -5.56% 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 €10.70 is trading 33.1% above its estimated GF Value™ of €8.04.
GuruFocus considers Daqo New Energy to be Significantly Overvalued.
Key valuation signals for STU:5DQ2:
ROA %: -5.56%
GF Value™: €8.04 vs. price of €10.70 (33.1% 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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