DAQO New Energy Corp. (DQ) vs TOYO Co., Ltd. (TOYO)

DAQO New Energy Corp. and TOYO Co., Ltd. are both Solar companies. DAQO New Energy Corp. is the larger, with a market value of $774.8M against $188.0M — 4.1× the size. DAQO New Energy Corp. has negative trailing earnings, so its P/E is not meaningful; TOYO Co., Ltd. trades at 3.8×. TOYO Co., Ltd. has the higher net margin (0.00% vs −34.5%) and the higher return on invested capital (0.00% vs −4.45%). Across the 13 metrics below, TOYO Co., Ltd. leads on 9 and DAQO New Energy Corp. on 4.

Valuation

Metric DQ TOYO Solar median
P/E n/m 3.85 10.93
P/S 0.28 n/m 0.54
P/B 0.03 0.81 1.44
Price to free cash flow n/m 2.13 9.91
EV/EBITDA 4.89 2.09 9.90
EV/Sales (2.55) n/m 0.74
Earnings yield (24.76%) 26.00% 0.00%
Free cash flow yield (174.96%) 47.04% 0.00%

Profitability

Metric DQ TOYO Solar median
Gross margin (35.45%) — 31.92%
Operating margin (52.20%) — (9.70%)
Net margin (34.50%) 0.00% (8.48%)
Free cash flow margin (47.06%) 0.00% (2.95%)
Return on equity 0.00% 31.92% 5.34%
Return on assets (3.04%) 15.99% (5.36%)
Return on invested capital (4.45%) 0.00% (5.27%)

Growth

Metric DQ TOYO Solar median
Revenue growth (TTM) (6.28%) — 16.97%
EPS growth (last fiscal year) 51.53% (10.09%) —
Revenue growth, 5-year CAGR (0.30%) — 14.00%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric DQ TOYO Solar median
Debt to equity 0.00 0.28 0.09
Current ratio 5.81 1.12 1.33
Net debt to EBITDA 68.42 0.19 0.03

Dividend

Metric DQ TOYO Solar median
Dividend yield 1.15% — —
Payout ratio 0.00 0.00 0.00

Size

Metric DQ TOYO Solar median
Market cap 774.82m 187.97m 43.46m

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