Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: N/A
• Average Volume (3M): 477.13K
• Price to Earnings (P/E): 100.1
• Beta (1Y): 1.66
• Revenue Growth: -10.37%
• EPS Growth: -85.11%
• Country: US
• Employees: 7,829
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.19
• Shares Outstanding: 46,401,360
• 10 Day Avg. Volume: 356,636
• 30 Day Avg. Volume: 477,134
• PEG Ratio: 0.24
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.09
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 7.61
• Enterprise Value/Ebitda: 4.08
• 1Y Price Target: $56.00
• Price Target Upside: 1.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $58.00 ▲(5.21%Upside)

The overall score reflects a mix of strengths in technical momentum and strategic initiatives, countered by overvaluation and profitability challenges. The strong balance sheet and cash flow provide stability, but high P/E ratio and recent financial underperformance weigh on the score.

Positive Factors

Leadership Strategy

The company's strategic pivot under new leadership is focused on driving growth and significant gross margin expansion back toward the 40%+ range.

Market Demand

Demand for datacenter and AI server remains strong, driven by ongoing cloud and hyperscaler investment, particularly in Asia.

Sales Strategy

The transition to a system solutions provider is enabling a 'land and expand' approach, securing design wins with high-performance products and increasing content and share with key customers.

Negative Factors

Margin Pressure

Gross margin is pressured on slower Auto and Industrial recovery, utilization, and product mix.

Sector Recovery

Gross margin is currently pressured by slower recovery in the Auto and Industrial sectors, alongside utilization and product mix challenges.

Diodes Business Overview & Revenue Model

Company Description

Diodes Incorporated (DIOD) is a leading global manufacturer and supplier of high-quality application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. The company serves diverse end-user markets, including the communications, computing, consumer electronics, automotive, and industrial sectors. Diodes offers a broad range of semiconductor products, including diodes, rectifiers, transistors, MOSFETs, protection devices, amplifiers, comparators, Hall-effect and temperature sensors, power management devices, AC-DC converters, DC-DC switching, linear voltage regulators, and voltage references, as well as special-function devices such as USB power switches, load switches, voltage supervisors, and motor controllers.

How the Company Makes Money

Diodes Incorporated generates its revenue primarily through the design, manufacturing, and sale of semiconductors. The company's products are sold to a wide range of customers in the communications, computing, consumer electronics, automotive, and industrial markets, providing a diversified and stable revenue base. Diodes' revenue model is based on a combination of direct sales and distribution channels, allowing it to effectively reach a global customer base. Key revenue streams include sales of discrete semiconductors, analog and mixed-signal products, and high-performance logic products. The company's significant partnerships with original equipment manufacturers (OEMs) and distributors contribute to its earnings by ensuring a steady demand for its innovative and reliable semiconductor solutions. Diodes also invests in research and development to maintain a competitive edge in technology and product innovation, which supports its ongoing revenue growth.

Diodes Financial Statement Overview

Summary

Diodes shows a mixed financial performance. The income statement indicates pressure on profitability and declining revenue, posing challenges. However, the balance sheet is strong with low debt and high equity, providing financial stability. Cash flow generation is robust, with notable growth in free cash flow, although profitability remains a concern.

Income Statement

The company's TTM (Trailing-Twelve-Months) Gross Profit Margin is approximately 32.6%, indicating a strong ability to manage production costs. However, the Net Profit Margin stands at about 1.9%, reflecting challenges in converting revenue to profit. Revenue has decreased from $2 billion in 2022 to $1.34 billion in the latest TTM, showing a negative growth trend and signaling potential market share or demand issues. EBIT and EBITDA margins are under pressure but remain positive.

Balance Sheet

Diodes maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.03, reflecting low financial leverage. The Equity Ratio is strong at 76.4%, indicating a robust capital structure with significant equity financing. Return on Equity (ROE) is modest at 1.4% for the TTM, suggesting that profitability on shareholders' equity is low. Overall, the balance sheet strength is underscored by low debt and high equity, though profitability could improve.

Cash Flow

Free Cash Flow has grown significantly from $46.4 million in 2024 to $138.8 million in the TTM, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is high at 8.1, showing robust cash flow relative to net income. However, the Free Cash Flow to Net Income Ratio is lower at 5.4, pointing to some inefficiencies in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.31B	1.66B	2.00B	1.81B	1.23B
Gross Profit	437.12M	435.86M	658.18M	827.24M	670.36M	431.12M
EBITDA	179.80M	202.15M	420.96M	532.02M	444.47M	239.56M
Net Income	25.55M	44.02M	227.18M	331.28M	228.76M	98.09M
Balance Sheet
Total Assets	2.36B	2.39B	2.37B	2.29B	2.19B	1.98B
Cash, Cash Equivalents and Short-Term Investments	343.93M	316.13M	325.63M	343.79M	370.14M	274.21M
Total Debt	51.56M	91.70M	98.36M	213.67M	301.02M	450.60M
Total Liabilities	484.51M	517.33M	557.98M	705.39M	891.77M	963.33M
Stockholders Equity	1.80B	1.80B	1.74B	1.51B	1.24B	963.82M
Cash Flow
Free Cash Flow	138.78M	46.41M	130.15M	180.77M	197.35M	111.41M
Operating Cash Flow	207.32M	119.44M	280.91M	392.50M	338.54M	187.22M
Investing Cash Flow	-128.39M	-118.04M	-158.32M	-265.26M	-144.23M	-106.77M
Financing Cash Flow	-23.67M	-19.34M	-144.72M	-125.71M	-158.44M	-54.30M

Diodes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIOD, the sentiment is Positive. The current price of 55.13 is above the 20-day moving average (MA) of 54.32, above the 50-day MA of 49.73, and above the 200-day MA of 53.82, indicating a bullish trend. The MACD of 2.02 indicates Positive momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 33.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIOD.

Diodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYNA	76 Outperform	$2.54B	15.99	12.60%	―	10.60%	―
FORM	74 Outperform	$2.69B	50.73	5.74%	―	15.33%	-47.04%
SIMO	70 Outperform	$2.40B	25.48	12.33%	2.80%	10.78%	58.82%
DIOD	69 Neutral	$2.56B	100.13	1.44%	―	-10.37%	-85.11%
KLIC	64 Neutral	$1.86B	97.26	2.29%	2.33%	-6.17%	―
Sector *	63 Neutral	$34.16B	5.47	-11.67%	1.85%	5.30%	-18.30%
VSH	55 Neutral	$2.37B	26.74	-3.14%	2.35%	-11.31%	-127.88%

Diodes Corporate Events

Diodes Appoints Gary Yu as New CEO

On May 13, 2025, Diodes Incorporated appointed Gary Yu as the new Chief Executive Officer, succeeding Dr. Keh-Shew Lu, who will remain as Chairman of the Board and a special advisor. Mr. Yu, who has been with the company since 2008, brings extensive experience to his new role, having previously served in various leadership positions within the company. This leadership change is part of Diodes’ long-term succession plan and is expected to drive the company’s growth and profitability. Additionally, the company held its annual meeting on May 12, 2025, where stockholders elected seven directors, approved executive compensation, and ratified the appointment of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (DIOD) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Diodes Announces $100 Million Stock Repurchase Program

On May 8, 2025, Diodes Incorporated reported a 10% year-over-year revenue growth for the first quarter, driven by strong performance in the computing market in Asia and improving conditions in Europe and North America. The company’s automotive and industrial markets contributed 42% of the product revenue, and a $100 million stock repurchase program was announced, highlighting confidence in future growth. Despite a net loss of $4.4 million for the quarter, Diodes is strategically positioned with a hybrid manufacturing model to meet global demand, and anticipates further growth in the coming quarters.

The most recent analyst rating on (DIOD) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Diodes stock, see the DIOD Stock Forecast page.

Diodes Reports Q1 2025 Revenue Growth Amid Net Loss

Diodes Incorporated reported its financial results for the first quarter of 2025, showing a 10% year-over-year revenue growth to $332.1 million, driven by strong performance in the computing market in Asia and improving conditions in Europe and North America. Despite achieving revenue growth, the company experienced a GAAP net loss of $4.4 million due to factors such as reduced channel inventory and the impact of the Chinese New Year holiday on manufacturing operations. However, Diodes anticipates continued growth, particularly in the automotive and industrial markets, and expects to see margin improvements as inventory levels normalize and global demand increases.

Diodes Schedules Q1 Financial Results Conference Call

On April 17, 2025, Diodes Incorporated announced that it will host a conference call on May 8, 2025, to discuss its first quarter financial results. The call will feature key executives, including the President, CFO, and Senior VP of Worldwide Sales and Marketing. This announcement is significant for analysts and investors as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.