Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.52B
• Dividend Yield: N/A
• Average Volume (3M): 469.64K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 1.61
• Revenue Growth: 2.86%
• EPS Growth: -34.32%
• Country: US
• Employees: 7,829
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.32
• Shares Outstanding: 46,442,734
• 10 Day Avg. Volume: 397,084
• 30 Day Avg. Volume: 469,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: 10.19
• 1Y Price Target: $58.67
• Price Target Upside: 3.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $61.00 ▲(7.87% Upside)

Diodes Incorporated demonstrates strong financial performance and positive earnings call sentiment, driven by revenue growth and demand in key markets. Technical indicators suggest a positive trend, although the valuation appears high. The absence of a dividend yield and gross margin challenges are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Product Expansion

Expanding product lines, especially in automotive, strengthens market position and supports sustained growth in key sectors.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Gross Margin Challenges

Declining gross margins can pressure profitability, requiring improved operational efficiency to maintain financial health.

Underloading Costs

Underloading costs hinder margin expansion, necessitating better inventory management to optimize production efficiency.

Inventory Digestion in Automotive

Ongoing inventory issues in automotive can delay revenue realization, impacting short-term sales and operational planning.

Diodes Business Overview & Revenue Model

Company Description

Diodes Incorporated designs, manufactures, and supplies application-specific standard products in the discrete, logic, analog, and mixed-signal semiconductor markets worldwide. It focuses on low pin count semiconductor devices with one or more active or passive components. The company offers discrete semiconductor products, such as MOSFET, TVS, and performance Schottky rectifiers; GPP bridges and retifiers, and performance Schottky diodes; Zener and performance Zener diodes, including tight tolerance and low operating current type; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and prebiased transistors; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products, such as power management devices comprising AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. The company offers mixed-signal products, such as high speed mux/demux products, digital switches, interfaces, redrivers, universal level shifters/voltage translator, clock ICs, and packet switches; standard logic products comprising low-voltage complementary metal–oxide–semiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.

How the Company Makes Money

Diodes generates revenue primarily through the sale of its semiconductor products to original equipment manufacturers (OEMs) and distributors. The company's revenue model is based on the volume of components sold, with key revenue streams coming from the automotive sector, consumer electronics, and industrial applications. Diodes also engages in strategic partnerships with key players in the electronics industry to enhance its market reach and product offerings. Additionally, the company invests in research and development to innovate and expand its product lines, which contributes to sustained earnings through the introduction of new technologies that meet evolving customer demands.

Diodes Financial Statement Overview

Summary

Diodes presents a mixed financial picture. The income statement reflects pressure on profitability and revenue decline, 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. Despite profitability concerns, the company's financial health is supported by its solid balance sheet and cash flow performance.

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	1.39B	1.31B	1.66B	2.00B	1.81B	1.23B
Gross Profit	448.91M	435.86M	658.18M	827.24M	670.36M	431.12M
EBITDA	223.75M	202.15M	420.96M	532.02M	444.47M	239.56M
Net Income	63.65M	44.02M	227.18M	331.28M	228.76M	98.09M
Balance Sheet
Total Assets	2.47B	2.39B	2.37B	2.29B	2.19B	1.98B
Cash, Cash Equivalents and Short-Term Investments	327.33M	316.13M	325.63M	343.79M	370.14M	274.21M
Total Debt	99.63M	91.70M	98.36M	213.67M	334.55M	488.48M
Total Liabilities	537.38M	517.33M	557.98M	705.39M	891.77M	963.33M
Stockholders Equity	1.88B	1.80B	1.74B	1.51B	1.24B	963.82M
Cash Flow
Free Cash Flow	163.41M	46.41M	130.15M	180.77M	197.35M	111.41M
Operating Cash Flow	234.44M	119.44M	280.91M	392.50M	338.54M	187.22M
Investing Cash Flow	-168.36M	-118.04M	-158.32M	-265.26M	-144.23M	-106.77M
Financing Cash Flow	-29.94M	-19.34M	-144.72M	-125.71M	-158.44M	-54.30M

Diodes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 56.55 is above the 20-day moving average (MA) of 54.02, above the 50-day MA of 53.25, and above the 200-day MA of 51.80, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 81.23 is Negative, 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
ACLS	78 Outperform	2.86B	19.76	15.50%	―	-19.38%	-33.03%
DIOD	74 Outperform	$2.52B	41.27	3.49%	―	2.86%	-34.32%
SIMO	70 Outperform	3.01B	37.23	0.00%	2.18%	-0.29%	1.47%
FORM	67 Neutral	2.45B	64.05	4.44%	―	8.30%	-63.69%
POWI	55 Neutral	2.50B	75.72	0.00%	1.84%	7.16%	-21.24%
VSH	55 Neutral	2.06B	-24.55	-1.54%	2.53%	-6.36%	-151.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Diodes Corporate Events

Diodes Reports Strong Q2 2025 Financial Results

On August 7, 2025, Diodes Incorporated announced its financial results for the second quarter of 2025, reporting a revenue of $366.2 million, marking a 14% increase from the same quarter in 2024. The company experienced significant growth in product sales, particularly in Asia, driven by demand in AI-related computing and the EV automotive market in China. Despite challenges such as underloading costs and a less favorable product mix, Diodes achieved a 70% sequential growth in non-GAAP earnings. The company anticipates continued revenue growth in the third quarter, projecting a 7% sequential increase and a 12% year-over-year rise, supported by strong market demand.

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.