Diodes (DIOD)
NASDAQ:DIOD
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Diodes
(NASDAQ:DIOD)
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Rating:73Outperform
Price Target:
$88.00
▲(11.96% Upside)
Action:ReiteratedDate:03/04/26
The score is supported primarily by DIOD’s very strong balance sheet and improving demand/revenue outlook described on the latest earnings call, reinforced by a technically strong uptrend. These positives are tempered by premium valuation (high P/E) and continued margin/earnings pressure from underloading and recent profitability softness.
Positive Factors
Balance Sheet Strength
Diodes' dramatic de‑leveraging and steady equity growth provide substantial financial flexibility. Very low debt reduces refinancing and interest risk, enabling sustained capex, buybacks or M&A funding and shielding operations while management executes multi‑year revenue and margin targets.
Negative Factors
Gross Margin Pressure from Underloading
Underutilized manufacturing capacity creates fixed‑cost underabsorption that directly compresses gross margins. Until utilization ramps or fabs are optimized, margin expansion targets and the promised high flow‑through on incremental revenue will be constrained across multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Diodes' dramatic de‑leveraging and steady equity growth provide substantial financial flexibility. Very low debt reduces refinancing and interest risk, enabling sustained capex, buybacks or M&A funding and shielding operations while management executes multi‑year revenue and margin targets.
Read all positive factors
Diodes (DIOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.61B
Dividend YieldN/A
Average Volume (3M)480.26K
Price to Earnings (P/E)34.6
Beta (1Y)1.60
Revenue Growth10.45%
EPS Growth4.37%
CountryUS
Employees7,829
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.34
Shares Outstanding45,877,457
10 Day Avg. Volume429,931
30 Day Avg. Volume480,258
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)1.22
Price to Sales (P/S)1.54
P/FCF Ratio16.67
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.26
Enterprise Value/Gross Profit7.23
Enterprise Value/Ebitda14.51
Forecast
1Y Price Target
$82.33Price Target Upside4.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.01
Revenue Forecast (FY)$1.68B
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 act...
How the Company Makes Money
Diodes makes money primarily by designing, manufacturing (through a combination of internal manufacturing and outsourced foundry/assembly-and-test partners), and selling semiconductor components to electronics OEMs and contract manufacturers. Reve...
Diodes Key Performance Indicators (KPIs)
Diodes Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed solid top-line momentum with broad-based revenue growth (notably in computing/AI, automotive, and industrial), strong cash generation and meaningful product/content expansion. However, margin pressure from manufacturing underloading and some sequential profitability softness temper near-term earnings visibility. Management provided constructive multi-year targets and specific margin/revenue roadmaps, indicating confidence in recovery and structural improvement.Positive Updates
Revenue Growth — Quarter and Full Year
Q4 2025 revenue of $391.6M, up 15.4% year-over-year (from $339.3M). Full-year 2025 revenue of $1.5B, up 13% year-over-year (from $1.3B) — the highest annual growth since 2021 and the fourth consecutive quarter of double-digit YoY growth.
Negative Updates
Gross Margin Pressure Year-over-Year
GAAP gross margin declined to 31.1% in Q4 2025 from 32.7% in Q4 2024; full-year GAAP gross margin fell to 31.3% in 2025 from 33.2% in 2024, reflecting margin pressure versus prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth — Quarter and Full Year
Q4 2025 revenue of $391.6M, up 15.4% year-over-year (from $339.3M). Full-year 2025 revenue of $1.5B, up 13% year-over-year (from $1.3B) — the highest annual growth since 2021 and the fourth consecutive quarter of double-digit YoY growth.
Read all positive updates
Company Guidance
For Q1 2026 the company guided revenue of approximately $395.0 million ±3% (midpoint = ~19% year-over-year and slight sequential increase), GAAP gross margin of 31.5% ±1%, non‑GAAP operating expenses of ~26.5% ±1%, net interest income of about $1.0 million, an expected tax rate of 18.5% ±3%, and ~46.4 million shares outstanding (non‑GAAP excludes $3.9 million after‑tax amortization of acquisition intangibles). Management also introduced three‑year interim targets of $2.0 billion in annual revenue with ≈$700 million in gross profit (35%+ gross margin), implying a 10.5% revenue CAGR and 15% gross‑profit CAGR, >$4 of non‑GAAP EPS (≈50% EPS CAGR), a $2.5 billion / $1.0 billion gross profit long‑term goal (40% gross margin), and an expectation of >45% gross‑profit flow‑through on incremental revenue as underloading costs and manufacturing efficiencies improve.Diodes Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.48B | 1.31B | 1.66B | 2.00B | 1.81B |
| Gross Profit | 462.44M | 435.86M | 658.18M | 827.24M | 670.36M |
| EBITDA | 230.48M | 202.15M | 420.96M | 532.02M | 445.02M |
| Net Income | 66.14M | 44.02M | 227.18M | 331.28M | 228.76M |
Balance Sheet | |||||
| Total Assets | 2.45B | 2.39B | 2.37B | 2.29B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 377.03M | 316.13M | 325.63M | 343.79M | 370.14M |
| Total Debt | 95.61M | 91.70M | 98.36M | 213.67M | 334.55M |
| Total Liabilities | 509.69M | 517.33M | 557.98M | 705.39M | 891.77M |
| Stockholders Equity | 1.88B | 1.80B | 1.74B | 1.51B | 1.24B |
Cash Flow | |||||
| Free Cash Flow | 137.15M | 46.41M | 130.15M | 180.77M | 197.35M |
| Operating Cash Flow | 215.51M | 119.44M | 280.91M | 392.50M | 338.54M |
| Investing Cash Flow | -116.18M | -118.04M | -158.32M | -265.26M | -144.23M |
| Financing Cash Flow | -54.81M | -19.34M | -144.72M | -125.71M | -158.44M |
Diodes Technical Analysis
Positive
78.60
Price Trends
66.46
Positive
58.58
Positive
55.98
Positive
Market Momentum
2.25
Negative
66.66
Neutral
77.73
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 78.6 is above the 20-day moving average (MA) of 68.45, above the 50-day MA of 66.46, and above the 200-day MA of 55.98, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIOD.
Diodes Risk Analysis
Diodes disclosed 59 risk factors in its most recent earnings report. Diodes reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diodes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.21B | 21.10 | 11.72% | ― | -20.69% | -37.67% | |
73 Outperform | $3.61B | 34.57 | 3.55% | ― | 10.45% | 4.37% | |
73 Outperform | $9.18B | 82.61 | 5.43% | ― | 2.29% | -69.81% | |
73 Outperform | $4.14B | 4.07 | 15.21% | 2.22% | -2.26% | 9.74% | |
64 Neutral | $2.99B | 90.19 | 3.17% | 2.27% | 10.50% | -52.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $2.78B | -219.07 | -0.43% | 2.67% | -0.84% | -189.44% |
* Technology Sector Average
DIOD
Diodes
78.60
39.07
98.84%
ACLS
Axcelis Technologies
104.65
55.75
114.01%
FORM
Formfactor
117.80
88.04
295.83%
POWI
Power Integrations
53.89
6.49
13.69%
SIMO
Silicon Motion
121.75
80.46
194.89%
VSH
Vishay Intertechnology
20.49
7.90
62.77%
Diodes Corporate Events
Business Operations and StrategyFinancial Disclosures
Diodes Posts Strong Q4 Growth, Sets Ambitious Targets
Positive
Feb 12, 2026
On February 10, 2026, Diodes reported that fourth quarter 2025 revenue rose 15.4% year over year to $391.6 million, capping a 13% increase for the full year to $1.5 billion and marking a fourth straight quarter of double-digit growth. Strong deman...
Business Operations and StrategyStock BuybackFinancial Disclosures
Diodes Posts Strong Q4 Results and Bullish 2026 Outlook
Positive
Feb 10, 2026
Diodes Incorporated reported preliminary, unaudited fourth-quarter 2025 results on February 10, 2026, with revenue of $391.6 million at the high end of guidance, up 15.4% year-on-year, and full-year 2025 revenue growth of 13%, its strongest annual...
Financial Disclosures
Diodes to Announce Q4 and Full-Year 2025 Results
Neutral
Jan 20, 2026
On January 20, 2026, Diodes Incorporated announced it will release its fourth quarter and full-year 2025 financial results on February 10, 2026, with the earnings announcement scheduled for that afternoon followed by a conference call at 4:00 p.m....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.