Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: N/A
• Average Volume (3M): 396.85K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 1.82
• Revenue Growth: 10.45%
• EPS Growth: 4.37%
• Country: US
• Employees: 7,829
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.37
• Shares Outstanding: 46,385,330
• 10 Day Avg. Volume: 293,314
• 30 Day Avg. Volume: 396,854
• PEG Ratio: -0.80
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 61.40
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $57.67
• Price Target Upside: 13.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $58.00 ▲(14.65% Upside)

Diodes' overall stock score reflects its strong financial position and revenue growth, particularly in computing and AI applications. However, margin pressures and a high valuation relative to peers present challenges. The technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand in key markets, enhancing Diodes' market position and supporting long-term expansion.

Strong Cash Flow

Robust cash flow generation supports operational flexibility and potential reinvestment in growth initiatives, strengthening financial health.

New Product Initiatives

A strong pipeline of new products, especially in automotive, positions Diodes for future growth and competitive advantage in emerging markets.

Negative Factors

Gross Margin Pressure

Decreasing gross margins indicate cost management challenges, potentially impacting profitability and requiring strategic adjustments.

Decline in Net Income

A significant drop in net income highlights profitability issues, which may hinder financial performance if not addressed effectively.

Lower EBITDA Margin

A reduced EBITDA margin suggests operational inefficiencies, potentially affecting long-term profitability and requiring operational improvements.

Diodes Business Overview & Revenue Model

Company Description

Diodes Incorporated (DIOD) is a global manufacturer and supplier of high-quality semiconductor solutions, primarily serving the consumer electronics, automotive, and industrial sectors. The company specializes in a wide range of products, including diodes, transistors, and integrated circuits, which are essential components in various electronic devices. Diodes aims to provide innovative solutions that enhance performance, efficiency, and reliability for its customers across diverse applications.

How the Company Makes Money

Diodes generates revenue primarily through the sale of its semiconductor products, which are used in a variety of applications including power management, signal conditioning, and data conversion. Key revenue streams include the sales of discrete semiconductors, such as diodes and transistors, as well as integrated circuits and specialty products. The company benefits from a diverse customer base, including large OEMs (Original Equipment Manufacturers) and contract manufacturers in the electronics industry. Additionally, Diodes has established strategic partnerships with other technology firms, which can enhance its product offerings and market reach. The company's focus on innovation and high-quality manufacturing processes contributes to its ability to command competitive pricing and maintain strong profit margins.

Diodes Financial Statement Overview

Summary

Diodes presents a stable financial position with strong balance sheet metrics and improving cash flow performance. While profitability margins have room for enhancement, the company's low leverage and solid equity base provide a strong foundation for future growth.

Income Statement

Diodes shows a modest revenue growth rate of 3.03% in the TTM, indicating a recovery from previous declines. The gross profit margin of 31.57% and net profit margin of 4.49% suggest stable profitability, though lower than historical highs. The EBIT and EBITDA margins are relatively low at 4.49% and 12.76%, respectively, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.24%, reflecting minimal leverage and financial risk. The return on equity is modest at 3.46%, suggesting efficient use of equity capital. The equity ratio of 78.83% highlights a solid capital structure with significant equity financing.

Cash Flow

Diodes exhibits a healthy free cash flow growth rate of 14.35% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.68 and free cash flow to net income ratio of 0.72 demonstrate effective cash conversion, though there is potential for further improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.31B	1.66B	2.00B	1.81B	1.23B
Gross Profit	451.39M	435.86M	658.18M	827.24M	670.36M	431.12M
EBITDA	225.91M	202.15M	420.96M	532.02M	445.02M	240.01M
Net Income	64.18M	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	391.85M	316.13M	325.63M	343.79M	370.14M	274.21M
Total Debt	100.66M	91.70M	98.36M	213.67M	334.55M	488.48M
Total Liabilities	522.37M	517.33M	557.98M	705.39M	891.77M	963.33M
Stockholders Equity	1.89B	1.80B	1.74B	1.51B	1.24B	963.82M
Cash Flow
Free Cash Flow	186.86M	46.41M	130.15M	180.77M	197.35M	111.41M
Operating Cash Flow	259.22M	119.44M	280.91M	392.50M	338.54M	187.22M
Investing Cash Flow	-167.65M	-118.04M	-158.32M	-265.26M	-144.23M	-106.77M
Financing Cash Flow	-30.11M	-19.34M	-144.72M	-125.71M	-158.44M	-54.30M

Diodes Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 50.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIOD, the sentiment is Neutral. The current price of 50.59 is above the 20-day moving average (MA) of 47.61, below the 50-day MA of 50.62, and above the 200-day MA of 49.11, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 78.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DIOD.

Diodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	78 Outperform	$2.80B	21.06	13.62%	―	-20.69%	-37.67%
SIMO	72 Outperform	$3.17B	32.09	11.88%	2.27%	-2.26%	9.74%
DIOD	70 Outperform	$2.40B	37.41	3.47%	―	10.45%	4.37%
FORM	68 Neutral	$4.59B	110.68	4.16%	―	2.29%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	61 Neutral	$2.08B	119.62	2.53%	2.30%	10.50%	-52.00%
VSH	55 Neutral	$2.14B	―	-3.59%	2.61%	-0.84%	-189.44%

Diodes Corporate Events

Diodes Reports Strong Q3 Revenue Growth

On November 6, 2025, Diodes, Inc. reported a 7% sequential and 12% year-over-year revenue increase for the third quarter of 2025, driven by strong demand in the computing market, particularly for AI-related applications. Despite slower recovery in the automotive and industrial sectors, revenue growth was noted in these areas. The company anticipates future margin expansion through improved product mix and new product introductions, with a projected 12% growth for the full year. Diodes is also gaining market share in the automotive sector with new programs launching soon.

Diodes Reports Strong Q3 2025 Financial Results

Diodes Incorporated reported its financial results for the third quarter of 2025, showing a revenue increase to $392.2 million, up from $350.1 million in the same quarter of 2024. The company experienced a 12% year-over-year growth driven by strong demand in the general computing market, particularly in AI-related server applications and data centers. Despite a slower recovery in the automotive and industrial markets, Diodes is optimistic about future growth, expecting a 12% increase in revenue for the full year. The company is also gaining market share in the automotive sector with new programs set to launch and increasing content in industrial applications.

Diodes to Host Q3 Financial Results Call

On October 16, 2025, Diodes Incorporated announced it will host a conference call on November 6, 2025, to discuss its third quarter financial results. The call will feature key executives and will be accessible via telephone and webcast, with replays available for a limited time. This event is significant for analysts and investors as it provides insights into the company’s financial performance and strategic direction.