Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 451.79K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 1.63
• Revenue Growth: 2.86%
• EPS Growth: -34.32%
• Country: US
• Employees: 7,829
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): 0.32
• Shares Outstanding: 46,442,734
• 10 Day Avg. Volume: 420,924
• 30 Day Avg. Volume: 451,788
• 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: 0.89
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: 10.19
• 1Y Price Target: $58.67
• Price Target Upside: 4.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $59.00 ▲(5.00% Upside)

Diodes Incorporated demonstrates strong financial performance and positive earnings call sentiment, driven by growth in key markets like AI and EV. However, technical indicators suggest limited short-term upside, and the stock's high valuation presents a risk. The company's solid financial base and positive market outlook are significant strengths, but potential margin pressures and overvaluation concerns temper the overall score.

Positive Factors

Leadership Strategy

A leadership transition has shifted strategy with a clear roadmap to drive top and bottom line growth.

Revenue Outlook

Guidance for the upcoming quarter shows a positive revenue outlook, with expectations exceeding consensus estimates.

Strategic Investments

The company's disciplined expense management, strategic investments, and solid balance sheet are highlighted as key strengths.

Negative Factors

Cost Structure

Management is shifting its manufacturing philosophy to focus on developing new, high-performance technologies and improving the cost structure, using a hybrid model that does not expect to acquire new fabs.

Manufacturing 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 Challenges

Management is optimistic about growth and margin recovery, supported by company-specific factors to navigate demand challenges.

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: 56.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 56.19 is above the 20-day moving average (MA) of 52.18, above the 50-day MA of 53.17, and above the 200-day MA of 52.18, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 82.88 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
DIOD	74 Outperform	$2.57B	41.01	3.49%	―	2.86%	-34.32%
SIMO	70 Outperform	$2.68B	32.69	10.16%	2.53%	-0.29%	1.47%
SYNA	64 Neutral	$2.73B	14.47	-3.34%	―	11.98%	-138.59%
FORM	62 Neutral	$2.27B	52.02	4.53%	―	8.30%	-63.69%
KLIC	62 Neutral	$1.96B	475.95	0.66%	2.17%	-9.54%	―
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
VSH	49 Neutral	$2.09B	26.74	-4.11%	2.57%	-6.36%	-151.95%

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.

Diodes Reports Strong Q2 2025 Financial Results

Diodes Incorporated reported its financial results for the second quarter of 2025, highlighting a revenue of $366.2 million, which marks a 10% sequential and 14% year-over-year increase. The company achieved a GAAP net income of $46.1 million, a significant improvement from the same quarter last year and the previous quarter. Despite challenges such as underloading costs due to inventory depletion, Diodes saw strong growth in the consumer market and anticipates continued momentum into the third quarter, driven by demand in Asia for AI-related applications and the EV automotive market in China.

Diodes to Discuss Q2 Results on August 7

Diodes Incorporated announced it will host a conference call on August 7, 2025, to discuss its second quarter financial results. The call will be led by key executives including CEO Gary Yu, CFO Brett Whitmire, and Senior VP Emily Yang, with the financial results being released earlier that day. This event signifies Diodes’ commitment to transparency and engagement with analysts and investors, potentially impacting its market perception and stakeholder confidence.