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Diodes
(NASDAQ:DIOD)
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Rating:69Neutral
Price Target:
$94.00
▲(7.91% Upside)
Action:Reiterated
Date:07/29/26
DIOD’s score is driven mainly by solid underlying financial strength (especially the very low-leverage balance sheet) and a strong, improving outlook from the latest earnings call with higher growth and margin guidance. Offsetting these positives are weak intermediate-term technical momentum (trading below key short/medium moving averages) and a demanding valuation (P/E ~47) with no dividend yield support.
Positive Factors
Very low leverage / strong balance sheet
Diodes' extremely low debt-to-equity (~0.03) and sizable cash position provide durable financial flexibility for a cyclical semiconductor firm. This conservatism supports multi-year capex, acquisitions, and weathering demand troughs without forcing distress financing or asset sales.
Negative Factors
Margins remain well below prior-cycle peaks
TTM net margin near 5.5% is materially below prior-cycle double-digit levels, limiting free cash flow upside and reducing buffer against cost inflation. Sustained margin rebuilding is required to convert revenue growth into stronger, predictable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Diodes' extremely low debt-to-equity (~0.03) and sizable cash position provide durable financial flexibility for a cyclical semiconductor firm. This conservatism supports multi-year capex, acquisitions, and weathering demand troughs without forcing distress financing or asset sales.
Read all positive factors
Diodes Key Performance Indicators (KPIs)
Diodes (DIOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.78B
Dividend YieldN/A
Average Volume (3M)584.21K
Price to Earnings (P/E)44.5
Beta (1Y)1.85
Revenue Growth15.97%
EPS Growth234.66%
CountryUS
Employees7,989
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.85
Shares Outstanding45,944,733
10 Day Avg. Volume421,537
30 Day Avg. Volume584,212
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$129.50Price Target Upside48.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.7
Revenue Forecast (FY)$1.78B
Diodes Business Overview & Revenue Model
Company Description
Diodes Incorporated operates globally, specializing in the development, production, and distribution of standard, application-focused semiconductor components across the discrete, logic, analog, and mixed-signal sectors. The company primarily conc...
How the Company Makes Money
Diodes makes money primarily by selling semiconductor components and integrated circuits, generating revenue on a per-unit basis from shipment volume multiplied by average selling prices, with profitability influenced by product mix (higher-value ...
Diodes Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial rebound: double-digit YoY revenue growth, margin expansion, meaningful improvement in GAAP and non-GAAP profitability, higher EBITDA and stronger cash generation. Management reiterated design-win momentum across automotive, industrial and AI/data-center markets and provided confident guidance for Q2. Key near-term challenges include an inventory dollar build concentrated in raw materials, FX and investment impairments, some sequential softness in computing (notebooks/motherboards) and a multiyear timeline to fully ramp utilization at two fabs. On balance, positive growth, margin and cash trends outweigh the manageable challenges.Positive Updates
Strong Revenue Growth
Q1 revenue of $405.5M, up 22.1% year-over-year (vs $332.1M) and up 3.5% sequentially (vs $391.6M); sixth consecutive quarter of double-digit YoY growth and the highest YoY increase since Q4 2021.
Negative Updates
Inventory Dollar Build in Raw Materials
Total inventory dollars increased $21.2M sequentially to $492.8M, driven by a $24M increase in raw materials (work-in-process +$0.5M, finished goods -$3.3M), which could reflect forward buying or slower conversion to finished goods.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 revenue of $405.5M, up 22.1% year-over-year (vs $332.1M) and up 3.5% sequentially (vs $391.6M); sixth consecutive quarter of double-digit YoY growth and the highest YoY increase since Q4 2021.
Read all positive updates
Company Guidance
Diodes guided second-quarter revenue of approximately $435 million, plus or minus 3% (the midpoint implies roughly +18.8% year‑over‑year and +7.3% sequential growth), GAAP gross margin of about 32.8% ±1%, and non‑GAAP adjusted EPS of $0.60 ±$0.10; management also reiterated a 2026 expected tax rate of ~18% ±3%, noted annualized CapEx targeting of ~5–9% of revenue (Q1 CapEx was $31.9M, or 7.9% of revenue), and positioned this near‑term guidance against its three‑year targets of $2.0B revenue, $700M gross profit and over $4 of non‑GAAP EPS.Diodes Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.48B | 1.31B | 1.66B | 2.00B | 1.81B |
| Gross Profit | 486.53M | 462.44M | 435.86M | 658.18M | 827.24M | 670.36M |
| EBITDA | 252.86M | 230.48M | 202.15M | 420.96M | 532.02M | 445.02M |
| Net Income | 85.54M | 66.14M | 44.02M | 227.18M | 331.28M | 228.76M |
Balance Sheet | ||||||
| Total Assets | 2.50B | 2.45B | 2.39B | 2.37B | 2.29B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 409.39M | 377.03M | 316.13M | 325.63M | 343.79M | 370.14M |
| Total Debt | 104.88M | 95.61M | 91.70M | 98.36M | 213.67M | 334.55M |
| Total Liabilities | 546.86M | 509.69M | 517.33M | 557.98M | 705.39M | 891.77M |
| Stockholders Equity | 1.89B | 1.88B | 1.80B | 1.74B | 1.51B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 128.74M | 137.15M | 46.41M | 130.15M | 180.77M | 197.35M |
| Operating Cash Flow | 223.08M | 215.51M | 119.44M | 280.91M | 392.50M | 338.54M |
| Investing Cash Flow | -124.40M | -116.18M | -118.04M | -158.32M | -265.26M | -144.23M |
| Financing Cash Flow | -54.59M | -54.81M | -19.34M | -144.72M | -125.71M | -158.44M |
Diodes Technical Analysis
Negative
87.11
Price Trends
100.50
Negative
93.59
Negative
74.55
Positive
Market Momentum
-3.99
Positive
39.72
Neutral
55.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIOD, the sentiment is Negative. The current price of 87.11 is below the 20-day moving average (MA) of 89.81, below the 50-day MA of 100.50, and above the 200-day MA of 74.55, indicating a neutral trend. The MACD of -3.99 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 55.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.38B | 202.77 | 2.44% | 1.34% | 3.11% | -54.05% | |
69 Neutral | $8.51B | 13.87 | 20.24% | 0.74% | 69.56% | 260.55% | |
69 Neutral | $3.78B | 44.50 | 4.54% | ― | 15.97% | 234.66% | |
68 Neutral | $4.01B | 40.49 | 9.79% | ― | -11.75% | -41.15% | |
67 Neutral | $8.28B | 71.76 | 10.96% | ― | 18.01% | 161.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | $5.25B | 2,426.95 | 0.11% | 1.05% | 9.86% | ― |
* Technology Sector Average
DIOD
Diodes
82.32
32.86
66.44%
ACLS
Axcelis Technologies
130.38
59.50
83.94%
FORM
Formfactor
106.20
76.90
262.46%
POWI
Power Integrations
60.71
12.21
25.17%
SIMO
Silicon Motion
253.60
178.46
237.52%
VSH
Vishay Intertechnology
34.22
18.38
116.01%
Diodes Corporate Events
Executive/Board Changes
Diodes Appoints Veteran Executive Evan Yu to Board
Positive
Jul 28, 2026
On July 28, 2026, Diodes Incorporated announced that seasoned semiconductor executive Evan Yu has been elected to its Board of Directors as an independent director, effective August 1, 2026. The company highlighted Yu’s extensive leadership ...
Business Operations and StrategyM&A Transactions
Diodes to Acquire ElevATE Semiconductor in Cash Deal
Positive
Jul 15, 2026
On July 10, 2026, Diodes entered into a definitive Agreement and Plan of Merger to acquire San Diego-based ElevATE Semiconductor, a fabless IC specialist serving the automated test equipment market, in an all-cash transaction anchored by a $250 mi...
Business Operations and StrategyFinancial Disclosures
Diodes Reports Strong Preliminary Q1 Results and Outlook
Positive
May 12, 2026
On May 7, 2026, Diodes reported preliminary, unaudited first-quarter 2026 results showing revenue of $405.5 million, up 22.1% year-on-year and 3.5% sequentially, marking its fifth straight quarter of double-digit annual growth amid recovering dema...
Executive/Board ChangesShareholder Meetings
Diodes Chairman Resigns After Shareholder Vote; New Chairwoman Appointed
Neutral
May 12, 2026
At Diodes Incorporated’s annual meeting on May 11, 2026, long-serving chairman Dr. Keh-Shew Lu failed to secure majority support, receiving more votes withheld than in favor, and subsequently chose to resign immediately from the board rather...
Business Operations and StrategyFinancial Disclosures
Diodes Reports Strong Q1 2026 Results, Guides Higher
Positive
May 8, 2026
Diodes Incorporated reported preliminary, unaudited financial results for the quarter ended March 31, 2026, with revenue rising to $405.5 million from $332.1 million a year earlier and GAAP gross margin improving to 31.8%. The company swung to GAA...
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.