Diodes (DIOD) AI Stock Analysis

• Market Cap: $2.26B
• Dividend Yield: N/A
• Average Volume (3M): 601.51K
• Price to Earnings (P/E): 88.3
• Beta (1Y): 1.67
• Revenue Growth: -10.37%
• EPS Growth: -85.11%
• Country: US
• Employees: 7,829
• Sector: Technology
• Sector Strength: 76
• Industry: Semiconductors
• EPS (TTM): 0.19
• Shares Outstanding: 46,401,360
• 10 Day Avg. Volume: 597,133
• 30 Day Avg. Volume: 601,508
• PEG Ratio: -1.69
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.80
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $52.50
• Price Target Upside: 7.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Diodes Incorporated shows strong financial stability with low leverage and robust cash flow. However, declining profitability and high valuation metrics present concerns. Positive earnings guidance and strategic initiatives support optimism, but are balanced by significant external risks, resulting in a moderate overall stock score.

Positive Factors

Demand in Computing Segment

The company's sales upside is driven by strength in the Computing segment on data center and AI server demand in Asia.

Manufacturing Footprint

DIOD’s hybrid and well-diversified regional manufacturing footprint should help mitigate much of the tariff-driven cost and logistics challenges.

Sales Growth

The sales outlook of $355M reflects a 7% QoQ increase, which is about 3% better than the prior consensus view, and will mark the first quarter of both YoY and sequential growth this cycle.

Negative Factors

Auto and Industrial Recovery

Gross margin pressured by slower recovery in the Auto and Industrial sectors, alongside utilization and product mix challenges.

Gross Margin Challenges

Gross margin is currently pressured by slower recovery in the Auto and Industrial sectors, alongside utilization and product mix challenges.

Gross Margin Pressure

Gross margin is pressured on slower Auto and Industrial recovery, utilization, and product mix.

Diodes Business Overview & Revenue Model

Company Description

Diodes Incorporated (DIOD) is a global manufacturer and supplier of high-quality application-specific standard products within the broad discrete, logic, and analog semiconductor markets. The company focuses on providing leading-edge semiconductor solutions to meet the needs of the automotive, industrial, computing, consumer electronics, and communications sectors. Diodes' product portfolio includes diodes, rectifiers, transistors, MOSFETs, protection devices, functional specific arrays, single gate logic, amplifiers and comparators, Hall-effect and temperature sensors, power management devices, and more.

How the Company Makes Money

Diodes Incorporated generates revenue through the design, manufacturing, and sale of a wide range of semiconductor products. The company sells its products directly to equipment manufacturers and indirectly through distributors in various sectors, including automotive, industrial, and consumer electronics. A key component of Diodes' revenue model is its broad and diversified product portfolio, which allows it to address multiple market segments and applications. Strategic acquisitions and partnerships also play a role in expanding its market presence and enhancing its technological capabilities, contributing to its overall earnings.

Diodes Financial Statement Overview

Summary

Diodes shows a mixed financial scenario with a strong balance sheet but declining profitability and revenue. Cash flow is adequate but reduced, suggesting operational challenges. Improving revenue and profit margins is crucial for better financial health.

Income Statement

Diodes has experienced a significant revenue decline from 2022 to 2024, which is a concern in terms of growth. The gross profit margin stands at 33.2% for 2024, showing a decrease from previous years, impacting profitability negatively. The net profit margin has declined to 3.4% in 2024, indicating reduced efficiency in converting revenue to profit. EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 75.2% in 2024, suggesting financial stability. The debt-to-equity ratio is extremely low at 0.6%, indicating minimal leverage and reduced financial risk. However, the return on equity has dropped to 2.5% in 2024, which could be a concern for investors seeking returns.

Cash Flow

Diodes' free cash flow has decreased in recent years, with a 2024 free cash flow of $119.4 million, down from $180.8 million in 2022. The operating cash flow to net income ratio is robust at 2.7, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting challenges in maintaining cash flow growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.31B	1.66B	2.00B	1.81B	1.23B
	Gross Profit
435.86M	658.18M	827.24M	670.36M	431.12M
	EBIT
50.45M	250.57M	408.19M	275.99M	134.33M
	EBITDA
202.15M	420.96M	532.02M	444.47M	239.56M
	Net Income Common Stockholders
44.02M	227.18M	331.28M	228.76M	98.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
316.13M	325.63M	343.79M	370.14M	274.21M
	Total Assets
2.39B	2.37B	2.29B	2.19B	1.98B
	Total Debt
91.70M	98.36M	213.67M	301.02M	450.60M
	Net Debt
-216.97M	-217.10M	-123.06M	-62.58M	182.54M
	Total Liabilities
517.33M	557.98M	705.39M	891.77M	963.33M
	Stockholders Equity
1.80B	1.74B	1.51B	1.24B	963.82M
Cash Flow		Free Cash Flow
46.41M	130.15M	180.77M	197.35M	111.41M
	Operating Cash Flow
119.44M	280.91M	392.50M	338.54M	187.22M
	Investing Cash Flow
-118.04M	-158.32M	-265.26M	-144.23M	-106.77M
	Financing Cash Flow
-19.34M	-144.72M	-125.71M	-158.44M	-54.30M

Diodes Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 48.62 is above the 20-day moving average (MA) of 40.45, above the 50-day MA of 41.80, and below the 200-day MA of 56.63, indicating a neutral trend. The MACD of 1.92 indicates Negative momentum. The RSI at 70.08 is Negative, neither overbought nor oversold. The STOCH value of 93.98 is Negative, 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
SYNA	73 Outperform	$2.52B	15.81	12.60%	―	10.60%	―
SIMO	70 Outperform	$2.13B	22.63	12.33%	3.15%	10.78%	58.82%
FORM	66 Neutral	$2.47B	46.34	5.74%	―	15.33%	-47.04%
KLIC	64 Neutral	$1.78B	93.55	2.29%	2.40%	-6.17%	―
DIOD	62 Neutral	$2.26B	88.30	1.44%	―	-10.37%	-85.11%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
VSH	58 Neutral	$2.07B	26.74	-3.14%	2.62%	-11.31%	-127.88%

Diodes Corporate Events

Diodes Appoints Gary Yu as New CEO

On May 13, 2025, Diodes Incorporated appointed Gary Yu as the new Chief Executive Officer, succeeding Dr. Keh-Shew Lu, who will remain as Chairman of the Board and a special advisor. Mr. Yu, who has been with the company since 2008, brings extensive experience to his new role, having previously served in various leadership positions within the company. This leadership change is part of Diodes’ long-term succession plan and is expected to drive the company’s growth and profitability. Additionally, the company held its annual meeting on May 12, 2025, where stockholders elected seven directors, approved executive compensation, and ratified the appointment of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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.

Spark’s Take on DIOD Stock

According to Spark, TipRanks’ AI Analyst, DIOD is a Neutral.

Diodes Incorporated presents a stable financial structure with strong cash flow and low leverage, but faces challenges in profitability and revenue growth. Technical indicators reflect potential overvaluation and caution in stock price trends. Positive earnings guidance offers some optimism, but is tempered by net losses and external risks like tariffs. Overall, while the company has a strong foundational balance, profitability and valuation concerns moderate the stock’s attractiveness.

To see Spark’s full report on DIOD stock, click here.

Diodes Announces $100 Million Stock Repurchase Program

On May 8, 2025, Diodes Incorporated reported a 10% year-over-year revenue growth for the first quarter, driven by strong performance in the computing market in Asia and improving conditions in Europe and North America. The company’s automotive and industrial markets contributed 42% of the product revenue, and a $100 million stock repurchase program was announced, highlighting confidence in future growth. Despite a net loss of $4.4 million for the quarter, Diodes is strategically positioned with a hybrid manufacturing model to meet global demand, and anticipates further growth in the coming quarters.

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.

Spark’s Take on DIOD Stock

According to Spark, TipRanks’ AI Analyst, DIOD is a Neutral.

Diodes’ overall score reflects solid financial stability but declining profitability and revenue. Technical trends are weak, and the stock is overvalued with a high P/E ratio. While the earnings call offered positive guidance and strategic moves, challenges such as margin declines and tariff uncertainties remain significant risks.

To see Spark’s full report on DIOD stock, click here.

Diodes Reports Q1 2025 Revenue Growth Amid Net Loss

Diodes Incorporated reported its financial results for the first quarter of 2025, showing a 10% year-over-year revenue growth to $332.1 million, driven by strong performance in the computing market in Asia and improving conditions in Europe and North America. Despite achieving revenue growth, the company experienced a GAAP net loss of $4.4 million due to factors such as reduced channel inventory and the impact of the Chinese New Year holiday on manufacturing operations. However, Diodes anticipates continued growth, particularly in the automotive and industrial markets, and expects to see margin improvements as inventory levels normalize and global demand increases.

Spark’s Take on DIOD Stock

According to Spark, TipRanks’ AI Analyst, DIOD is a Neutral.

Diodes Inc. scores a 56, indicating moderate concerns. The company’s financial performance is mixed, with strong balance sheet stability but declining profitability and revenue. Technical indicators show bearish momentum, and the high P/E ratio signals potential overvaluation. While the earnings call and recent corporate events provide some optimism, the overall outlook remains cautious due to persistent market and operational challenges.

To see Spark’s full report on DIOD stock, click here.

Diodes Schedules Q1 Financial Results Conference Call

On April 17, 2025, Diodes Incorporated announced that it will host a conference call on May 8, 2025, to discuss its first quarter financial results. The call will feature key executives, including the President, CFO, and Senior VP of Worldwide Sales and Marketing. This announcement is significant for analysts and investors as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Spark’s Take on DIOD Stock

According to Spark, TipRanks’ AI Analyst, DIOD is a Neutral.

Diodes faces financial challenges with declining revenue and profit margins, though it maintains a strong balance sheet with low leverage. Technical indicators point to a bearish trend, and valuation suggests potential overpricing. The recent earnings call provides some optimism with growth in key markets and strategic initiatives in AI, but challenges in core markets and negative cash flow remain concerns. Overall, Diodes has potential, but significant risks and valuation concerns temper its stock score.

To see Spark’s full report on DIOD stock, click here.