Diodes Incorporated

Diodes Incorporated

DIOD·NASDAQ

$116.22

+14%
TechnologySemiconductors

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.

At a Glance

Live Snapshot
Market Cap$5.34B
EPS1.4300
P/E Ratio81.27
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

High confidence

Valuation multiple is elevated (P/E 81.3).

Valuation inputs: P/E 81.3, earnings yield +1.2%, momentum +14.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +3.5%, ROIC +1.4%).

Profitability stack: net margin +4.5%, ROE +3.5%, ROIC +1.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +20.8%, momentum +14.0%, net margin +4.5%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

diod

Diodes Incorporated Market vs Earnings Trajectory

DIOD · NASDAQ

Loading price and EPS data...

Diodes Incorporated

Diodes Incorporated Fair Value Envelope

DIOD · NASDAQ

Our analysis suggests that DIOD has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $116.22, this represents a potential HIDDEN relative to our calculated worth for Diodes Incorporated.

Intrinsic Value
Current Price: $116.22
3Y-80.0%
5Y-26.0%
10Y+333.0%
3Y-26.0%
5Y+21.0%
10Y+57.0%
3Y-80.0%
5Y-33.0%
10Y+315.0%
3Y-45.0%
5Y+15.0%
10Y+73.0%
3Y-24.0%
5Y+23.0%
10Y+107.0%
3Y+7.0%
5Y+24.0%
10Y+60.0%
Diodes Incorporated

Diodes Incorporated Profit Bridge

DIOD · NASDAQ
Revenue1.48B
Cost of Goods Sold (1.02B)
Gross Profit462.44M
Operating Expenses (426.97M)
Operating Income35.46M
Interest Expense (2.78M)
Other Income/Expense48.50M
Pretax Income83.96M
Income Tax (14.79M)
Net Income66.14M
Net Income
66.14M

Profitability Analysis

Gross Margin

31.2%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

2.4%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

4.5%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

17.6%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

31.20%
Gross Profit Margin
-6%
3Y-25.0%
5Y-11.0%
10Y+2.0%
2.39%
Operating Profit Margin
-38%
3Y-88.0%
5Y-78.0%
10Y-41.0%
4.46%
Net Profit Margin
33%
3Y-73.0%
5Y-44.0%
10Y+164.0%
3.52%
Return on Equity
44%
3Y-84.0%
5Y-65.0%
10Y+72.0%
2.70%
Return on Assets
46%
3Y-81.0%
5Y-45.0%
10Y+159.0%
1.38%
Return on Invested Capital
-31%
3Y-92.0%
5Y-79.0%
10Y-33.0%
DIOD

Diodes Incorporated Cash Conversion Engine

DIOD · NASDAQ
Net Income69.17M
Depreciation & Amortization143.75M
Stock-Based Compensation25.75M
Change in Working Capital36.48M
Others-52.15M
Capital Expenditures-78.36M
Free Cash Flow137.15M

Cash Flow Quality Analysis

FCF Conversion Rate

198.3%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

36.4%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+195.5%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$36.48M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

diod

Diodes Incorporated Funding & Solvency Profile

DIOD · NASDAQ
Cash & Cash Equivalents394.06M
Net Receivables304.46M
Inventory492.76M
Other Current Assets101.20M
Total Current Assets1 B
Property, Plant & Equipment700.84M
Goodwill & Intangible Assets223.71M
Long-Term Investments154.66M
Other Non-Current Assets57.56M
Total Non-Current Assets913 M
Total Assets
2.50B

Financial Health Analysis

Current Ratio

3.17x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.28x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

891 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

52% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Diodes Incorporated Street Expectations Map

DIOD · NASDAQ

Wall Street analysts project that DIOD stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 120.00, with estimates ranging from a low of 120.00 to a high of 120.00.

Lowest Target
120.00
3.25%
Consensus Target
120.00
3.25%
Highest Target
120.00
3.25%

The consensus 1-year price target stands at 120.00, with estimates ranging from a low of 120.00 to a high of 120.00.

Analyst Consensus Analysis

Upside Potential

+3.3%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

diod

Diodes Incorporated Insider Positioning

DIOD · NASDAQ

During the last 12 months, insiders have sold $12.33M worth of DIOD shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

69.0K

7.40M

Net Activity

-7.4M

-$7.40M

3-6 Months

Bought

0

0.00

Sold

66.3K

4.50M

Net Activity

-4.5M

-$4.50M

6-9 Months

Bought

0

0.00

Sold

3.9K

185.09K

Net Activity

-185K

-$185K

9-12 Months

Bought

0

0.00

Sold

4.3K

239.06K

Net Activity

-239K

-$239K

Top Buyers

No buying activity

Top Sellers

1
LKS

Lu Keh Shew

Director

50.6K shares2 transactions

$3.35M

2
TF

Tang Francis

Officer: Chief Technology Officer

28.1K shares4 transactions

$3.11M

3
WBR

Whitmire Brett R

Officer: Cfo

25.3K shares4 transactions

$2.30M

4
YE

Yang Emily

Officer: Svp Worldwide Sales/Marketing

15.1K shares9 transactions

$1.33M

5
YG

Yu Gary

Director, Officer: President And Ceo

8.5K shares3 transactions

$716K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $12.33M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$7.40M

Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
 

diod Dividend History

DIOD
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%