📊 DIOD Key Takeaways
Is Diodes Inc. /Del/ (DIOD) a Good Investment?
DIOD exhibits strong financial stability with excellent liquidity (3.17x current ratio), minimal debt (0.01x D/E), and solid free cash flow generation ($32.4M), but faces concerning profitability deterioration with net income declining 4.4% YoY despite 13% revenue growth. Extremely thin margins (3.7% net, 4.9% operating) and abysmal returns on equity (0.8%) suggest operational inefficiency or cost pressures that offset top-line growth.
Diodes shows solid top-line momentum, positive free cash flow generation, and an exceptionally strong balance sheet with high liquidity and minimal leverage. However, the quality of earnings is mixed because operating profitability is weak, net income declined year over year, and returns on equity and assets remain modest for a semiconductor business.
Diodes Inc. /Del/ Key Strengths (DIOD)
- Fortress balance sheet with $394M cash, only $25.3M long-term debt, and minimal leverage (0.01x D/E)
- Strong liquidity position with 3.17x current ratio and 1.97x quick ratio provides significant financial flexibility
- Positive free cash flow of $32.4M (8.0% FCF margin) demonstrates cash generation capability despite profitability challenges
- Revenue growth of 13% YoY shows market demand and top-line momentum
- Revenue growth of 13.0% YoY with positive free cash flow of $137.15M
- Very strong financial health supported by $367.21M cash, a 3.32x current ratio, and only $25.67M of long-term debt
- Healthy gross margin of 31.2% and solid operating cash flow of $215.51M indicate the core business remains cash generative
DIOD Stock Risks: Diodes Inc. /Del/ Investment Risks
- Net income declining 4.4% YoY while revenue grows 13% indicates deteriorating operational efficiency and potential margin compression
- Critically thin profit margins (3.7% net, 4.9% operating) leave minimal buffer for revenue volatility or cost increases
- Extremely poor capital efficiency with ROE of 0.8% and ROA of 0.6% suggests capital is not generating adequate returns
- Operating cash flow ($64.3M) significantly exceeds net income ($15M), potentially masking underlying profitability weakness
- Operating margin of 2.4% is thin and leaves limited cushion if demand weakens or costs rise
- Net income fell 4.4% YoY despite higher revenue, suggesting margin pressure or weaker earnings quality
- Low ROE of 3.5% and ROA of 2.7% indicate inefficient conversion of capital into profits
Key Metrics to Watch
- Operating margin trend - must improve from 4.9% to justify equity ownership in semiconductor sector
- Net income growth trajectory - critical to see whether profitability can stabilize and grow with revenue
- Gross margin sustainability - at 31.8%, any further compression would be concerning given thin operating leverage
- Operating margin trend
- Free cash flow margin
Diodes Inc. /Del/ (DIOD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.17x current ratio provides a solid financial cushion.
DIOD Profit Margin, ROE & Profitability Analysis
DIOD vs Technology Sector: How Diodes Inc. /Del/ Compares
How Diodes Inc. /Del/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Diodes Inc. /Del/ Stock Overvalued? DIOD Valuation Analysis 2026
Based on fundamental analysis, Diodes Inc. /Del/ has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Diodes Inc. /Del/ Balance Sheet: DIOD Debt, Cash & Liquidity
DIOD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Diodes Inc. /Del/'s revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $4.91 reflects profitable operations.
DIOD Revenue Growth, EPS Growth & YoY Performance
DIOD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $332.1M | -$4.4M | $-0.10 |
| Q3 2025 | $350.1M | $13.7M | $0.30 |
| Q2 2025 | $319.8M | $8.0M | $0.17 |
| Q1 2025 | $302.0M | -$4.4M | $-0.10 |
| Q3 2024 | $350.1M | $13.7M | $0.30 |
| Q2 2024 | $319.8M | $8.0M | $0.17 |
| Q1 2024 | $302.0M | $14.0M | $0.30 |
| Q3 2023 | $404.6M | $48.7M | $1.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Diodes Inc. /Del/ Dividends, Buybacks & Capital Allocation
DIOD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Diodes Inc. /Del/ (CIK: 0000029002)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DIOD
What is the AI rating for DIOD?
Diodes Inc. /Del/ (DIOD) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DIOD's key strengths?
Claude: Fortress balance sheet with $394M cash, only $25.3M long-term debt, and minimal leverage (0.01x D/E). Strong liquidity position with 3.17x current ratio and 1.97x quick ratio provides significant financial flexibility. ChatGPT: Revenue growth of 13.0% YoY with positive free cash flow of $137.15M. Very strong financial health supported by $367.21M cash, a 3.32x current ratio, and only $25.67M of long-term debt.
What are the risks of investing in DIOD?
Claude: Net income declining 4.4% YoY while revenue grows 13% indicates deteriorating operational efficiency and potential margin compression. Critically thin profit margins (3.7% net, 4.9% operating) leave minimal buffer for revenue volatility or cost increases. ChatGPT: Operating margin of 2.4% is thin and leaves limited cushion if demand weakens or costs rise. Net income fell 4.4% YoY despite higher revenue, suggesting margin pressure or weaker earnings quality.
What is DIOD's revenue and growth?
Diodes Inc. /Del/ reported revenue of $405.5M.
Does DIOD pay dividends?
Diodes Inc. /Del/ does not currently pay dividends.
Where can I find DIOD SEC filings?
Official SEC filings for Diodes Inc. /Del/ (CIK: 0000029002) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DIOD's EPS?
Diodes Inc. /Del/ has a diluted EPS of $0.32.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DIOD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Diodes Inc. /Del/ has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DIOD stock overvalued or undervalued?
Valuation metrics for DIOD: ROE of 0.8% (sector avg: 22%), net margin of 3.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is DIOD's AI grade for 2026?
Our dual AI analysis gives Diodes Inc. /Del/ a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DIOD's free cash flow?
Diodes Inc. /Del/'s operating cash flow is $64.3M, with capital expenditures of $31.9M. FCF margin is 8.0%.
How does DIOD compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.7% (avg: 18%), ROE 0.8% (avg: 22%), current ratio 3.17 (avg: 2.5).