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DIOD Stock Analysis - DIODES INC /DEL/ AI Rating

DIOD Nasdaq Semiconductors & Related Devices DE CIK: 0000029002
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
BUY
72% Conf
Pending
Analysis scheduled

📊 DIOD Key Takeaways

Revenue: $1.5B
Net Margin: 4.5%
Free Cash Flow: $137.2M
Current Ratio: 3.32x
Debt/Equity: 0.01x
EPS: $1.43
AI Rating: BUY with 72% confidence

Investment Thesis

Claude

Diodes Inc demonstrates solid financial health with strong liquidity (3.32x current ratio), minimal leverage (0.01x debt/equity), and robust free cash flow generation ($137.2M, 9.3% FCF margin). Revenue growth of 13% YoY is respectable for semiconductors, though profitability margins are compressed with operating margin at just 2.4%, indicating operational efficiency challenges despite gross margin of 31.2%.

DIOD Strengths

Claude
  • + Exceptional liquidity position with current ratio of 3.32x and $367.2M cash
  • + Minimal financial leverage with debt/equity of 0.01x and strong interest coverage of 15.2x
  • + Solid free cash flow generation of $137.2M supporting operational sustainability
  • + Double-digit revenue growth of 13% YoY in semiconductor sector
  • + Healthy gross margin of 31.2% indicating pricing power and cost structure

DIOD Risks

Claude
  • ! Extremely thin operating margin of 2.4% and net margin of 4.5% suggests limited profitability leverage and pricing pressure
  • ! Net income declined 4.4% YoY despite 13% revenue growth, indicating deteriorating operational efficiency
  • ! Low ROE of 3.5% and ROA of 2.7% reflect suboptimal capital deployment and asset utilization
  • ! Capital intensity with capex of $78.4M (5.2% of revenue) may constrain future cash returns
  • ! Semiconductor sector cyclicality and competitive pricing pressures pose ongoing margin risks

Key Metrics to Watch

Claude
  • * Operating margin expansion trajectory and cost control initiatives
  • * Revenue growth sustainability and market demand normalization
  • * Free cash flow consistency and capital allocation efficiency
  • * Gross margin stability amid competition and supply chain dynamics
  • * Return on equity improvement and profitability leverage

DIOD Financial Metrics

Revenue
$1.5B
Net Income
$66.1M
EPS (Diluted)
$1.43
Free Cash Flow
$137.2M
Total Assets
$2.4B
Cash Position
$367.2M

💡 AI Analyst Insight

Strong liquidity with a 3.32x current ratio provides a solid financial cushion.

DIOD Profitability Ratios

Gross Margin 31.2%
Operating Margin 2.4%
Net Margin 4.5%
ROE 3.5%
ROA 2.7%
FCF Margin 9.3%

DIOD vs Technology Sector

How DIODES INC /DEL/ compares to Technology sector averages

Net Margin
DIOD 4.5%
vs
Sector Avg 18.0%
DIOD Sector
ROE
DIOD 3.5%
vs
Sector Avg 22.0%
DIOD Sector
Current Ratio
DIOD 3.3x
vs
Sector Avg 2.5x
DIOD Sector
Debt/Equity
DIOD 0.0x
vs
Sector Avg 0.5x
DIOD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

DIOD Balance Sheet & Liquidity

Current Ratio
3.32x
Quick Ratio
2.08x
Debt/Equity
0.01x
Debt/Assets
20.8%
Interest Coverage
15.19x
Long-term Debt
$25.7M

DIOD 5-Year Financial Trend

DIOD 5-year financial data: Year 2021: Revenue $1.8B, Net Income $153.3M, EPS $2.96. Year 2022: Revenue $2.0B, Net Income $98.1M, EPS $1.88. Year 2023: Revenue $2.0B, Net Income $228.8M, EPS $5.00. Year 2024: Revenue $2.0B, Net Income $331.3M, EPS $7.20. Year 2025: Revenue $1.7B, Net Income $227.2M, EPS $4.91.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
9.3%
Free cash flow / Revenue

DIOD Quarterly Performance

Quarterly financial performance data for DIODES INC /DEL/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $467.2M $80.2M $1.75

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

DIOD Capital Allocation

Operating Cash Flow
$215.5M
Cash generated from operations
Stock Buybacks
$33.8M
Shares repurchased (TTM)
Capital Expenditures
$78.4M
Investment in assets
Dividends
None
No dividend program

DIOD SEC Filings

Access official SEC EDGAR filings for DIODES INC /DEL/ (CIK: 0000029002)

📋 Recent SEC Filings

Date Form Document Action
Mar 11, 2026 8-K diod-20260305.htm View →
Feb 26, 2026 4 xslF345X05/ownership.xml View →
Feb 26, 2026 4 xslF345X05/ownership.xml View →
Feb 24, 2026 4 xslF345X05/ownership.xml View →
Feb 17, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about DIOD

What is the AI rating for DIOD?

DIODES INC /DEL/ (DIOD) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are DIOD's key strengths?

Claude: Exceptional liquidity position with current ratio of 3.32x and $367.2M cash. Minimal financial leverage with debt/equity of 0.01x and strong interest coverage of 15.2x.

What are the risks of investing in DIOD?

Claude: Extremely thin operating margin of 2.4% and net margin of 4.5% suggests limited profitability leverage and pricing pressure. Net income declined 4.4% YoY despite 13% revenue growth, indicating deteriorating operational efficiency.

What is DIOD's revenue and growth?

DIODES INC /DEL/ reported revenue of $1.5B.

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 $1.43.

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 rating reflects both perspectives for balanced insights.

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI