Diodes Inc (DIOD) stock analysis

P/E above its 5-year median

Diodes's P/E of 36.7 is above its own 5-year median of 21.6.

P/E above the industry

Diodes's P/E of 36.7 is above the Electronic Components and Accessories median of 34.8.

EV/EBITDA above its 5-year median

Diodes's EV/EBITDA of 28.6 is above its 5-year median of 18.2.

P/B below the industry

Diodes's price-to-book of 2.16 is below the Electronic Components and Accessories median of 3.49.

Trading above fair value

The share price of $91.27 is above our fair value estimate of $74.88.

Margin of safety under 20%

The price is 21.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -9.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -41.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 80.0% over the last twelve months, against a 5-year average of -7.6% a year.

Growing faster than the industry

Revenue grew 24.2% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (third quarter of 2026 revenue, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 33.3% over the last twelve months, against 31.6% a year earlier.

Return on equity under 15%

Return on equity was 6.0% over the last twelve months and averaged 13.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.4%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Diodes's return on equity of 6.0% is above the Electronic Components and Accessories median of 4.8%.

Earnings shrank over 5 years

Net income shrank 7.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.5% over the last twelve months, against a 5-year average of 10.1%.

Net margin above the industry

Diodes's net margin of 6.5% is above the Electronic Components and Accessories median of 2.9%.

Low debt

Debt is 0.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 2.3% five years ago to 0.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 17063% of total debt.

Interest well covered

Operating income covers interest expense 41.4 times.

Short-term assets cover short-term debts

Current assets are 3.07 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.48; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Diodes has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.