Diodes Incorporated Common Stock (DIOD)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I start with business quality. Diodes makes discrete semiconductors and protection components—necessary but cyclical. The balance sheet is a genuine strength: debt-to-equity of 0.04, an Altman Z-score of 6.12 and a perfect Piotroski F-score of 9/9, all FairStock calculations. It generated $142.5M in trailing free cash flow, a 3.4% FCF yield. Growth is improving from a low base. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $445.5M and net income was $46.6M, or $1.00 per diluted share. That compares with fiscal Q2 2025, when revenue was $366.2M and net income was $46.1M, or $0.99 per diluted share. However, fiscal 2025 net income was only $66.1M, or $1.43 per share, versus fiscal 2023's $227.2M, or $4.91 per share—a reminder of how violently these earnings can swing. At the 2026-10-13 close of $90.72, FairStock calculates a P/E of 48.77, P/B of 2.13, ROE of 4.68% and ROCE of 1.95%. The Graham Number is $42.20, implying a margin of safety of negative 114.98%, so the price already assumes a strong recovery. A 3.4% FCF yield is not enough compensation for that cyclicality. The Lynch category is cyclical semiconductors, and beta is 1.90. I would want a wider discount before calling this a compelling value.

In plain English: Diodes makes small semiconductor parts used in electronics, such as diodes and power-protection chips. The business has a strong balance sheet and sales are improving, but profits are still far below their 2023 peak. At the current stock price, investors are paying a high price compared with current earnings and accounting value, so the shares look expensive unless profits recover strongly.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer