| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | 44.9x | 17.3x | Bottom tier | |
Growth | 50 | 17.8% | 7.1% | Around median | |
Quality | 51 | 3.1% | 4.5% | Around median | |
Safety | 92 | — | 2.6x | Top tier | |
Capital Return | 46 | 0.00% | 0.06% | Around median | |
Momentum | 52 | 68.4% | -1.6% | Around median | |
Sentiment | 55 | 2 | 3 | Around median |
The floor: what the company is worth if growth stopped today
76% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Diodes Incorporated designs and manufactures analog semiconductor, power, and mixed-signal solutions, selling its products to the computing, automotive, industrial, consumer, and communications markets. Its opportunities in AI infrastructure include server motherboards, power networks, network switches, storage, and high-speed optical interconnects, while its products include timing generators, power management, protection, sensing, voltage translation, and networking. In fiscal Q2 2026, computing accounted for 28% of product revenue, industrial 23%, automotive 21%, consumer 17%, and communications 11%.
Fiscal Q2 2026 revenue was approximately $445.5 million, up 22% from $366.2 million in the comparable period and growing 10% sequentially from $405.5 million in fiscal Q1 2026. Gross profit increased to $147.6 million, and gross margin reached 33.1% versus 31.5% in the comparable period and 31.8% in the previous quarter. GAAP net income was $46.6 million, or $1.00 per diluted share, but the result included a $20 million unrealized investment gain; adjusted net income was $32.5 million, and adjusted earnings per share were $0.70.
The automotive business reached a record level and represented 21% of product revenue in fiscal Q2 2026, after its revenue grew 15% sequentially and more than 37% year over year. Computing increased 18% sequentially and 33% year over year, while industrial grew 5% sequentially and more than 24% year over year. Geographically, 79% of revenue came from Asia, 12% from Europe, and 9% from North America, illustrating the sales mix's heavy dependence on Asia.
The analyst consensus is “Buy,” with a consensus target of $192, and there is no difference between the high and low estimates because both are $192. This target is approximately 52% above the 52-week range high of $125.99, reflecting strong growth assumptions relative to the stock's trading history, while the data do not permit a reliable comparison based on the price-to-earnings ratio because it is unavailable. Justifying this elevated target depends on achieving fiscal Q3 2026 guidance, continued margin expansion, and the conversion of AI demand into recurring operating profits.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Fiscal Q2 2026 revenue increased 22% year over year and 10% sequentially to $445.5 million. Computing led this momentum with 33% year-over-year growth, while automotive grew by more than 37% and industrial by more than 24%. For fiscal Q3 2026, management expects revenue of approximately $510 million and adjusted earnings per share of $1.05.
Diodes sells components used in server motherboards, power networks, network switches, storage, and high-speed optical interconnects. The company estimates the total content opportunity across these applications at approximately $267 per platform, compared with approximately $109 in AI servers alone. In fiscal Q2 2026, the computing business achieved sequential growth of 18% and year-over-year growth of 33%, with new timing products entering the latest server platforms.
ElevATE is a fabless semiconductor company specializing in integrated circuits for automated test equipment. Management said on the August 5, 2026 call that the proposed transaction could add approximately $50 million in revenue during the first 12 months after closing. It also expects compound annual growth exceeding 20% over the following four years and gross margins significantly above the Diodes average, with a target market that management said exceeds $1 billion.
Automated analysis for informational purposes only — not investment advice.
Gross profit was $147.6 million, or 33.1% of revenue, in fiscal Q2 2026. This compares with a margin of 31.5% in the comparable period and 31.8% in fiscal Q1 2026, representing a year-over-year improvement of 160 basis points. Management expects a gross margin of 35%, with a tolerance of one percentage point, in fiscal Q3 2026.
Asia accounted for 79% of fiscal Q2 2026 revenue, representing high geographic concentration. Management also acknowledged pockets of supply constraints, while inventory reached $504.6 million, or approximately 152 days, at the end of the quarter. In addition, communications revenue declined 7% sequentially and approximately 3% year over year, amid weakness in China's smartphone market and memory shortages that pressured the consumer market.
Total cash and cash equivalents, restricted cash, and short-term investments were approximately $442 million at the end of fiscal Q2 2026, versus total debt of approximately $40 million. Operations generated $68.5 million in cash flow, while free cash flow was $34.8 million after capital expenditures of $33.6 million. The company also spent $10 million under its share repurchase program during the quarter.