Last Updated: 17 Sep 2024
Executive Summary
Diodes Incorporated (DIOD) is a leading global manufacturer of discrete, logic, analog, and mixed-signal semiconductors. The company has a strong financial position, with a market capitalization of $2.88 billion and an EBITDA of $232.33 million. DIOD's trailing P/E ratio of 29.88 and PEG ratio of 0.88 indicate that the stock is fairly valued. The latest stock price of $60.36 is below the analyst target price of $77.25, suggesting that the stock has potential for upside.
Company Overview
Diodes Incorporated was founded in 1969 and is headquartered in Plano, Texas. The company designs, manufactures, and supplies a wide range of semiconductor products for use in a variety of applications, including consumer electronics, automotive, industrial, and communications. Diodes Incorporated has a global presence, with manufacturing facilities in the United States, Europe, and Asia.
Fundamental Analysis
Diodes Incorporated's financial performance has been solid in recent years. The company's revenue has grown from $1.15 billion in 2018 to $1.35 billion in 2022. Net income has also increased, from $150.7 million in 2018 to $206.9 million in 2022. Diodes Incorporated's profit margin is 7.12%, and its operating margin is 3.71%. The company's return on assets is 2.51%, and its return on equity is 5.6%.
Technical Analysis
Diodes Incorporated's stock price has traded in a range between $58.96 and $86.74 over the past 52 weeks. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 45.6, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, Diodes Incorporated's stock price is likely to be influenced by the overall market sentiment and the company's financial performance. If the market continues to decline, Diodes Incorporated's stock price could fall further. However, if the company reports strong financial results, the stock price could rebound.
Long Term Outlook
In the long term, Diodes Incorporated's stock price is likely to be driven by the growth of the semiconductor industry. The semiconductor industry is expected to grow at a CAGR of 5.1% over the next five years. This growth is expected to be driven by the increasing demand for semiconductors in a variety of applications, including consumer electronics, automotive, and industrial.
Analyst Recommendations
The majority of analysts have a "buy" rating on Diodes Incorporated's stock. The average analyst target price is $77.25, which represents a potential upside of 28.1% from the current stock price.
