Diodes Inc: The Growth Story Is (Still) Intact

James Long
1.97K Followers

Summary

  • DIOD is a company that averaged double-digit CAGR earnings-per-share growth over the past 20 years; it is still expected to grow EPS between 18.5% (FactSet) & 40.09% (S&P Market Intelligence).
  • DIOD's products target end-markets with huge TAM and management have been making strategic moves to capitalize on the fastest-growing automotive market.
  • DIOD's good fortune has ridden on strong secular tailwinds and that is expected to continue. The growth story is therefore (still) intact.

Various electronic components on detail of printed circuit board. Electrotechnics

Ladislav Kubeš/iStock via Getty Images

Thesis

DIODE Inc (NASDAQ:DIOD) is a semiconductor company that has been riding the secular tailwinds of the recent semiconductor boom. It produces over 29,000 products, serving over 50,000 customers, and these products are used across multiple

This article was written by

1.97K Followers
I am a conservative yet opportunistic value investor who has been investing since 2005. I am fact-driven, preferring to let financial data inform me of a company's health, followed by qualitative analysis to fill in the gaps to paint a holistic picture of a company's growth prospects.My work is published on two platforms, Seeking Alpha and FAST Graphs  (https://fastgraphs.com/blog/category/research-articles/).I appreciate everyone who reads my research and especially those who drop me questions and comments and follow me on Seeking Alpha. If you would like to engage in further discussions, you can either message me directly in Seeking Alpha, or on Twitter (https://twitter.com/jamessciteacher).

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DIOD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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