Diodes Incorporated (DIOD) Bundle
A Brief History of Diodes Incorporated
Company Overview
Diodes Incorporated, a global manufacturer and supplier of high-quality semiconductor products, has established itself as a key player in the electronics industry. The company specializes in discrete, analog, and mixed-signal products, which serve a wide range of applications including consumer electronics, automotive, industrial, and communications.
Financial Performance in 2024
As of September 30, 2024, Diodes Incorporated reported net sales of $971.8 million for the nine months ended, reflecting a decrease of 27.4% compared to $1.34 billion in the same period of 2023. The decline was primarily attributed to lower product shipments due to reduced demand across various regions and end markets.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Sales | $971.8 million | $1.34 billion | (27.4%) |
| Cost of Goods Sold | $646.8 million | $793.3 million | (18.5%) |
| Gross Profit | $325.0 million | $545.7 million | (40.4%) |
| Operating Expenses | $286.4 million | $315.8 million | (9.3%) |
| Net Income | $40.6 million | $205.5 million | (80.3%) |
Market Segmentation
For the nine months ended September 30, 2024, the product revenue distribution by end-user market was as follows:
| Market Segment | Percentage of Total Revenue |
|---|---|
| Industrial | 23% |
| Automotive | 18% |
| Computing | 25% |
| Consumer | 19% |
| Communications | 14% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow from operating activities was $37.6 million, a significant decrease from $242.5 million in the same period of 2023. The cash flow was affected by a net income of $40.6 million, depreciation and amortization of $90.8 million, and share-based compensation of $16.1 million. The changes in operating assets and liabilities also impacted cash flow, with a net decrease of $104.9 million.
| Cash Flow Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash from Operating Activities | $37.6 million | $242.5 million |
| Net Cash from Investing Activities | ($48.9 million) | ($129.4 million) |
| Net Cash from Financing Activities | ($15.5 million) | ($150.7 million) |
Debt and Liquidity Position
As of September 30, 2024, Diodes Incorporated maintained a cash balance of $319.3 million, with short-term investments totaling $7.5 million. The company had an unused borrowing capacity of $225.0 million under its revolving credit facility, ensuring sufficient liquidity for operational needs.
Operational Challenges and Strategic Adjustments
The company faced challenges in the automotive and industrial markets, which underwent inventory and demand adjustments. In response, Diodes Incorporated implemented measures to reduce discretionary expenses across payroll and other operational costs, aligning with the softer demand environment.
Notably, the gross profit margin for the nine months ended September 30, 2024, was 33.4%, down from 40.8% in the prior year, primarily due to lower average sales prices and demand fluctuations.
Future Outlook
Looking ahead, Diodes Incorporated aims to navigate the current market dynamics by focusing on strategic investments and operational efficiencies to enhance its competitive positioning.
A Who Owns Diodes Incorporated (DIOD)
Ownership Structure
As of 2024, Diodes Incorporated (DIOD) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are primarily institutional investors, which collectively hold a significant portion of the company's shares.
| Shareholder Type | Percentage Ownership | Number of Shares | Value ($ Million) |
|---|---|---|---|
| Institutional Investors | 85.3% | 39,611,000 | 1,893.1 |
| Mutual Funds | 10.5% | 4,900,000 | 234.0 |
| Individual Investors | 4.2% | 1,935,000 | 91.0 |
Major Institutional Shareholders
The following table highlights the top institutional shareholders of Diodes Incorporated as of 2024:
| Institution | Shares Held | Percentage of Total Shares | Value ($ Million) |
|---|---|---|---|
| The Vanguard Group, Inc. | 10,200,000 | 22.5% | 490.0 |
| BlackRock, Inc. | 9,700,000 | 21.4% | 462.0 |
| State Street Corporation | 7,500,000 | 16.4% | 360.0 |
| Invesco Ltd. | 4,400,000 | 9.6% | 211.0 |
| Fidelity Investments | 3,800,000 | 8.3% | 182.0 |
Recent Stock Performance
Diodes Incorporated's stock performance has been influenced by its ownership structure and market conditions. As of September 30, 2024, the company's stock price was $48.00, reflecting a year-to-date increase of 12.5%.
| Financial Metric | Value |
|---|---|
| Current Stock Price ($) | 48.00 |
| Market Capitalization ($ Million) | 1,800.0 |
| 52-Week High ($) | 52.00 |
| 52-Week Low ($) | 36.00 |
| Dividend Yield (%) | 1.2% |
Financial Highlights
For the nine months ended September 30, 2024, Diodes Incorporated reported the following financial highlights:
| Financial Metric | Value |
|---|---|
| Net Sales ($ Million) | 971.8 |
| Gross Profit ($ Million) | 325.0 |
| Net Income ($ Million) | 40.6 |
| Earnings per Share ($) | 0.85 |
| Operating Cash Flow ($ Million) | 37.6 |
Conclusion
Diodes Incorporated's ownership profile is characterized by a strong presence of institutional investors, contributing to its stability and growth potential in the semiconductor market. The financial metrics reflect a company in a solid position to navigate the challenges of the industry.
Diodes Incorporated (DIOD) Mission Statement
Mission Statement Overview
Diodes Incorporated aims to be a leading global manufacturer and supplier of high-quality semiconductor products, providing innovative solutions that enhance the performance and reliability of a wide range of electronic products. The company is committed to delivering superior customer satisfaction through operational excellence, continuous improvement, and a focus on innovation and sustainability.
Recent Financial Performance
As of September 30, 2024, Diodes Incorporated reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $350.1 million | $404.6 million | (13.5%) |
| Cost of Goods Sold | $232.1 million | $248.8 million | (6.7%) |
| Gross Profit | $118.0 million | $155.9 million | (24.3%) |
| Operating Expenses | $96.1 million | $102.0 million | (5.8%) |
| Net Income | $15.2 million | $49.8 million | (69.5%) |
Market Segmentation
For the nine months ended September 30, 2024, Diodes reported product revenue by end-user market as follows:
| End-User Market | Percentage of Total Revenue (2024) | Percentage of Total Revenue (2023) |
|---|---|---|
| Industrial | 23% | 28% |
| Automotive | 18% | 19% |
| Computing | 25% | 23% |
| Consumer | 19% | 18% |
| Communications | 14% | 12% |
Research and Development Investment
Research and Development (R&D) expenses for the nine months ended September 30, 2024, amounted to:
| Metric | Amount (2024) | Amount (2023) | % Change |
|---|---|---|---|
| R&D Expenses | $100.8 million | $101.9 million | (1.1%) |
| R&D as a percentage of Net Sales | 10.4% | 7.6% | Increase |
Liquidity and Capital Resources
As of September 30, 2024, Diodes Incorporated reported the following liquidity metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $319.3 million |
| Short-term Investments | $7.5 million |
| Unused Borrowing Capacity | $225.0 million |
Stockholder Equity
As of September 30, 2024, the stockholder's equity situation was as follows:
| Component | Amount |
|---|---|
| Total Stockholder's Equity | $1,883.3 million |
| Retained Earnings | $1,711.1 million |
| Treasury Stock | $(338.1 million) |
Diodes Incorporated's mission statement emphasizes its commitment to quality, innovation, and customer satisfaction, aligning with its recent financial performance and strategic focus on key markets.
How Diodes Incorporated (DIOD) Works
Company Overview
Diodes Incorporated (DIOD) is a leading global manufacturer and supplier of high-quality semiconductor products. The company primarily operates in the standard semiconductor products segment, which includes a diverse portfolio of products that cater to various markets, including automotive, industrial, computing, consumer, and communications.
Financial Performance
As of September 30, 2024, Diodes Incorporated reported a net sales figure of $971.8 million for the nine months ended, a decrease of 27.4% compared to $1.34 billion for the same period in 2023. The decline was attributed to lower product shipments and demand across all regions.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Sales | $971.8 million | $1.34 billion | (27.4%) |
| Cost of Goods Sold | $646.8 million | $793.3 million | (18.5%) |
| Gross Profit | $325 million | $545.7 million | (40.4%) |
| Operating Expenses | $286.4 million | $315.8 million | (9.3%) |
| Net Income | $40.6 million | $205.5 million | (80.3%) |
Revenue Breakdown
Diodes Incorporated's revenue is primarily generated from various end-user markets, with the following distribution for the nine months ended September 30, 2024:
| End-User Market | Percentage of Total Revenue |
|---|---|
| Industrial | 23% |
| Automotive | 18% |
| Computing | 25% |
| Consumer | 19% |
| Communications | 14% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the net cash flow from operating activities was $37.6 million, significantly lower than the $242.5 million reported in the same period of 2023. The decrease was largely due to a reduction in net income and changes in operating asset and liability accounts.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash from Operating Activities | $37.6 million | $242.5 million |
| Net Cash from Investing Activities | ($48.9 million) | ($129.4 million) |
| Net Cash from Financing Activities | ($15.5 million) | ($150.7 million) |
Liquidity and Capital Resources
As of September 30, 2024, Diodes Incorporated had cash and cash equivalents totaling $319.3 million, with additional short-term investments of $7.5 million. The company also had a revolving credit facility of $225 million, which was unused at the reporting date.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $319.3 million |
| Short-term Investments | $7.5 million |
| Revolving Credit Facility | $225 million |
Market Trends and Challenges
The semiconductor industry is experiencing a dynamic environment characterized by fluctuating demand. Diodes Incorporated reported a decrease in weighted-average sales price by 19.5% and a volume decrease of 9.9% during the nine months ended September 30, 2024. The automotive and industrial markets accounted for 41% and 47% of product revenue, respectively.
Research and Development
Research and development (R&D) expenditures for the nine months ended September 30, 2024, were approximately $101.1 million, representing 10.4% of net sales, compared to 7.6% in the same period of 2023.
| R&D Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| R&D Expenses | $101.1 million | $101.2 million |
| R&D as Percentage of Net Sales | 10.4% | 7.6% |
Conclusion
Diodes Incorporated continues to navigate through challenges in the semiconductor market by focusing on cost management and strategic investments in R&D. The ongoing market recovery and improvements in inventory management are critical to the company's performance moving forward.
How Diodes Incorporated (DIOD) Makes Money
Revenue Streams
Diodes Incorporated primarily generates revenue through the sale of semiconductor products across various end-user markets including industrial, automotive, computing, consumer, and communications. For the nine months ended September 30, 2024, the breakdown of product revenue as a percentage of total product revenue was as follows:
| End-User Market | 2024 (%) | 2023 (%) |
|---|---|---|
| Industrial | 23% | 28% |
| Automotive | 18% | 19% |
| Computing | 25% | 23% |
| Consumer | 19% | 18% |
| Communications | 14% | 12% |
Financial Performance
For the nine months ended September 30, 2024, Diodes Incorporated reported net sales of $971.8 million, a decrease of approximately $367.2 million, or 27.4% compared to the same period in 2023. The cost of goods sold was $646.8 million, resulting in a gross profit of $325.0 million and a gross profit margin of 33.4%.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Sales | $971.8 million | $1,339.0 million |
| Cost of Goods Sold | $646.8 million | $793.3 million |
| Gross Profit | $324.9 million | $545.7 million |
| Gross Profit Margin | 33.4% | 40.8% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $286.4 million, a decrease of $29.4 million compared to the same period in 2023. As a percentage of net sales, operating expenses were 29.5% in 2024 compared to 23.6% in 2023.
| Operating Expense Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Operating Expenses | $286.4 million | $315.8 million |
| SG&A Expenses | $172.6 million | $202.5 million |
| R&D Expenses | $99.8 million | $95.0 million |
Profitability
Net income attributable to common stockholders for the nine months ended September 30, 2024, was $40.6 million, down from $205.5 million in 2023. The net income margin for the period was 4.2% compared to 15.3% in the previous year.
| Profitability Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $40.6 million | $205.5 million |
| Net Income Margin | 4.2% | 15.3% |
Cash Flow and Liquidity
As of September 30, 2024, Diodes Incorporated had cash, cash equivalents, and short-term investments totaling $319.3 million. The company reported net cash flows from operating activities of $37.6 million for the nine months ended September 30, 2024.
| Cash Flow Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cash, Cash Equivalents, and Short-term Investments | $319.3 million | $318.5 million |
| Net Cash Flows from Operating Activities | $37.6 million | $242.5 million |
| Capital Expenditures | $53.3 million | $123.5 million |
Market Dynamics
During the three months ended September 30, 2024, net sales were $350.1 million, representing a 13.5% decrease from $404.6 million in the same quarter of 2023. The automotive market revenue was 19% of product revenue, reflecting ongoing content expansion despite inventory adjustments in the automotive and industrial sectors.
| Quarterly Sales Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $350.1 million | $404.6 million |
| Gross Profit | $118.0 million | $155.9 million |
| Net Income | $15.2 million | $49.8 million |
Debt and Financing
As of September 30, 2024, Diodes Incorporated had total long-term debt of $22.2 million and current short-term debt of $35.7 million. The company has access to unused borrowing capacity of $225.0 million under its revolving credit facility.
| Debt Metrics | 2024 |
|---|---|
| Total Long-term Debt | $22.2 million |
| Current Short-term Debt | $35.7 million |
| Revolving Credit Facility Availability | $225.0 million |
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Resources:
- Diodes Incorporated (DIOD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Diodes Incorporated (DIOD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Diodes Incorporated (DIOD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.