DIODNEUTRAL

DIOD Gross Margin Analysis

33.1%

Updated 83h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so 33.1% means DIOD retains about one-third of each sales dollar before other expenses.

Sector Performance

26th percentile

DIOD

33.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

31.8%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so 33.1% means DIOD retains about one-third of each sales dollar before other expenses.

That is well below the sector median of 46.4%, placing DIOD at the 27th percentile among peers, meaning most comparable companies are more profitable at the gross margin level. The trend is mostly unavailable: year-over-year change is N/A, but quarter-over-quarter change is +4.1%, with the most recent historical values being 33.1% and then 31.8% in the prior quarter. The mix of a sub-median margin and only a single quarterly improvement offers limited evidence of a lasting turnaround, so the risk/opportunity profile stays unclear. Because the margin level is weak relative to peers and the trend lacks a fuller track record, this metric leans toward caution. Overall, it does not strongly support or overturn the NEUTRAL verdict, but it does temper any bullish case.

Frequently Asked Questions

What does the Gross Margin tell investors about DIOD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are DIOD's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.