DIODBULLISH

Gross Margin

31.8%

Higher than 10% of Technology sector peers

Updated 70h ago

Sector Performance

10th percentile

DIOD

31.8%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after covering the cost of goods sold, so a 31.8% margin means Diodes keeps $0.318 of every sales dollar before other expenses.

That figure sits far below the technology sector median of 65.2%, placing the company at the 10th percentile among its peers — meaning 90% of sector competitors have a higher gross margin. The trend data is not available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and only a single historical value of 31.8% is reported, so no trend direction can be assessed. Because the current margin is very low relative to peers and there is no trend information, the risk is that the company may face sustained cost pressure or pricing weakness, but the absence of a trend also leaves an opportunity for improvement unnoticed. This metric directly contradicts the overall BULLISH verdict, as a bottom-decile gross margin typically signals weaker profitability and competitive disadvantage that would normally warrant caution rather than optimism.

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.

How does DIOD's Gross Margin compare to its sector?

DIOD's Gross Margin of 31.8% compares to a Technology sector median of 65.2%, placing it in the 10th percentile.

Who are DIOD's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: FORM (47.9%), LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%).

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.