DIODNEUTRAL

DIOD Return on Equity (ROE) Analysis

4.7%

Updated 83h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and DIOD’s current 4.7% means it earns $0.047 for every $1 of equity.

Sector Performance

22th percentile

DIOD

4.7%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

4.6%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and DIOD’s current 4.7% means it earns $0.047 for every $1 of equity.

That is far below the sector median of 13.4%, placing DIOD in the 21st percentile among its peers. The trend is largely unknown: year-over-year change is not available, but the quarter-over-quarter change is +2.2%, moving from 4.6% to 4.7%. The low ROE relative to peers signals below-average profitability per unit of equity, while the small quarterly uptick offers mild near-term improvement. The lack of a longer trend makes it harder to judge whether this is a lasting shift or a one-off gain. This metric contradicts a NEUTRAL verdict because a 21st-percentile ROE suggests elevated risk of capital being used less efficiently than competitors. Overall, the low profitability level outweighs the slight quarterly gain, so the metric leans negative rather than neutral.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about DIOD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are DIOD's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.