DIODBULLISH

Return on Equity (ROE)

4.6%

Higher than 44% of Technology sector peers

Updated 70h ago

Sector Performance

44th percentile

DIOD

4.6%

Sector Median

6.5%

Sector Avg

-1.6%

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Deep Analysis

Return on Equity (ROE) shows how much profit a company generates for each dollar of shareholder equity—a 4.6% ROE means Diodes earned $0.046 for every $1 of equity.

This result sits below the technology sector median of 6.5%, placing the firm at the 44th percentile among its peers. Comparable year-over-year data is not available, but quarter-over-quarter ROE rose 31.4% from 3.5% to 4.6%, indicating a clear upward move. The combination of a below-median level with a sharp quarterly improvement suggests a potential turnaround opportunity, though it carries risk if the trend fails to continue. This metric partially supports the overall BULLISH verdict by showing recent momentum, yet the absolute ROE remains low, meaning the stock still needs further profit efficiency gains to fully align with a bullish outlook.

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.

How does DIOD's Return on Equity (ROE) compare to its sector?

DIOD's Return on Equity (ROE) of 4.6% compares to a Technology sector median of 6.5%, placing it in the 44th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), TEAM (-19.1%).

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.