Is DIODES INC /DEL/ (DIOD) Halal?

NASDAQ Technology United States $3.2B
✓ HALAL
Confidence: 95/100
DIODES INC /DEL/ (DIOD) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 3.3% against the AAOIFI threshold of 30%, DIODES INC /DEL/ comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 3.3%
/ 30%
13.1%
/ 30%
10.7%
/ 30%
1.91%
/ 5%
✓ HALAL
DJIM 3.3%
/ 33%
13.1%
/ 33%
10.7%
/ 33%
1.91%
/ 5%
✓ HALAL
MSCI 3.9%
/ 33%
15.4%
/ 33%
12.5%
/ 33%
1.91%
/ 5%
✓ HALAL
S&P 3.3%
/ 33%
13.1%
/ 33%
10.7%
/ 33%
1.91%
/ 5%
✓ HALAL
FTSE 3.9%
/ 33%
15.4%
/ 33%
12.5%
/ 50%
1.91%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
47.7
Forward: 20.5
EPS
$1.43
P/B Ratio
1.7
EV/EBITDA
16.1
EV: $2.9B
Revenue
$1.5B
Growth: 15.4%
Beta
1.6
High volatility
Current Ratio
3.3

Profitability

Gross Margin 31.2%
Operating Margin 3.4%
Net Margin 4.5%
Return on Equity (ROE) 3.6%
Return on Assets (ROA) 0.9%

Cash Flow & Balance Sheet

Operating Cash Flow$216M
Free Cash Flow$137M
Total Debt$96M
Debt-to-Equity4.9
Current Ratio3.3
Total Assets$2.4B

Price & Trading

Last Close$71.00
50-Day MA$64.58
200-Day MA$55.26
Avg Volume410K
Beta1.6
52-Week Range
$32.93
$81.71

About DIODES INC /DEL/ (DIOD)

CEO
Mr. Gary Yu
Employees
7,989
Sector
Technology
Industry
Semiconductors
Country
United States
Exchange
NASDAQ
Market Cap
$3.2B
Currency
USD

Diodes Incorporated, together with its subsidiaries, provides semiconductor products in Asia, the Americas, and Europe. The company offers MOSFET and SiC MOSFET discrete semiconductor products; data line protection, power line protection, thyrister, USB Type-C protection, and transient voltage suppressor protection devices; Schottky diodes, small signal switching diodes, Zener diodes, and SiC diodes; and bridges, super barrier rectifiers, Schottky rectifiers, Schottky bridge rectifiers, and fast and ultra-fast rectifiers. It also provides avalanche transistors, gate driver transistors, and pre-bias transistors; power management devices, such as AC-DC and DC-DC converters, digital isolators and isolated gate drivers, USB power switches, low dropout, photocoupler, and linear voltage regulators; standard linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including Hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products comprising high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs, and packet switches; low-voltage complementary metal-oxide-semiconductor (CMOS) and CMOS devices, as well as ultra-low power CMOS logic and analog switches; and multichip products, co-packaged discrete, analog, and mixed-signal silicon in miniature packages. Further, it provides silicon and silicon epitaxial wafers; frequency control products; and contact image sensors. The company serves industrial, automotive, computing, consumer, and communications end-markets through direct sales, marketing personnel, independent sales representatives, and distributors. Diodes Incorporated was incorporated in 1959 and is headquartered in Plano, Texas.

Purification Calculator

As a halal stock with 1.91% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is DIODES INC /DEL/ (DIOD) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), DIODES INC /DEL/ is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is DIODES INC /DEL/'s debt ratio?

DIODES INC /DEL/'s debt ratio is 3.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 3.9%.

Does DIODES INC /DEL/ require dividend purification?

Yes, DIODES INC /DEL/ has an impermissible income ratio of 1.91%, which means 1.91% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are DIODES INC /DEL/'s key financial metrics?

DIODES INC /DEL/ has a market capitalization of $3.2B, trailing P/E ratio of 47.7, and revenue of $1.5B. The company maintains a gross margin of 31.2% and a net margin of 4.5%. Return on equity stands at 3.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.