# Diodes (DIOD.US)

Canonical: https://gigainvestors.com/s/DIOD

Analysis as of: 2026-10-16T07:28:01.771Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $85.36 per share; close as of 2026-10-15.

Estimated value: low $58.01 per share, central $64.79 per share, high $73.82 per share. Buy at or below the central value $64.79 per share. Valuation as of 2026-10-16T07:28:01.771Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.52×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.13×

- FY2019: 0.16×

- FY2020: 0.11×

- FY2021: 0.15×

- FY2022: 0.20×

- FY2023: 0.15×

- FY2024: 0.04×

- FY2025: 0.02×

- LTM to Jun 2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.4%

- ROIC, second-lowest year: 2.9%

- Typical minus recent gross margin: 3.7 pp

- Typical gross margin (annual median): 35.5%

- Recent gross margin (lower of latest and 3-year median): 31.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.5%

- ROIC including acquisitions, ten-year median: 11.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.9%

- FY2018: 14.0%

- FY2019: 18.3%

- FY2020: 10.9%

- FY2021: 19.7%

- FY2022: 28.2%

- FY2023: 15.2%

- FY2024: 2.9%

- FY2025: 2.1%

- LTM to Jun 2026: 4.6%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.19×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $895M

- Net income, five-year total: $755M

- Return on incremental invested capital: 17.0%

- Working capital / revenue, annual change: 1.8 pp

- Working capital / revenue, change between three-year averages: 15.3 pp

- Working capital / revenue, final three-year average: 44.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.97×

- FY2023: 0.94×

- FY2024: 2.46×

- FY2025: 1.99×

- LTM to Jun 2026: 1.40×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.9% vs 2.9%

- Per-share earnings: 0.32 to 1.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -2.3%

- Market cap gain: $1.0B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -2.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.5%

- Per-share value change: $1.10

- Per-share value, starting three-year median: $0.32

- Per-share value, ending three-year median: $1.43

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 1.9%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $47M

- Cumulative net income, 10 years: $1.3B

- ROIC, first three-year median: 6.9%

- ROIC, last three-year median: 2.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.32

- FY2017: -$0.04

- FY2018: $2.04

- FY2019: $2.96

- FY2020: $1.88

- FY2021: $5.00

- FY2022: $7.20

- FY2023: $4.91

- FY2024: $0.95

- FY2025: $1.43

### accounting: pass

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 11.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.1%

- FY2017: -12.3%

- FY2018: -5.3%

- FY2019: -4.7%

- FY2020: -4.5%

- FY2021: -5.0%

- FY2022: -2.7%

- FY2023: -2.3%

- FY2024: -3.2%

- FY2025: -6.1%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 22% since Dec 2021 · "Diodes Inc (DIOD) (Q2 2026) Earnings Call Highlights: Record Automotive Revenue and AI-Driven ..." (finance.yahoo.com, Aug 2026) · sales +10.3%

Story as of 2026-10-16T09:58:38.411Z; price observation 2026-10-15.

Price needs cash profits to grow 4.8% a year for ten years

- 2025-08-21: Earnings call transcript: Diodes Q2 2025 beats earnings expectations ([investing.com](https://www.investing.com/news/transcripts/earnings-call-transcript-diodes-q2-2025-beats-earnings-expectations-93CH-4203398))

### Sales · FY2025–2026

sales +10.3%; source https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm; observed 2026-02-10.

- FY2017: $1.1B 

- FY2018: $1.2B 

- FY2019: $1.2B 

- FY2020: $1.2B 

- FY2021: $1.8B 

- FY2022: $2.0B 

- FY2023: $1.7B 

- FY2024: $1.3B 

- FY2025: $1.5B 

- FY2026: $1.6B 

### Gross margin · FY2026

gross margin 31.7%; source https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm; observed 2026-02-10.

- FY2017: 33.8% 

- FY2018: 35.9% 

- FY2019: 37.3% 

- FY2020: 35.1% 

- FY2021: 37.1% 

- FY2022: 41.3% 

- FY2023: 39.6% 

- FY2024: 33.2% 

- FY2025: 31.2% 

- FY2026: 31.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are USD 1.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm (filed 2026-02-10); FY2025: revenue 1482073000; grossProfit 462436000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DIOD.US: 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.

### Why customers stay

Margins ranged from 31.2% to 39.6% during 2023–25; it earns 12.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: grossProfit / revenue = 39.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2024: grossProfit / revenue = 33.2%.

- Source: https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm (filed 2026-02-10); FY2025: grossProfit / revenue = 31.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); 10-year return on capital observations [[2017,0.06890347261154899],[2018,0.14020049346817892],[2019,0.18263852564399463],[2020,0.10861907018208897],[2021,0.19677420084878233],[2022,0.2823393440122853],[2023,0.15173112177452755],[2024,0.029453767364497167],[2025,0.020672334593231045],[2026,0.04624630126552462]]; median 0.12440978182513394. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back USD 33.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2016: growth capex 0; upkeep 58549000; owner earnings 56351000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2018: growth capex 0; upkeep 87507000; owner earnings 121158000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2019: growth capex 0; upkeep 98505000; owner earnings 164329000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2020: growth capex 0; upkeep 75813000; owner earnings 130282000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2021: growth capex 18760000; upkeep 122435000; owner earnings 228763000. Growth capex / owner earnings = 0.0820062684962166.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2022: growth capex 72950937.07784104; upkeep 138777062.92215896; owner earnings 320264937.07784104. Growth capex / owner earnings = 0.22778309028599708.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: growth capex 0; upkeep 150769000; owner earnings 213743000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2024: growth capex 0; upkeep 73024000; owner earnings 108136000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm (filed 2026-02-10); FY2025: growth capex 0; upkeep 78362000; owner earnings 131526000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Dividend observations: [[2016,4869000],[2017,47875000],[2018,2694000],[2019,3818000],[2020,1033846000],[2021,2172000],[2022,12300000],[2023,100000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm (filed 2026-02-10); FY2025: cash repurchases 33814000 USD.

### Are managers owners

Insiders own 2.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DIOD.US SharesStats.PercentInsiders = 2.561 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Ten-year compound average after fade. Initial solved rate 0.05602575691694811. Price 85.36; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.47216161616161617 → FY2025 2.8337570560606715. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $20.71 per share

- 2016-11: $24.35 per share

- 2016-12: $25.67 per share

- 2017-01: $24.89 per share

- 2017-02: $23.87 per share

- 2017-03: $24.05 per share

- 2017-04: $23.39 per share

- 2017-05: $25.61 per share

- 2017-06: $24.03 per share

- 2017-07: $26.53 per share

- 2017-08: $28.14 per share

- 2017-09: $29.93 per share

- 2017-10: $34.34 per share

- 2017-11: $29.30 per share

- 2017-12: $28.67 per share

- 2018-01: $28.19 per share

- 2018-02: $30.10 per share

- 2018-03: $30.46 per share

- 2018-04: $28.55 per share

- 2018-05: $34.24 per share

- 2018-06: $34.47 per share

- 2018-07: $37.16 per share

- 2018-08: $37.92 per share

- 2018-09: $33.29 per share

- 2018-10: $30.19 per share

- 2018-11: $34.83 per share

- 2018-12: $32.26 per share

- 2019-01: $33.63 per share

- 2019-02: $40.33 per share

- 2019-03: $34.70 per share

- 2019-04: $36.42 per share

- 2019-05: $30.93 per share

- 2019-06: $36.37 per share

- 2019-07: $42.60 per share

- 2019-08: $36.55 per share

- 2019-09: $40.15 per share

- 2019-10: $46.65 per share

- 2019-11: $46.14 per share

- 2019-12: $56.37 per share

- 2020-01: $51.64 per share

- 2020-02: $44.01 per share

- 2020-03: $40.64 per share

- 2020-04: $50.89 per share

- 2020-05: $48.64 per share

- 2020-06: $50.70 per share

- 2020-07: $51.45 per share

- 2020-08: $48.86 per share

- 2020-09: $56.45 per share

- 2020-10: $57.83 per share

- 2020-11: $67.96 per share

- 2020-12: $70.50 per share

- 2021-01: $70.78 per share

- 2021-02: $78.52 per share

- 2021-03: $79.84 per share

- 2021-04: $76.81 per share

- 2021-05: $75.67 per share

- 2021-06: $79.77 per share

- 2021-07: $82.00 per share

- 2021-08: $96.83 per share

- 2021-09: $90.59 per share

- 2021-10: $96.09 per share

- 2021-11: $106.35 per share

- 2021-12: $109.81 per share

- 2022-01: $92.79 per share

- 2022-02: $89.59 per share

- 2022-03: $86.99 per share

- 2022-04: $73.03 per share

- 2022-05: $77.01 per share

- 2022-06: $64.57 per share

- 2022-07: $81.37 per share

- 2022-08: $71.17 per share

- 2022-09: $64.91 per share

- 2022-10: $71.67 per share

- 2022-11: $92.23 per share

- 2022-12: $76.14 per share

- 2023-01: $89.19 per share

- 2023-02: $91.69 per share

- 2023-03: $92.76 per share

- 2023-04: $79.70 per share

- 2023-05: $89.84 per share

- 2023-06: $92.49 per share

- 2023-07: $94.49 per share

- 2023-08: $81.85 per share

- 2023-09: $78.84 per share

- 2023-10: $65.08 per share

- 2023-11: $66.42 per share

- 2023-12: $80.52 per share

- 2024-01: $67.32 per share

- 2024-02: $67.98 per share

- 2024-03: $70.50 per share

- 2024-04: $73.01 per share

- 2024-05: $74.13 per share

- 2024-06: $71.93 per share

- 2024-07: $78.20 per share

- 2024-08: $69.69 per share

- 2024-09: $64.09 per share

- 2024-10: $58.48 per share

- 2024-11: $65.00 per share

- 2024-12: $61.67 per share

- 2025-01: $58.98 per share

- 2025-02: $49.38 per share

- 2025-03: $43.17 per share

- 2025-04: $38.40 per share

- 2025-05: $44.40 per share

- 2025-06: $52.89 per share

- 2025-07: $49.37 per share

- 2025-08: $54.44 per share

- 2025-09: $53.21 per share

- 2025-10: $53.36 per share

- 2025-11: $46.21 per share

- 2025-12: $49.34 per share

- 2026-01: $59.19 per share

- 2026-02: $68.23 per share

- 2026-03: $68.26 per share

- 2026-04: $107.15 per share

- 2026-05: $105.32 per share

- 2026-06: $109.44 per share

- 2026-07: $82.32 per share

- 2026-08: $90.80 per share

- 2026-09: $96.79 per share

- 2026-10: $85.36 per share

## Annual estimated value (USD per share)

- FY2016: low $17.57 per share, central $19.27 per share, high $21.55 per share

- FY2017: low $17.95 per share, central $19.90 per share, high $22.49 per share

- FY2018: low $23.04 per share, central $29.98 per share, high $34.39 per share

- FY2019: low $23.57 per share, central $30.82 per share, high $35.36 per share

- FY2020: low $33.29 per share, central $40.92 per share, high $46.99 per share

- FY2021: low $64.11 per share, central $88.46 per share, high $102.64 per share

- FY2022: low $81.47 per share, central $113.55 per share, high $132.23 per share

- FY2023: low $66.30 per share, central $88.11 per share, high $102.20 per share

- FY2024: low $45.38 per share, central $50.78 per share, high $57.96 per share

- FY2025: low $51.71 per share, central $57.81 per share, high $65.93 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm); period 2025-12-31, filed 2026-02-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Lee Ainslie](https://gigainvestors.com/mc): 3,919 DIOD shares; USD 429,000 reported position value; 0% of portfolio; new; quarter 2026 Q2.

# DIOD — Diodes Inc.

Held by 1 investor · USD 429,000 total · 2026 Q2 · reported price USD 109.47 (split-adjusted).
Page: https://gigainvestors.com/s/DIOD

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Lee Ainslie (https://gigainvestors.com/mc) | USD 429,000 | 0.0% | new |

## Total held by quarter

- 2026 Q2: USD 429,000 · 1 holder · USD 109.47