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DIOD, Diodes

Semiconductors asset-light Cyclical

Diodes Incorporated, together with its subsidiaries), delivers high-quality semiconductor products to the world's leading companies in the automotive, industrial, computing, consumer electronics, and communications markets.

We leverage our expanded product portfolio of analog and power solutions combined with a flexible hybrid manufacturing model that meet customers' needs.

Our broad range of application-specific products, delivered through a total solutions sales approach and supported by global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-growth markets.

Latest annual: FY2025 10-K

DIOD · Diodes

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.5B

+13.0% YoY · 4% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.6B 5-yr avg $1.7B

Gross margin 31% 5-yr avg 37%

Operating margin 3.5% 5-yr avg 11.4%

ROIC 3% 5-yr avg 12%

Owner-earnings margin 8% 5-yr avg 10%

Free cash flow margin 8% 5-yr avg 8%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 35% and operating margin about 11% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from 2.4% to 20% — on a steadier 35% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Inventory runs near 21% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on process leadership and the capex cycle. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 11%). The steadier read is owner earnings: roughly 9% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Asia is 61% of revenue, so this is largely a single-region business.

Revenue by geography, FY2025

Asia61%$901M
Americas32%$478M
Europe7%$103M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$942M	$1.1B	$1.2B	$1.2B	$1.2B	$1.8B	$2.0B	$1.7B	$1.3B	$1.5B	$1.6B	RevenueRevenue
30%	34%	36%	37%	35%	37%	41%	40%	33%	31%	31%	Gross marginGross mgn
17%	16%	15%	15%	15%	14%	14%	16%	18%	16%	16%	SG&A / revenueSG&A/rev
7%	7%	7%	7%	8%	7%	6%	8%	10%	11%	11%	R&D / revenueR&D/rev
$38M	$79M	$154M	$201M	$134M	$276M	$408M	$251M	$50M	$35M	$54M	Operating incomeOp. inc.
4.0%	7.5%	12.7%	16.1%	10.9%	15.3%	20.4%	15.1%	3.8%	2.4%	3.5%	Operating marginOp. mgn
$16M	($2M)	$104M	$153M	$98M	$229M	$331M	$227M	$44M	$66M	$86M	Net incomeNet inc.
29%	—	30%	22%	18%	26%	15%	17%	21%	18%	18%	Effective tax rateTax rate
											Cash flow & returns
$125M	$181M	$186M	$230M	$187M	$339M	$393M	$281M	$119M	$216M	$223M	Operating cash flowOp. cash
$78M	$77M	$86M	$92M	$92M	$106M	$112M	$122M	$121M	$122M	$123M	DepreciationDeprec.
$16M	$87M	($25M)	($36M)	($28M)	($30M)	($87M)	($99M)	($68M)	$2M	($12M)	Working capital & otherWC & other
$59M	$111M	$88M	$99M	$76M	$141M	$212M	$151M	$73M	$78M	$94M	CapexCapex
6.2%	10.5%	7.2%	7.9%	6.2%	7.8%	10.6%	9.1%	5.6%	5.3%	6.1%	Capex / revenueCapex/rev
$66M	$104M	$98M	$131M	$111M	$232M	$280M	$130M	$46M	$137M	$129M	Owner earningsOwner earn.
7.0%	9.9%	8.1%	10.5%	9.1%	12.9%	14.0%	7.8%	3.5%	9.3%	8.3%	Owner earnings marginOE mgn
$66M	$70M	$98M	$131M	$111M	$197M	$181M	$130M	$46M	$137M	$129M	Free cash flowFCF
7.0%	6.6%	8.1%	10.5%	9.1%	10.9%	9.0%	7.8%	3.5%	9.3%	8.3%	Free cash flow marginFCF mgn
—	—	$41K	$33M	$25M	$157K	$84M	$3K	$57M	$5M	$745K	AcquisitionsAcquis.
$18M	$9M	—	—	$297M	$0	$0	$0	$0	$34M	—	BuybacksBuybacks
3%	4%	12%	16%	11%	17%	26%	14%	3%	2%	3%	ROICROIC
2%	-0%	11%	14%	10%	18%	22%	13%	2%	4%	5%	Return on equityROE
2%	−0%	11%	14%	10%	18%	22%	13%	2%	4%	5%	Retained to equityRetained/eq
											Balance sheet
$278M	$208M	$249M	$263M	$274M	$370M	$344M	$326M	$316M	$377M	$404M	Cash & investmentsCash+inv
$217M	$200M	$228M	$260M	$320M	$358M	$369M	$372M	$326M	$307M	$304M	ReceivablesReceiv.
$193M	$217M	$215M	$236M	$307M	$349M	$360M	$390M	$475M	$472M	$493M	InventoryInvent.
$88M	$108M	$118M	$122M	$168M	$221M	$160M	$158M	$134M	$149M	$169M	Accounts payablePayables
$323M	$309M	$326M	$375M	$459M	$486M	$569M	$603M	$667M	$629M	$628M	Operating working capitalOper. WC
$733M	$662M	$735M	$810M	$1.0B	$1.2B	$1.2B	$1.2B	$1.2B	$1.3B	$1.3B	Current assetsCur. assets
$185M	$247M	$254M	$285M	$510M	$471M	$433M	$393M	$376M	$378M	$411M	Current liabilitiesCur. liab.
4.0×	2.7×	2.9×	2.8×	2.0×	2.5×	2.7×	3.0×	3.3×	3.3×	3.2×	Current ratioCurr. ratio
$129M	$134M	$132M	$141M	$158M	$150M	$145M	$147M	$182M	$183M	$182M	GoodwillGoodwill
$1.5B	$1.5B	$1.5B	$1.6B	$2.0B	$2.2B	$2.3B	$2.4B	$2.4B	$2.4B	$2.5B	Total assetsAssets
$444M	$291M	$243M	$132M	$334M	$302M	$152M	$26M	$22M	$27M	$230M	Total debtDebt
$167M	$82M	($6M)	($131M)	$60M	($68M)	($192M)	($300M)	($294M)	($350M)	($174M)	Net debt / (cash)Net debt
2.9×	5.9×	15.6×	25.4×	11.5×	36.8×	49.1×	44.0×	21.6×	12.8×	18.0×	Interest coverageInt. cov.
$776M	$832M	$931M	$1.1B	$964M	$1.2B	$1.5B	$1.7B	$1.8B	$1.9B	$1.9B	Shareholders’ equityEquity
1.5%	1.8%	1.7%	1.6%	2.1%	1.8%	1.8%	1.9%	1.7%	1.7%	1.7%	Stock comp / revenueSBC/rev
											Per share
49.8M	48.8M	50.9M	51.9M	52.1M	45.8M	46.0M	46.3M	46.4M	46.4M	46.1M	Shares out (diluted)Shares
$18.92	$21.59	$23.83	$24.09	$23.58	$39.43	$43.46	$35.88	$28.25	$31.93	$33.71	Revenue / shareRev/sh
$0.32	$-0.04	$2.04	$2.96	$1.88	$5.00	$7.20	$4.91	$0.95	$1.43	$1.85	EPS (diluted)EPS
$1.33	$2.14	$1.93	$2.53	$2.14	$5.07	$6.09	$2.81	$1.00	$2.95	$2.79	Owner earnings / shareOE/sh
$1.33	$1.43	$1.93	$2.53	$2.14	$4.31	$3.93	$2.81	$1.00	$2.95	$2.79	Free cash flow / shareFCF/sh
$1.18	$2.28	$1.72	$1.90	$1.45	$3.08	$4.60	$3.26	$1.57	$1.69	$2.04	Cap. spending / shareCapex/sh
$15.59	$17.03	$18.29	$21.33	$18.49	$27.03	$32.88	$37.59	$38.69	$40.46	$40.95	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+6.0%/yr	+6.3%/yr
Owner earnings / share	+9.3%/yr	+6.7%/yr
EPS	+18.1%/yr	−5.4%/yr
Capital spending / share	+4.1%/yr	+3.0%/yr
Book value / share	+11.2%/yr	+17.0%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

46Mpeak FY2020

ROIC

2%low FY2025

Gross margin

31%low FY2016

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$137Mowner earningsvs.$66Mnet incomelow FY2024

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $66M of profit into $137M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$66M

Owner earnings$137M · 9% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$66M	$44M	$227M	$331M	$229M
Depreciation & amortizationnon-cash charge added back	+$122M	+$121M	+$122M	+$112M	+$106M
Stock-based compensationreal costnon-cash, but a real cost	+$26M	+$23M	+$31M	+$36M	+$33M
Working capital & othertiming of cash in and out, other non-cash items	+$2M	−$68M	−$99M	−$87M	−$30M
Cash from operations	$216M	$119M	$281M	$393M	$339M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$78M	−$73M	−$151M	−$112M	−$106M
Owner earnings	$137M	$46M	$130M	$280M	$232M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−$100M	−$35M
Free cash flow	$137M	$46M	$130M	$181M	$197M
Owner-earnings marginowner earnings ÷ revenue	9%	4%	8%	14%	13%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $26M), owner earnings is nearer $111M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 12.8×

Comfortable

Operating income $35M ÷ interest expense $3M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$350M

Net cash

Cash $367M + ST investments $10M − debt $27M

What this means
Cash and short-term investments exceed every dollar of debt by $350M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 191d

Long (60+ days)

DSO 76 + DIO 169 − DPO 53 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 11%

Solid through the cycle

10-yr median, range 2%–26%; 2% latest = NOPAT $29M ÷ invested capital $1.5B

Industry peers: median 7%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 2% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 9%

Solid through the cycle

10-yr median margin, range 4%–14%; latest $137M = operating cash $216M − maintenance capex $78M

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 9% of revenue this year, a 9% median across 10 years. Treating stock comp as the real expense it is (less $26M of SBC) leaves $111M.
Are earnings backed by cash? 3.26×

Cash-backed

Cash from ops $216M ÷ net income $66M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 25%

Reinvests most of it

Dividends + buybacks $34M ÷ Owner Earnings $137M

What this means
Of $137M Owner Earnings, $34M (25%) went back to shareholders, $0 dividends, $34M buybacks. Net of $26M stock comp, the real buyback was about $8M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.64×

Harvesting

Capex $78M ÷ depreciation $122M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.5B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.32×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $27M vs $879M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +186%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.45/share (latest year $1.44), the averaged base the calculator's gate runs on, and book value is $40.88/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 8% → 7% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin held roughly steady — about 8% early, 7% lately, median 11%.
Reinvestment, incremental ROIC 6%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +1%/yr

What this means
Owner earnings grew about 1% a year over the record.
Worst year 2025 · 2.4% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −0.8%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Framed as a capability

The filing positions AI as something the company uses, not something it fears.

“The Company has continued to see demand improvements across all target markets and geographies, with the most significant growth for the full year driven by strength in the computing market for AI server-related applications as well as increases in our automotive and industrial e…”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.3B

Cash & short-term investments$404M
Receivables$304M
Inventory$493M
Other current assets$101M

Current liabilities$411M

Debt due within a year$2M
Accounts payable$169M
Other current liabilities$241M

Current ratio3.17×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.97×stricter: inventory excluded

Cash ratio0.98×strictest: cash alone against what's due

Working capital$891Mthe cushion left after near-term bills

Debt due this year vs. cash$2M due · $404M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+22.1%the freshest read on whether the business is still growing

Current ratio, recent quarters3.4× → 3.2×

Deeper floors

Tangible book value$1.7Bequity stripped of goodwill & intangibles

Net current asset value$756MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$76M$49M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $2.3B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$1.1B · 48%
Buybacks$357M · 16%
Retained (debt / cash)$811M · 36%

Returned to owners$357M
27% of the owner earnings the business produced over the span, $0 as dividends and $357M as buybacks.
Average price paid for buybacks—
Buybacks ran $357M over the span, but a stock split in the window left the reported buyback-share counts on a basis the diluted-share count doesn't match, so a comparable average price can't be drawn.
Net change in share count−7.3%
The diluted count fell from 50M to 46M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained2%
Of the earnings it kept rather than paid out ($910M over the span), annual owner earnings (first three years vs last three) grew $15M, so each retained $1 added about 0.02 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Dr. Keh-Shew Lu	$8.1M	$30.7M	$232M
2022	Dr. Keh-Shew Lu	$9.0M	−$2.2M	$280M
2023	Dr. Keh-Shew Lu	$9.5M	$13.3M	$130M
2024	Dr. Keh-Shew Lu	$4.8M	−$506k	$46M
2025	—	$3.7M	−$1.0M	$137M
2025	—	$4.3M	$2.7M	$137M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years. A dash under the name means the filing tags the figure without naming the officer.

Insider ownership1.7%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$26M
The slice of the business handed to employees in shares this year, 2% of revenue, equal to 73% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Diodes is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

None of the 6 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Semiconductors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
OSISOSI Systems Inc. Common Stock (DE)	$1.7B	35%	9.6%	11%	6%
DIODDiodes	$1.5B	35%	11.8%	11%	9%
ENPHEnphase Energy	$1.5B	41%	13.2%	16%	22%
PENGPenguin Solutions Inc.	$1.4B	23%	4.0%	7%	5%
CRDOCredo Technology Group Holding Ltd	$1.3B	63%	-11.5%	-6%	-19%
ARRYArray Technologies Inc.	$1.3B	23%	-1.7%	-2%	7%
SEDGSolarEdge Technologies Inc.	$1.2B	31%	10.2%	14%	9%
VIAVViavi Solutions Inc.	$1.1B	58%	5.6%	5%	8%
Group median	—	35%	7.6%	9%	8%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Diodes has delivered.

Today’s price $

Through the cycle, Diodes earns about $136M on its 9.2% median owner-earnings margin. This year’s 9.3% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($136M) Net of stock comp (−$27M) Steady-state · maintenance capex ($145M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−23%/yr

Owner-earnings growth · ’16→’25+3%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $129M on 46M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $174M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($94M) runs well above depreciation ($123M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $145M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh DIOD against another business →

Cite: Owner Scorecard, "Diodes (DIOD), the owner's record," https://ownerscorecard.com/c/DIOD, data as of 2026-07-09.

Manual order: ← DINO its page in the Manual DIS →

Industry order: ← CSIQ the Semiconductors chapter DQ →