Is the business good?
How good a business is DIOD?
Diodes Incorporated earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.0%
Return on invested capital · cost of capital 9.0% · 5.0 points below what the capital costs: growth destroys value
- Operating margin
- 4.8%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2026
- Cash conversion
- 1.66×
Cash conversion · 2.57× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.03%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 15% |
| FY2022 | 20% |
| FY2023 | 15% |
| FY2024 | 3.9% |
| FY2025 | 2.4% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 4.8%
- Net margin12 months to Q2 2026
- 5.3%
- Free cash flow margin
- 8.7%
- R&D as % of revenue
- 10%
- Revenue, trailing twelve months
- $1.63B
- Free cash flow, trailing twelve months
- $143M
- Net income, trailing twelve months
- $86M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.