Stock fact sheet · data as of
Diodes Incorporated (DIOD): fair value, margin of safety and Wheel Score
Technology · Semiconductors · United States · Blend
Is DIOD undervalued?
Diodes Incorporated (DIOD) closed at 85.36 on 16 Oct 2026, 67% above the GLS average fair value of 51.08. 7 of the 8 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 8 models disagree widely: GLS Growth gives 9.07 while Graham Growth gives 107.24. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files DIOD under Blend.
Nine valuation models for DIOD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 34.47 | -60% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 42.35 | -50% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 107.24 | +26% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 46.87 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 9.07 | -89% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 83.77 | -2% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 64.08 | -25% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 20.83 | -76% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 16.23 | -81% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 163.50 | +92% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health DIOD scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 3.4%, ROE 3.5%, ROA 2.7% - with debt at 0.05 times equity and a free-cash-flow yield of 3.6%.
Diodes Incorporated pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Distributor 64%, Direct Sales 36% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 3.4% |
|---|---|---|---|
| GLS Moat | 3.4 / 10 | ROE | 3.5% |
| Debt / equity | 0.05 | ROA | 2.7% |
| Free-cash-flow yield | 3.6% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 53: Fair
DIOD scores 53 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 18/20, Moat 5/15, Premium 18/20, Stability 13/20. Value (0/25) is where the points are missing.
Implied volatility is 70% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (18 of 20) because volatility this high usually comes with a reason. Chain open interest is 2,421 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 611k shares a day on a market cap of $3.9B, with a beta of 1.90 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -67% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 5 / 15 | moat 3.4/10 | |
| Premium | 18 / 20 | implied volatility 70% | |
| Stability | 13 / 20 | 611k shares/day, $3.9B cap, beta 1.90 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Diodes Incorporated by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| VSH Vishay Intertechnology, Inc. | 28.89 | 10.38 | -178% | 49Weak | $4.1B |
| ACMR ACM Research, Inc. | 58.09 | 63.18 | +8% | 45Weak | $3.8B |
| KLIC Kulicke and Soffa Industries, Inc. | 83.05 | 20.15 | -312% | 52Fair | $4.3B |
| ACLS Axcelis Technologies, Inc. | 115.11 | 62.51 | -84% | 44Weak | $3.6B |
| PENG Penguin Solutions, Inc. | 67.59 | 81.27 | +17% | 45Weak | $3.5B |
| SYNA Synaptics Incorporated | 117.36 | 138.50 | +15% | 45Weak | $4.7B |
| IPGP IPG Photonics Corporation | 73.76 | 20.57 | -259% | 51Fair | $3.1B |
| AXTI AXT, Inc. | 57.91 | 2.20 | -2528% | 32Weak | $2.9B |
| CRUS Cirrus Logic, Inc. | 108.40 | 222.50 | +51% | 92Prime | $5.4B |
| VECO Veeco Instruments Inc. | 45.82 | 14.11 | -225% | 43Weak | $2.8B |
| AMBA Ambarella, Inc. | 63.35 | 7.60 | -734% | 45Weak | $2.8B |
| PI Impinj, Inc. | 192.30 | 21.86 | -780% | 40Weak | $5.9B |
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Start free See the Sunday ScanQuestions about DIOD
Is DIOD undervalued right now?
No: at 85.36 the stock trades 67% above the GLS average fair value of 51.08 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of DIOD and what does it mean?
DIOD scores 53 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DIOD?
51.08 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Diodes Incorporated report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DIOD have listed options, and how liquid are they?
Yes. The nightly snapshot found 228 listed contracts with 2,421 open interest across all expiries and implied volatility of 70% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.