DSWL Fundamental Analysis - DESWELL INDUSTRIES INC

Fundamental Rating

DSWL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. DSWL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DSWL has a valuation in line with the averages, but it does not seem to be growing. Finally DSWL also has an excellent dividend rating. These ratings would make DSWL suitable for dividend investing!

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1. Profitability

1.1 Basic Checks

In the past year DSWL was profitable.

DSWL had a positive operating cash flow in the past year.

DSWL had positive earnings in each of the past 5 years.

Of the past 5 years DSWL 4 years had a positive operating cash flow.

1.2 Ratios

DSWL has a Return On Assets of 9.27%. This is amongst the best in the industry. DSWL outperforms 91.20% of its industry peers.

DSWL has a better Return On Equity (10.91%) than 76.00% of its industry peers.

With a Return On Invested Capital value of 2.55%, DSWL perfoms like the industry average, outperforming 55.20% of the companies in the same industry.

The Average Return On Invested Capital over the past 3 years for DSWL is significantly below the industry average of 9.48%.

		Industry Rank	Sector Rank
ROA	9.27%
ROE	10.91%
ROIC	2.55%

ROA(3y)6.04%

ROA(5y)6.56%

ROE(3y)7.15%

ROE(5y)8.01%

ROIC(3y)2.65%

ROIC(5y)2.63%

1.3 Margins

With an excellent Profit Margin value of 16.47%, DSWL belongs to the best of the industry, outperforming 95.20% of the companies in the same industry.

In the last couple of years the Profit Margin of DSWL has grown nicely.

DSWL has a Operating Margin of 4.90%. This is in the better half of the industry: DSWL outperforms 64.80% of its industry peers.

DSWL's Operating Margin has improved in the last couple of years.

DSWL has a Gross Margin of 20.18%. This is in the lower half of the industry: DSWL underperforms 67.20% of its industry peers.

DSWL's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	4.9%
PM (TTM)	16.47%
GM	20.18%

OM growth 3Y7.95%

OM growth 5Y16.94%

PM growth 3Y19.99%

PM growth 5YN/A

GM growth 3Y7.42%

GM growth 5Y2.09%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSWL is destroying value.

The number of shares outstanding for DSWL remains at a similar level compared to 1 year ago.

Compared to 5 years ago, DSWL has more shares outstanding

There is no outstanding debt for DSWL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

DSWL has an Altman-Z score of 3.90. This indicates that DSWL is financially healthy and has little risk of bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 3.90, DSWL is in line with its industry, outperforming 60.00% of the companies in the same industry.

DSWL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	3.9

ROIC/WACC0.27

WACC9.38%

2.3 Liquidity

A Current Ratio of 5.45 indicates that DSWL has no problem at all paying its short term obligations.

DSWL has a Current ratio of 5.45. This is amongst the best in the industry. DSWL outperforms 84.00% of its industry peers.

DSWL has a Quick Ratio of 4.91. This indicates that DSWL is financially healthy and has no problem in meeting its short term obligations.

With an excellent Quick ratio value of 4.91, DSWL belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	5.45
Quick Ratio	4.91

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

DSWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.73%, which is quite impressive.

DSWL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.

The Revenue has decreased by -2.53% in the past year.

The Revenue has been growing slightly by 0.67% on average over the past years.

EPS 1Y (TTM)45.73%

EPS 3Y11.04%

EPS 5YN/A

EPS Q2Q%19.68%

Revenue 1Y (TTM)-2.53%

Revenue growth 3Y-7.71%

Revenue growth 5Y0.67%

Sales Q2Q%2.52%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.43, which indicates a rather cheap valuation of DSWL.

Based on the Price/Earnings ratio, DSWL is valued cheaply inside the industry as 97.60% of the companies are valued more expensively.

DSWL is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	5.43
Fwd PE	N/A

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, DSWL is valued cheaper than 99.20% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	4.59
EV/EBITDA	-8.87

4.3 Compensation for Growth

DSWL has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.32%, DSWL is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 1.48, DSWL pays a better dividend. On top of this DSWL pays more dividend than 99.20% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.32, DSWL pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	5.32%

5.2 History

The dividend of DSWL has a limited annual growth rate of 5.89%.

DSWL has paid a dividend for at least 10 years, which is a reliable track record.

DSWL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Dividend Growth(5Y)5.89%

Div Incr Years0

Div Non Decr Years7

5.3 Sustainability

DSWL pays out 28.62% of its income as dividend. This is a sustainable payout ratio.

DP28.62%

EPS Next 2YN/A

EPS Next 3YN/A

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DESWELL INDUSTRIES INC

NASDAQ:DSWL (8/29/2025, 8:17:28 PM)

3.8

+0.04 (+1.06%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryElectronic Equipment, Instruments & Components

Earnings (Last)N/A N/A

Earnings (Next)N/A N/A

Inst Owners2.89%

Inst Owner Change5.75%

Ins Owners71.21%

Ins Owner ChangeN/A

Market Cap60.57M

Analysts0

Price TargetN/A

Short Float %0.19%

Short Ratio0.4

Dividend

		Industry Rank	Sector Rank
Dividend Yield	5.32%

Yearly Dividend0.2

Dividend Growth(5Y)5.89%

DP28.62%

Div Incr Years0

Div Non Decr Years7

Ex-Date07-03 2025-07-03 (0.1)

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)N/A

PT rev (3m)N/A

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	5.43
Fwd PE	N/A
P/S	0.9
P/FCF	4.59
P/OCF	4.48
P/B	0.59
P/tB	0.59
EV/EBITDA	-8.87

EPS(TTM)0.7

EY18.42%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)0.83

FCFY21.8%

OCF(TTM)0.85

OCFY22.34%

SpS4.24

BVpS6.41

TBVpS6.41

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	9.27%
ROE	10.91%
ROCE	3.23%
ROIC	2.55%
ROICexc	9.7%
ROICexgc	9.7%
OM	4.9%
PM (TTM)	16.47%
GM	20.18%
FCFM	19.53%

ROA(3y)6.04%

ROA(5y)6.56%

ROE(3y)7.15%

ROE(5y)8.01%

ROIC(3y)2.65%

ROIC(5y)2.63%

ROICexc(3y)7.45%

ROICexc(5y)6.56%

ROICexgc(3y)7.45%

ROICexgc(5y)6.56%

ROCE(3y)3.35%

ROCE(5y)3.34%

ROICexcg growth 3Y20.29%

ROICexcg growth 5Y26.32%

ROICexc growth 3Y20.29%

ROICexc growth 5Y26.32%

OM growth 3Y7.95%

OM growth 5Y16.94%

PM growth 3Y19.99%

PM growth 5YN/A

GM growth 3Y7.42%

GM growth 5Y2.09%

F-Score7

Asset Turnover0.56

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Debt/EBITDA	0
Cap/Depr	21.86%
Cap/Sales	0.49%
Interest Coverage	250
Cash Conversion	280.03%
Profit Quality	118.53%
Current Ratio	5.45
Quick Ratio	4.91
Altman-Z	3.9

F-Score7

WACC9.38%

ROIC/WACC0.27

Cap/Depr(3y)31.02%

Cap/Depr(5y)42.11%

Cap/Sales(3y)0.69%

Cap/Sales(5y)0.93%

Profit Quality(3y)288.78%

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)45.73%

EPS 3Y11.04%

EPS 5YN/A

EPS Q2Q%19.68%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-2.53%

Revenue growth 3Y-7.71%

Revenue growth 5Y0.67%

Sales Q2Q%2.52%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-12.4%

EBIT growth 3Y-0.37%

EBIT growth 5Y17.72%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y2.92%

FCF growth 3YN/A

FCF growth 5Y0.92%

OCF growth 1Y2.47%

OCF growth 3YN/A

OCF growth 5Y0.62%

DESWELL INDUSTRIES INC (DSWL) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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