DESWELL INDUSTRIES INC (DSWL)
VG2506391011 - Common Stock
Taking everything into account, DSWL scores 5 out of 10 in our fundamental rating. DSWL was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. While DSWL has a great health rating, its profitability is only average at the moment. DSWL is valued correctly, but it does not seem to be growing. Finally DSWL also has an excellent dividend rating. These ratings could make DSWL a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
DSWL had positive earnings in the past year.
In the past year DSWL had a positive cash flow from operations.
Of the past 5 years DSWL 4 years were profitable.
Of the past 5 years DSWL 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.54%, DSWL is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
DSWL's Return On Equity of 6.75% is fine compared to the rest of the industry. DSWL outperforms 60.32% of its industry peers.
The Return On Invested Capital of DSWL (2.98%) is comparable to the rest of the industry.
DSWL had an Average Return On Invested Capital over the past 3 years of 2.75%. This is significantly below the industry average of 9.44%.
The last Return On Invested Capital (2.98%) for DSWL is above the 3 year average (2.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.75% | ||
| ROIC | 2.98% |
ROA(3y)5.54%
ROA(5y)3.91%
ROE(3y)6.98%
ROE(5y)4.89%
ROIC(3y)2.75%
ROIC(5y)2.05%
1.3 Margins
DSWL's Profit Margin of 8.75% is amongst the best of the industry. DSWL outperforms 80.95% of its industry peers.
DSWL's Profit Margin has declined in the last couple of years.
The Operating Margin of DSWL (4.46%) is better than 60.32% of its industry peers.
In the last couple of years the Operating Margin of DSWL has grown nicely.
The Gross Margin of DSWL (18.53%) is worse than 64.29% of its industry peers.
In the last couple of years the Gross Margin of DSWL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.46% | ||
| PM (TTM) | 8.75% | ||
| GM | 18.53% |
OM growth 3Y16.26%
OM growth 5Y2.55%
PM growth 3YN/A
PM growth 5Y-23.27%
GM growth 3Y-3.09%
GM growth 5Y0.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSWL is destroying value.
Compared to 1 year ago, DSWL has about the same amount of shares outstanding.
DSWL has about the same amout of shares outstanding than it did 5 years ago.
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
An Altman-Z score of 2.87 indicates that DSWL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.87, DSWL perfoms like the industry average, outperforming 56.35% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.32
WACC9.29%
2.3 Liquidity
A Current Ratio of 4.25 indicates that DSWL has no problem at all paying its short term obligations.
DSWL has a better Current ratio (4.25) than 76.98% of its industry peers.
DSWL has a Quick Ratio of 3.49. This indicates that DSWL is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.49, DSWL is doing good in the industry, outperforming 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.25 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.00% over the past year.
Measured over the past years, DSWL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.73% on average per year.
Looking at the last year, DSWL shows a very negative growth in Revenue. The Revenue has decreased by -22.08% in the last year.
The Revenue has been growing slightly by 4.95% on average over the past years.
EPS 1Y (TTM)90%
EPS 3YN/A
EPS 5Y-19.73%
EPS growth Q2Q650%
Revenue 1Y (TTM)-22.08%
Revenue growth 3Y5.73%
Revenue growth 5Y4.95%
Revenue growth Q2Q-15.1%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.18 indicates a rather cheap valuation of DSWL.
98.41% of the companies in the same industry are more expensive than DSWL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.20, DSWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DSWL is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.8 | ||
| EV/EBITDA | -8.47 |
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
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.66%, DSWL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, DSWL pays a better dividend. On top of this DSWL pays more dividend than 100.00% of the companies listed in the same industry.
DSWL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.66% |
5.2 History
On average, the dividend of DSWL grows each year by 23.51%, which is quite nice.
DSWL has been paying a dividend for at least 10 years, so it has 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)23.51%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
51.62% of the earnings are spent on dividend by DSWL. This is a bit on the high side, but may be sustainable.
The Dividend Rate of DSWL has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP51.62%
EPS Next 2YN/A
EPS Next 3YN/A
DESWELL INDUSTRIES INC
NASDAQ:DSWL (4/26/2024, 12:13:20 PM)
2.35
+0.03 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.46M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.46% | ||
| PM (TTM) | 8.75% | ||
| GM | 18.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.25 | ||
| Quick Ratio | 3.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)90%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-22.08%
Revenue growth 3Y5.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
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