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DESWELL INDUSTRIES INC (DSWL) Stock Fundamental Analysis

NASDAQ:DSWL - Nasdaq - VG2506391011 - Common Stock - Currency: USD

2.78  +0.03 (+1.09%)

Fundamental Rating

6

Overall DSWL gets a fundamental rating of 6 out of 10. We evaluated DSWL against 125 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 would make DSWL suitable for dividend investing!


Dividend Valuation Growth Profitability Health

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6

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.
DSWL Yearly Net Income VS EBIT VS OCF VS FCFDSWL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M

1.2 Ratios

DSWL's Return On Assets of 8.58% is amongst the best of the industry. DSWL outperforms 90.40% of its industry peers.
The Return On Equity of DSWL (10.47%) is better than 76.00% of its industry peers.
With a Return On Invested Capital value of 2.63%, DSWL perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
DSWL had an Average Return On Invested Capital over the past 3 years of 2.76%. This is significantly below the industry average of 9.16%.
Industry RankSector Rank
ROA 8.58%
ROE 10.47%
ROIC 2.63%
ROA(3y)5.32%
ROA(5y)4.44%
ROE(3y)6.52%
ROE(5y)5.5%
ROIC(3y)2.76%
ROIC(5y)2.42%
DSWL Yearly ROA, ROE, ROICDSWL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5

1.3 Margins

The Profit Margin of DSWL (15.47%) is better than 93.60% of its industry peers.
DSWL's Profit Margin has improved in the last couple of years.
The Operating Margin of DSWL (4.94%) is better than 68.00% of its industry peers.
DSWL's Operating Margin has improved in the last couple of years.
DSWL's Gross Margin of 20.06% is on the low side compared to the rest of the industry. DSWL is outperformed by 64.00% of its industry peers.
In the last couple of years the Gross Margin of DSWL has grown nicely.
Industry RankSector Rank
OM 4.94%
PM (TTM) 15.47%
GM 20.06%
OM growth 3Y10.29%
OM growth 5Y49.37%
PM growth 3Y-4.19%
PM growth 5Y11.47%
GM growth 3Y-0.49%
GM growth 5Y5.32%
DSWL Yearly Profit, Operating, Gross MarginsDSWL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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7

2. Health

2.1 Basic Checks

DSWL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DSWL has more shares outstanding
DSWL has more 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.
DSWL Yearly Shares OutstandingDSWL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
DSWL Yearly Total Debt VS Total AssetsDSWL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

An Altman-Z score of 3.02 indicates that DSWL is not in any danger for bankruptcy at the moment.
The Altman-Z score of DSWL (3.02) is comparable to the rest of the 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.02
ROIC/WACC0.28
WACC9.45%
DSWL Yearly LT Debt VS Equity VS FCFDSWL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M

2.3 Liquidity

DSWL has a Current Ratio of 4.52. This indicates that DSWL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DSWL (4.52) is better than 80.00% of its industry peers.
DSWL has a Quick Ratio of 3.97. This indicates that DSWL is financially healthy and has no problem in meeting its short term obligations.
DSWL has a Quick ratio of 3.97. This is in the better half of the industry: DSWL outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 4.52
Quick Ratio 3.97
DSWL Yearly Current Assets VS Current LiabilitesDSWL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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3

3. Growth

3.1 Past

DSWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.32%, 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 12.28% yearly.
Looking at the last year, DSWL shows a decrease in Revenue. The Revenue has decreased by -5.40% in the last year.
The Revenue has been growing slightly by 0.82% on average over the past years.
EPS 1Y (TTM)70.32%
EPS 3Y-1.88%
EPS 5Y12.28%
EPS Q2Q%76.41%
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y2.24%
Revenue growth 5Y0.82%
Sales Q2Q%-6.77%

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.
DSWL Yearly Revenue VS EstimatesDSWL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 4.28, which indicates a rather cheap valuation of DSWL.
96.80% of the companies in the same industry are more expensive than DSWL, based on the Price/Earnings ratio.
DSWL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Industry RankSector Rank
PE 4.28
Fwd PE N/A
DSWL Price Earnings VS Forward Price EarningsDSWL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSWL indicates a rather cheap valuation: DSWL is cheaper than 98.40% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.82
EV/EBITDA -10.7
DSWL Per share dataDSWL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The decent profitability rating of DSWL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2YN/A
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.27%, DSWL is a good candidate for dividend investing.
DSWL's Dividend Yield is rather good when compared to the industry average which is at 1.82. DSWL pays more dividend than 99.20% of the companies in the same industry.
DSWL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 7.27%

5.2 History

On average, the dividend of DSWL grows each year by 14.90%, which is quite nice.
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)14.9%
Div Incr Years0
Div Non Decr Years7
DSWL Yearly Dividends per shareDSWL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

DSWL pays out 30.88% of its income as dividend. This is a sustainable payout ratio.
The dividend of DSWL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.88%
EPS Next 2YN/A
EPS Next 3YN/A
DSWL Yearly Income VS Free CF VS DividendDSWL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M 10M
DSWL Dividend Payout.DSWL Dividend Payout, showing the Payout Ratio.DSWL Dividend Payout.PayoutRetained Earnings

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DESWELL INDUSTRIES INC

NASDAQ:DSWL (7/11/2025, 8:06:07 PM)

2.78

+0.03 (+1.09%)

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 Owners2.91%
Inst Owner Change0%
Ins Owners71.21%
Ins Owner ChangeN/A
Market Cap44.31M
Analysts0
Price TargetN/A
Short Float %0.33%
Short Ratio0.69
Dividend
Industry RankSector Rank
Dividend Yield 7.27%
Yearly Dividend0.2
Dividend Growth(5Y)14.9%
DP30.88%
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 RankSector Rank
PE 4.28
Fwd PE N/A
P/S 0.66
P/FCF 3.82
P/OCF 3.71
P/B 0.45
P/tB 0.45
EV/EBITDA -10.7
EPS(TTM)0.65
EY23.38%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.73
FCFY26.15%
OCF(TTM)0.75
OCFY26.99%
SpS4.19
BVpS6.2
TBVpS6.2
PEG (NY)N/A
PEG (5Y)0.35
Profitability
Industry RankSector Rank
ROA 8.58%
ROE 10.47%
ROCE 3.33%
ROIC 2.63%
ROICexc 7.8%
ROICexgc 7.8%
OM 4.94%
PM (TTM) 15.47%
GM 20.06%
FCFM 17.34%
ROA(3y)5.32%
ROA(5y)4.44%
ROE(3y)6.52%
ROE(5y)5.5%
ROIC(3y)2.76%
ROIC(5y)2.42%
ROICexc(3y)6.13%
ROICexc(5y)5.29%
ROICexgc(3y)6.13%
ROICexgc(5y)5.29%
ROCE(3y)3.49%
ROCE(5y)3.06%
ROICexcg growth 3Y17.35%
ROICexcg growth 5Y57.24%
ROICexc growth 3Y17.35%
ROICexc growth 5Y57.24%
OM growth 3Y10.29%
OM growth 5Y49.37%
PM growth 3Y-4.19%
PM growth 5Y11.47%
GM growth 3Y-0.49%
GM growth 5Y5.32%
F-Score7
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 24.41%
Cap/Sales 0.55%
Interest Coverage 250
Cash Conversion 248.14%
Profit Quality 112.1%
Current Ratio 4.52
Quick Ratio 3.97
Altman-Z 3.02
F-Score7
WACC9.45%
ROIC/WACC0.28
Cap/Depr(3y)52.47%
Cap/Depr(5y)42.91%
Cap/Sales(3y)1.11%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.32%
EPS 3Y-1.88%
EPS 5Y12.28%
EPS Q2Q%76.41%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y2.24%
Revenue growth 5Y0.82%
Sales Q2Q%-6.77%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.86%
EBIT growth 3Y12.77%
EBIT growth 5Y50.59%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y393.11%
FCF growth 3Y67.08%
FCF growth 5Y58.31%
OCF growth 1Y256.96%
OCF growth 3Y58.77%
OCF growth 5Y43.51%