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DESWELL INDUSTRIES INC (DSWL) Stock Fundamental Analysis

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

2.36  +0.12 (+5.36%)

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 has a valuation in line with the averages, but it does not seem to be growing. DSWL also has an excellent dividend rating. These ratings could make DSWL a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

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

With an excellent Return On Assets value of 8.58%, DSWL belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.47%, DSWL is in the better half of the industry, outperforming 75.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.63%, DSWL is in line with its industry, outperforming 57.60% 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 9.29%.
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

DSWL has a Profit Margin of 15.47%. This is amongst the best in the industry. DSWL outperforms 91.20% of its industry peers.
In the last couple of years the Profit Margin of DSWL has grown nicely.
DSWL has a Operating Margin of 4.94%. This is in the better half of the industry: DSWL outperforms 67.20% of its industry peers.
In the last couple of years the Operating Margin of DSWL has grown nicely.
The Gross Margin of DSWL (20.06%) is worse than 64.80% of its industry peers.
DSWL's Gross Margin has improved in the last couple of years.
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
Compared to 5 years ago, DSWL has more shares outstanding
DSWL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

DSWL has an Altman-Z score of 2.84. This is not the best score and indicates that DSWL is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DSWL (2.84) is comparable to the rest of the 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.84
ROIC/WACC0.29
WACC9.01%
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

A Current Ratio of 4.52 indicates that DSWL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.52, DSWL belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 3.97, DSWL belongs to the top of the industry, outperforming 83.20% of the companies in the same industry.
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

The Earnings Per Share has grown by an impressive 70.32% over the past year.
The Earnings Per Share has been growing by 12.28% on average over the past years. This is quite good.
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

With a Price/Earnings ratio of 3.63, the valuation of DSWL can be described as very cheap.
96.80% of the companies in the same industry are more expensive than DSWL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.21. DSWL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.63
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

Based on the Price/Free Cash Flow ratio, DSWL is valued cheaper than 98.40% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.25
EV/EBITDA -12.09
DSWL Per share dataDSWL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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)0.3
EPS Next 2YN/A
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

DSWL has a Yearly Dividend Yield of 8.93%, which is a nice return.
DSWL's Dividend Yield is rather good when compared to the industry average which is at 2.20. 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 2.41.
Industry RankSector Rank
Dividend Yield 8.93%

5.2 History

The dividend of DSWL is nicely growing with an annual growth rate of 14.90%!
DSWL has paid a dividend for at least 10 years, which is a reliable track record.
As DSWL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 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.
DSWL's earnings are growing slower than its dividend. 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 (5/9/2025, 8:00:01 PM)

2.36

+0.12 (+5.36%)

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 Owners2.52%
Inst Owner Change-14.2%
Ins Owners71.21%
Ins Owner ChangeN/A
Market Cap37.62M
Analysts0
Price TargetN/A
Short Float %0.06%
Short Ratio0.19
Dividend
Industry RankSector Rank
Dividend Yield 8.93%
Yearly Dividend0.2
Dividend Growth(5Y)14.9%
DP30.88%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
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 3.63
Fwd PE N/A
P/S 0.56
P/FCF 3.25
P/OCF 3.15
P/B 0.38
P/tB 0.38
EV/EBITDA -12.09
EPS(TTM)0.65
EY27.54%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.73
FCFY30.8%
OCF(TTM)0.75
OCFY31.79%
SpS4.19
BVpS6.2
TBVpS6.2
PEG (NY)N/A
PEG (5Y)0.3
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 2.84
F-Score7
WACC9.01%
ROIC/WACC0.29
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%