DSWL Fundamental Analysis - DESWELL INDUSTRIES INC

Fundamental Rating

Taking everything into account, DSWL scores 6 out of 10 in our fundamental rating. DSWL was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. DSWL has an excellent financial health rating, but there are some minor concerns on its profitability. DSWL has a valuation in line with the averages, but on the other hand it scores bad on growth. DSWL also has an excellent dividend rating. This makes DSWL very considerable for dividend investing!

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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.

Each year in the past 5 years DSWL has been profitable.

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

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's Return On Equity of 10.91% is fine compared to the rest of the industry. DSWL outperforms 76.00% of its industry peers.

Looking at the Return On Invested Capital, with a value of 2.55%, DSWL is in line with its industry, outperforming 55.20% of the companies in the same industry.

Measured over the past 3 years, the Average Return On Invested Capital 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

DSWL's Profit Margin of 16.47% is amongst the best of the industry. DSWL outperforms 95.20% of its industry peers.

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

DSWL's Operating Margin of 4.90% is fine compared to the rest 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.

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

		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.

DSWL has more shares outstanding than it did 5 years ago.

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

2.2 Solvency

DSWL has an Altman-Z score of 4.05. This indicates that DSWL is financially healthy and has little risk of bankruptcy at the moment.

DSWL has a Altman-Z score of 4.05. This is comparable to the rest of the industry: DSWL outperforms 60.00% of its industry peers.

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	4.05

ROIC/WACC0.27

WACC9.4%

2.3 Liquidity

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

With an excellent Current ratio value of 5.45, DSWL belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.

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.

DSWL has a better Quick ratio (4.91) than 86.40% of its industry peers.

		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

The Earnings Per Share has grown by an impressive 45.73% over the past year.

The Earnings Per Share has been growing by 11.04% 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 -2.53% in the last 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

A Price/Earnings ratio of 5.84 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 27.38, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	5.84
Fwd PE	N/A

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 99.20% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	4.93
EV/EBITDA	-7.93

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

DSWL has a Yearly Dividend Yield of 4.96%, which is a nice return.

Compared to an average industry Dividend Yield of 2.20, DSWL pays a better dividend. On top of this DSWL pays more dividend than 98.40% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.38, DSWL pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.96%

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

28.62% of the earnings are spent on dividend by DSWL. This is a low number and sustainable payout ratio.

DP28.62%

EPS Next 2YN/A

EPS Next 3YN/A

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DESWELL INDUSTRIES INC

NASDAQ:DSWL (9/19/2025, 8:00:01 PM)

4.0845

+0.05 (+1.35%)

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 Cap65.11M

Analysts0

Price TargetN/A

Short Float %0.21%

Short Ratio0.35

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.96%

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	5.84
Fwd PE	N/A
P/S	0.96
P/FCF	4.93
P/OCF	4.81
P/B	0.64
P/tB	0.64
EV/EBITDA	-7.93

EPS(TTM)0.7

EY17.14%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)0.83

FCFY20.28%

OCF(TTM)0.85

OCFY20.79%

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	4.05

F-Score7

WACC9.4%

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

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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

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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