Deswell Industries Inc (DSWL) stock analysis
Close on Nov 12, 2026Market cap $47.97MP/E 4.5Yield 6.62%
StockData Score
Prices as of Nov 12, 2026How the score works
Mixed11 of 30 checks passed
Deswell Industries passes 11 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
No debt
Deswell Industries has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 5.2% a year on average over the last five fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 72.7% a year over the last three fiscal years.
Interest well covered
No meaningful interest expense to cover.
What to watch
Return on equity under 15%
Return on equity was 10.0% over the last twelve months and averaged 8.3% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 3.7%, below the 10% that usually covers the cost of capital.
Revenue growing under 10% a year
Revenue grew -7.4% a year over the last three fiscal years, short of the 10% we look for.
Earnings growth not accelerating
Net income grew -4.6% over the last twelve months, against a 5-year average of 5.2% a year.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth2/6
Revenue growing under 10% a year
Revenue grew -7.4% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 72.7% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -4.6% over the last twelve months, against a 5-year average of 5.2% a year.
Growing slower than the industry
Revenue grew -9.3% over the last twelve months; the Miscellaneous Plastics Products median is 9.2%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 22.4% over the last twelve months, against 20.2% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 10.0% over the last twelve months and averaged 8.3% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 3.7%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Deswell Industries's return on equity of 10.0% is above the Miscellaneous Plastics Products median of 7.1%.
Earnings grew over 5 years
Net income grew 5.2% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 17.3% over the last twelve months, against a 5-year average of 11.4%.
Net margin above the industry
Deswell Industries's net margin of 17.3% is above the Miscellaneous Plastics Products median of 5.0%.
Financial health5/6
No debt
Deswell Industries has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 5.25 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Deswell Industries has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Deswell Industries. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $20.02K
- Value traded per 1% price move
- $7.92K
Downside
Medium risk
- Typical loss in a bad month
- 15.3%
- Volatility (annualized)
- 42%
- Sharpe ratio, 1 year
- -0.44
- Beta to the S&P 500 (5Y)
- 0.25
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -9.3% | -7.4% | -1.1% | +3.2% | |
| Gross profit | +0.6% | +2.2% | +0.8% | +11.1% | |
| Operating income | -40.2% | -11.8% | -9.5% | – | |
| Net income | -4.6% | +72.8% | +5.2% | – | |
| EPS, diluted | -4.3% | +72.7% | +5.6% | – | |
| Free cash flow | -64.3% | -27.2% | +11.4% | – | |
| Dividend per share | 0.0% | 0.0% | +2.1% | +3.6% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 1.8% | 9.9% | 10.0% | |
| Return on assets | 1.5% | 8.1% | 8.5% | |
| Current ratio | 3.79 | 3.71 | 5.25 | |
| Inventory turnover | 3.9× | 4.2× | 4.5× | |
| Capex to revenue | 4.8% | 0.8% | 0.8% | |
| Diluted shares | 0M | 16M | 0M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Deswell Industries generated $45.12M from operations and spent $19.43M on capital expenditure, dividends and share buybacks. 18% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 17.3% | 0.49× | 1.18× | 10.0% |
| FY2025 | 16.5% | 0.58× | 1.18× | 11.3% |
| FY2024 | 11.1% | 0.63× | 1.20× | 8.4% |
| FY2023 | 2.7% | 0.69× | 1.25× | 2.3% |
| FY2022 | 9.6% | 0.77× | 1.27× | 9.3% |
| FY2021 | 12.7% | 0.64× | 1.22× | 9.9% |
| FY2020 | -2.0% | 0.67× | 1.19× | -1.6% |
| FY2019 | 6.4% | 0.66× | 1.21× | 5.2% |
| FY2018 | 10.2% | 0.63× | 1.22× | 7.9% |
| FY2017 | 3.1% | 0.50× | 1.17× | 1.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$10.63M
- Cash generatingOperating cash flow above zero$5.20M
- Return on assets improvedROA up on the prior year10.0% → 8.8%
- Earnings backed by cashOperating cash flow above net income$5.20M vs $10.63M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose5.45 → 5.25
- No dilutionShare count did not rise0M → 0M
- Gross margin improvedGross margin up on the prior year20.18% → 22.37%
- More efficientAsset turnover rose0.61 → 0.51
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