Deswell (DSWL)
NASDAQ:DSWL
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Deswell
(NASDAQ:DSWL)
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Rating:79Outperform
Price Target:
$3.50
▲(0.86% Upside)
Action:ReiteratedDate:12/30/25
The score is primarily supported by strong financial health (notably a debt-free balance sheet) and attractive valuation (low P/E and high dividend yield). This is partially offset by only mixed technical momentum and historical volatility in revenue and cash flow.
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet materially reduces financial risk and preserves strategic optionality. It supports sustained capital allocation toward capex, tooling, dividends, or M&A without reliance on external financing, improving resilience through industry downturns.
Negative Factors
Revenue volatility and weak trend
Irregular top-line trends and intermittent declines undermine predictability of margins and capacity utilization. Such volatility hampers long-term planning, complicates customer contract negotiation and can magnify margin pressure during demand softening periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet materially reduces financial risk and preserves strategic optionality. It supports sustained capital allocation toward capex, tooling, dividends, or M&A without reliance on external financing, improving resilience through industry downturns.
Read all positive factors
Deswell (DSWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.15M
Dividend Yield5.63%
Average Volume (3M)22.20K
Price to Earnings (P/E)2.1
Beta (1Y)0.27
Revenue Growth-1.72%
EPS Growth20.66%
CountryUS
Employees921
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.47
Shares Outstanding15,935,239
10 Day Avg. Volume20,271
30 Day Avg. Volume22,201
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.37
Price to Sales (P/S)0.56
P/FCF Ratio2.85
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit1.75
Enterprise Value/Ebitda2.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Deswell Business Overview & Revenue Model
Company Description
Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. It operat...
How the Company Makes Money
Deswell makes money primarily by selling manufactured products to business customers. Its key revenue streams include (1) plastic injection-molded products, where it earns revenue from producing custom plastic parts (often requiring tooling/mold d...
Deswell Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.66M | 67.61M | 69.37M | 77.54M | 85.49M | 64.89M |
| Gross Profit | 14.57M | 13.64M | 13.90M | 12.84M | 13.95M | 13.17M |
| EBITDA | 9.79M | 3.95M | 9.34M | 4.83M | 9.80M | 10.46M |
| Net Income | 12.47M | 11.14M | 7.71M | 2.06M | 8.23M | 8.23M |
Balance Sheet | ||||||
| Total Assets | 128.21M | 120.21M | 111.08M | 110.38M | 115.54M | 107.86M |
| Cash, Cash Equivalents and Short-Term Investments | 79.67M | 75.50M | 57.91M | 46.98M | 43.88M | 45.30M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 20.17M | 18.09M | 16.91M | 20.73M | 24.63M | 22.17M |
| Stockholders Equity | 108.05M | 102.12M | 94.17M | 89.65M | 90.91M | 85.69M |
Cash Flow | ||||||
| Free Cash Flow | 11.53M | 13.20M | 12.83M | 12.21M | -1.69M | 2.75M |
| Operating Cash Flow | 12.06M | 13.53M | 13.21M | 13.00M | -183.00K | 3.30M |
| Investing Cash Flow | 1.07M | 2.04M | -16.43M | -1.11M | -3.43M | -2.72M |
| Financing Cash Flow | -3.19M | -3.19M | -3.19M | -3.19M | -3.14M | -2.86M |
Deswell Technical Analysis
Negative
3.47
Price Trends
3.43
Negative
3.44
Negative
3.33
Negative
Market Momentum
-0.08
Positive
39.84
Neutral
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSWL, the sentiment is Negative. The current price of 3.47 is above the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.43, and above the 200-day MA of 3.33, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSWL.
Deswell Risk Analysis
Deswell disclosed 45 risk factors in its most recent earnings report. Deswell reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Permissions required from the PRC authorities for our operations could change requiring us to obtain additional licenses or abide by new regulations. Q1, 2023
2.
We could be delisted if the PCAOB becomes unable to completely inspect and investigate registered public accounting firms in Mainland China and Hong Kong again. Q1, 2023
Deswell Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $51.15M | 2.10 | 11.87% | 5.63% | -1.72% | 20.66% | |
66 Neutral | $78.00M | 354.27 | 9.95% | ― | 2.21% | -15.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $41.43M | 11.57 | 2.33% | ― | 14.07% | 153.24% | |
49 Neutral | $308.28M | -10.01 | -27.66% | ― | -44.83% | -296.14% | |
44 Neutral | $28.88M | -14.39 | -122.90% | ― | -16.49% | -59.21% |
* Technology Sector Average
DSWL
Deswell
3.21
1.02
46.58%
LGL
LGL Group
7.49
0.71
10.47%
MIND
MIND Technology
8.63
2.49
40.55%
REFR
Research Frontiers
0.83
-0.36
-30.17%
FCUV
Focus Universal
3.38
-44.62
-92.96%
OPTX
Syntec Optics Holdings
8.35
6.87
464.19%
Deswell Corporate Events
Deswell Industries Names Karen Chan Chi Yin as New Chief Financial Officer
Feb 3, 2026
On February 3, 2026, Deswell Industries, Inc. announced that it has appointed Ms. Karen Chan Chi Yin as Chief Financial Officer, effective February 2, 2026, succeeding Mr. Herman Wong, who resigned to pursue other interests. Chan, who previously w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.