Want to see DSWL full AI Analyst Report?
Top Page
Deswell
(NASDAQ:DSWL)
Select Model
Select Model
Rating:76Outperform
Price Target:
$4.00
▲(15.27% Upside)
Action:Reiterated
Date:06/18/26
The score is driven primarily by very attractive valuation (low P/E and high dividend yield) and a strong, debt-free balance sheet. These strengths are partially offset by multi-year revenue declines and recently weaker free cash flow, while technicals are moderately supportive with price above key moving averages.
Positive Factors
Debt-free, liquid balance sheet
A zero-debt balance sheet with a sizable equity base and material cash provides durable financial flexibility. It lowers solvency risk, supports capital allocation (dividends, tooling, capex), and gives the company runway to invest in growth or weather demand cyclicality over the next several quarters.
Negative Factors
Multi-year revenue declines
A persistent downtrend in revenue erodes scale and reduces pricing and operating leverage. Continued top-line contraction limits ability to absorb fixed costs, constrains future margin expansion, and raises execution risk for growth initiatives over the medium term unless end-market demand or customer wins reverse the trend.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free, liquid balance sheet
A zero-debt balance sheet with a sizable equity base and material cash provides durable financial flexibility. It lowers solvency risk, supports capital allocation (dividends, tooling, capex), and gives the company runway to invest in growth or weather demand cyclicality over the next several quarters.
Read all positive factors
Deswell (DSWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.66M
Dividend Yield5.63%
Average Volume (3M)22.20K
Price to Earnings (P/E)5.1
Beta (1Y)0.27
Revenue Growth-9.29%
EPS Growth-4.55%
CountryUS
Employees921
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.67
Shares Outstanding15,935,239
10 Day Avg. Volume20,271
30 Day Avg. Volume22,201
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)0.44
Price to Sales (P/S)0.78
P/FCF Ratio10.10
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit2.37
Enterprise Value/Ebitda3.95
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. specializes in the production and sale of custom injection-molded plastic parts and components, various electronic products and subassemblies, as well as metallic molds and their related accessory parts. These offerings ar...
How the Company Makes Money
Deswell makes money primarily by manufacturing products and components to customer specifications and recognizing revenue from the sale of those goods and services. Its key revenue streams are: (1) Plastics segment: revenue from producing plastic ...
Deswell Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.33M | 67.61M | 69.37M | 77.54M | 85.49M |
| Gross Profit | 13.72M | 13.64M | 13.90M | 12.84M | 13.95M |
| EBITDA | 3.65M | 3.95M | 9.34M | 4.83M | 9.80M |
| Net Income | 10.63M | 11.14M | 7.71M | 2.06M | 8.23M |
Balance Sheet | |||||
| Total Assets | 129.96M | 120.21M | 111.08M | 110.38M | 115.54M |
| Cash, Cash Equivalents and Short-Term Investments | 82.33M | 75.50M | 57.91M | 46.98M | 43.88M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 20.57M | 18.09M | 16.91M | 20.73M | 24.63M |
| Stockholders Equity | 109.39M | 102.12M | 94.17M | 89.65M | 90.91M |
Cash Flow | |||||
| Free Cash Flow | 4.71M | 13.20M | 12.83M | 12.21M | -1.69M |
| Operating Cash Flow | 5.20M | 13.53M | 13.21M | 13.00M | -183.00K |
| Investing Cash Flow | -6.91M | 2.04M | -16.43M | -1.11M | -3.43M |
| Financing Cash Flow | -3.36M | -3.19M | -3.19M | -3.19M | -3.14M |
Deswell Technical Analysis
Positive
3.47
Price Trends
3.16
Positive
3.13
Positive
3.19
Positive
Market Momentum
0.13
Negative
56.42
Neutral
7.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSWL, the sentiment is Positive. The current price of 3.47 is above the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.16, and above the 200-day MA of 3.19, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 7.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $54.66M | 5.12 | 11.87% | 5.63% | -9.29% | -4.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $43.26M | 28.38 | 3.45% | ― | -5.26% | -11.19% | |
53 Neutral | $438.04M | -138.01 | -30.86% | ― | -5.93% | -215.06% | |
52 Neutral | $90.65M | 270.70 | 0.17% | ― | 13.08% | -55.05% | |
44 Neutral | $19.09M | -7.71 | -122.90% | ― | -55.89% | -127.24% |
* Technology Sector Average
DSWL
Deswell
3.43
0.91
35.95%
LGL
LGL Group
6.93
-0.03
-0.43%
MIND
MIND Technology
4.76
-3.34
-41.23%
REFR
Research Frontiers
0.55
-1.02
-65.16%
FCUV
Focus Universal
3.52
-160.08
-97.85%
OPTX
Syntec Optics Holdings
10.88
9.50
688.04%
Deswell Corporate Events
Deswell Posts Lower Fiscal 2026 Sales but Boosts Margins and Declares Special Dividend
Jun 17, 2026
On June 17, 2026, Deswell Industries reported unaudited results for the second half and full fiscal year ended March 31, 2026, showing net sales down 13.4% to $28.1 million in the period and 9.3% to $61.3 million for the year, with segment weaknes...
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.