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Deswell
(NASDAQ:DSWL)
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Rating:76Outperform
Price Target:
$3.50
▲(12.18% 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 balance sheet
The absence of debt materially reduces solvency and refinancing risk while preserving financial flexibility. A large equity base gives Deswell capacity to withstand demand volatility, fund operations, and maintain shareholder distributions.
Negative Factors
Multi-year revenue contraction
Several consecutive years of lower sales indicate a persistent demand or customer-volume challenge rather than a single temporary setback. Continued contraction could reduce factory utilization, weaken operating leverage, and constrain future earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
The absence of debt materially reduces solvency and refinancing risk while preserving financial flexibility. A large equity base gives Deswell capacity to withstand demand volatility, fund operations, and maintain shareholder distributions.
Read all positive factors
Deswell (DSWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.69M
Dividend Yield6.15%
Average Volume (3M)22.20K
Price to Earnings (P/E)4.5
Beta (1Y)0.26
Revenue Growth-9.29%
EPS Growth-4.55%
CountryUS
Employees854
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.67
Shares Outstanding15,885,239
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 Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
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 for customers and recognizing revenue when it delivers finished goods or completes contracted manufacturing work. Its main revenue stream is plastics injection molding—producing custom plasti...
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
Negative
3.12
Price Trends
3.34
Negative
3.21
Negative
3.19
Negative
Market Momentum
-0.08
Positive
35.95
Neutral
44.72
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 3.12 is below the 20-day moving average (MA) of 3.16, below the 50-day MA of 3.34, and below the 200-day MA of 3.19, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 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 50 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 0 New Risks
Deswell Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $48.69M | 4.48 | 9.77% | 5.30% | -9.29% | -4.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $98.11M | -372.00 | 0.29% | ― | 26.35% | -130.90% | |
55 Neutral | $39.45M | 25.94 | 3.45% | ― | -5.26% | -11.19% | |
44 Neutral | $16.11M | -7.08 | -159.17% | ― | -46.47% | -26.00% | |
41 Neutral | $343.18M | -131.46 | -16.50% | ― | 1.48% | -53.38% |
* Technology Sector Average
DSWL
Deswell
3.00
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425.00%
Deswell Corporate Events
Deswell Files Fiscal 2026 Form 20-F With SEC, Publishes Audited Results
Jul 30, 2026
Deswell Industries, Inc., a Macao-based manufacturer of injection-molded plastics, electronic products and assemblies, and metallic molds for OEMs and contract manufacturers, operates factories in the People’s Republic of China. Its output s...
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.