Deswell (DSWL) AI Stock Analysis

• Market Cap: $52.43M
• Dividend Yield: 5.97%
• Average Volume (3M): 22.20K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.25
• Revenue Growth: -2.53%
• EPS Growth: 44.48%
• Country: US
• Employees: 921
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.31
• Shares Outstanding: 15,935,239
• 10 Day Avg. Volume: 20,271
• 30 Day Avg. Volume: 22,201
• PEG Ratio: 0.07
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 2.85
• Enterprise Value/Market Cap: -0.72
• Enterprise Value/Revenue: -0.56
• Enterprise Value/Gross Profit: -2.78
• Enterprise Value/Ebitda: -9.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ―

Deswell's stock score reflects its strong financial foundation, characterized by excellent profitability margins, no debt, and solid cash flow management. The low P/E ratio and high dividend yield highlight its attractive valuation. However, technical indicators suggest a neutral to slightly bearish outlook, which moderates the overall score.

Deswell Business Overview & Revenue Model

Company Description

Deswell Industries, Inc. (DSWL) is a manufacturer and supplier of high-quality injection-molded plastic parts and electronic products. The company operates within the manufacturing sector, with a focus on providing precision plastic components and electronic assemblies for a variety of industries, including automotive, consumer electronics, and telecommunications. Deswell is known for its commitment to quality and innovation, offering a comprehensive range of services from product design and development to assembly and production.

How the Company Makes Money

Deswell Industries generates revenue through the manufacturing and sale of injection-molded plastic components and electronic products. The company's key revenue streams include contracts with original equipment manufacturers (OEMs) and other businesses that require custom plastic parts and electronic assemblies. Deswell leverages its manufacturing facilities in China to produce cost-effective and high-quality products, which are then sold to clients across various industries. Partnerships with major companies in the automotive, consumer electronics, and telecommunications sectors significantly contribute to Deswell's earnings, as these industries consistently demand precision components and assemblies. Additionally, Deswell's ability to offer a complete range of services, from design to final production, enhances its value proposition and attracts a diverse customer base.

Deswell Financial Statement Overview

Summary

Deswell exhibits strong financial performance with excellent profitability margins and a robust balance sheet characterized by no debt and high equity. Despite a decline in revenue, the company shows solid cash flow management and profitability, reflecting financial resilience.

Income Statement

Deswell has shown strong performance in terms of net profit margin and EBIT margin, with the latest figures being 11.11% and 5.45% respectively. The company also experienced a significant improvement in net income from $2.06 million in 2023 to $7.71 million in 2024. However, the revenue growth rate was negative at -10.53%, which indicates a decline in sales, affecting overall revenue growth.

Balance Sheet

Deswell exhibits a robust equity position with a debt-to-equity ratio of 0, indicating no reliance on debt financing. The return on equity is also strong at 8.18%, showcasing efficient use of equity capital. The company's equity ratio stands at 84.75%, reflecting a stable financial foundation with a high proportion of assets financed by shareholders' equity.

Cash Flow

The cash flow statement reveals a healthy operating cash flow to net income ratio of 1.71, suggesting strong cash generation relative to net income. Free cash flow has grown by 5.09% from the previous year, which is a positive sign of cash flow health. Additionally, the free cash flow to net income ratio is a robust 1.66, indicating efficient cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.61M	67.61M	69.37M	77.54M	85.49M	64.89M
Gross Profit	13.64M	13.64M	13.90M	12.84M	13.95M	13.17M
EBITDA	3.95M	3.95M	9.34M	4.83M	9.80M	10.46M
Net Income	11.14M	11.14M	7.71M	2.06M	8.23M	8.23M
Balance Sheet
Total Assets	120.21M	120.21M	111.08M	110.38M	115.54M	107.86M
Cash, Cash Equivalents and Short-Term Investments	75.50M	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	18.09M	18.09M	16.91M	20.73M	24.63M	22.17M
Stockholders Equity	102.12M	102.12M	94.17M	89.65M	90.91M	85.69M
Cash Flow
Free Cash Flow	13.20M	13.20M	12.83M	12.21M	-1.69M	2.75M
Operating Cash Flow	13.53M	13.53M	13.21M	13.00M	-183.00K	3.30M
Investing Cash Flow	-2.39M	2.04M	-16.43M	-1.11M	-3.43M	-2.72M
Financing Cash Flow	-4.78M	-3.19M	-3.19M	-3.19M	-3.14M	-2.86M

Deswell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.35 is below the 20-day moving average (MA) of 3.49, below the 50-day MA of 3.81, and above the 200-day MA of 2.81, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 29.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSWL.

Deswell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSWL	78 Outperform	$52.43M	4.71	11.35%	5.97%	-2.53%	44.48%
MIND	70 Outperform	$92.52M	24.15	16.05%	―	27.70%	―
LGL	64 Neutral	$32.06M	148.55	0.56%	―	26.84%	-45.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OPTX	53 Neutral	$88.61M	-55.94	-13.59%	―	-32.52%	-218.84%
REFR	47 Neutral	$58.88M	-33.46	-73.36%	―	-4.46%	-17.79%