DESWELL INDUSTRIES INC (DSWL) Stock Fundamental Analysis
NASDAQ:DSWL - Nasdaq - VG2506391011 - Common Stock - Currency: USD
DSWL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. DSWL has an excellent financial health rating, but there are some minor concerns on its profitability. DSWL has a valuation in line with the averages, but on the other hand it scores bad on growth. DSWL also has an excellent dividend rating. With these ratings, DSWL could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
DSWL had positive earnings in the past year.
DSWL had a positive operating cash flow in the past year.
DSWL had positive earnings in 4 of the past 5 years.
DSWL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DSWL's Return On Assets of 8.58% is amongst the best of the industry. DSWL outperforms 89.43% of its industry peers.
The Return On Equity of DSWL (10.47%) is better than 74.80% of its industry peers.
The Return On Invested Capital of DSWL (2.63%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DSWL is significantly below the industry average of 8.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.58% | ||
| ROE | 10.47% | ||
| ROIC | 2.63% |
ROA(3y)5.32%
ROA(5y)4.44%
ROE(3y)6.52%
ROE(5y)5.5%
ROIC(3y)2.76%
ROIC(5y)2.42%
1.3 Margins
DSWL has a Profit Margin of 15.47%. This is amongst the best in the industry. DSWL outperforms 93.50% of its industry peers.
DSWL's Profit Margin has improved in the last couple of years.
DSWL has a Operating Margin of 4.94%. This is in the better half of the industry: DSWL outperforms 68.29% of its industry peers.
DSWL's Operating Margin has improved in the last couple of years.
DSWL's Gross Margin of 20.06% is on the low side compared to the rest of the industry. DSWL is outperformed by 65.04% of its industry peers.
In the last couple of years the Gross Margin of DSWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.94% | ||
| PM (TTM) | 15.47% | ||
| GM | 20.06% |
OM growth 3Y10.29%
OM growth 5Y49.37%
PM growth 3Y-4.19%
PM growth 5Y11.47%
GM growth 3Y-0.49%
GM growth 5Y5.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSWL is destroying value.
DSWL has more shares outstanding than it did 1 year ago.
DSWL has more shares outstanding than it did 5 years ago.
There is no outstanding debt for DSWL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.82 indicates that DSWL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.82, DSWL perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
DSWL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.29
WACC8.96%
2.3 Liquidity
DSWL has a Current Ratio of 4.52. This indicates that DSWL is financially healthy and has no problem in meeting its short term obligations.
DSWL has a better Current ratio (4.52) than 78.05% of its industry peers.
DSWL has a Quick Ratio of 3.97. This indicates that DSWL is financially healthy and has no problem in meeting its short term obligations.
DSWL has a better Quick ratio (3.97) than 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.97 |
3. Growth
3.1 Past
DSWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.32%, which is quite impressive.
Measured over the past years, DSWL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.28% on average per year.
DSWL shows a decrease in Revenue. In the last year, the revenue decreased by -5.40%.
The Revenue has been growing slightly by 0.82% on average over the past years.
EPS 1Y (TTM)70.32%
EPS 3Y-1.88%
EPS 5Y12.28%
EPS Q2Q%76.41%
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y2.24%
Revenue growth 5Y0.82%
Sales Q2Q%-6.77%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.57, the valuation of DSWL can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of DSWL indicates a rather cheap valuation: DSWL is cheaper than 99.19% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DSWL to the average of the S&P500 Index (29.35), we can say DSWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSWL indicates a rather cheap valuation: DSWL is cheaper than 98.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.19 | ||
| EV/EBITDA | -12.22 |
4.3 Compensation for Growth
The decent profitability rating of DSWL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.62%, DSWL is a good candidate for dividend investing.
DSWL's Dividend Yield is rather good when compared to the industry average which is at 2.11. DSWL pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, DSWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.62% |
5.2 History
The dividend of DSWL is nicely growing with an annual growth rate of 14.90%!
DSWL has paid a dividend for at least 10 years, which is a reliable track record.
As DSWL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.9%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
30.88% of the earnings are spent on dividend by DSWL. This is a low number and sustainable payout ratio.
The dividend of DSWL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.88%
EPS Next 2YN/A
EPS Next 3YN/A
NASDAQ:DSWL (3/7/2025, 8:20:26 PM)
2.32
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners2.52%
Inst Owner Change22.98%
Ins Owners71.21%
Ins Owner ChangeN/A
Market Cap36.98M
Analysts0
Price TargetN/A
Short Float %0.13%
Short Ratio0.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.62% |
Yearly Dividend0.2
Dividend Growth(5Y)14.9%
DP30.88%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | N/A | ||
| P/S | 0.55 | ||
| P/FCF | 3.19 | ||
| P/OCF | 3.09 | ||
| P/B | 0.37 | ||
| P/tB | 0.37 | ||
| EV/EBITDA | -12.22 |
EPS(TTM)0.65
EY28.02%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.73
FCFY31.34%
OCF(TTM)0.75
OCFY32.34%
SpS4.19
BVpS6.2
TBVpS6.2
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.58% | ||
| ROE | 10.47% | ||
| ROCE | 3.33% | ||
| ROIC | 2.63% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 7.8% | ||
| OM | 4.94% | ||
| PM (TTM) | 15.47% | ||
| GM | 20.06% | ||
| FCFM | 17.34% |
ROA(3y)5.32%
ROA(5y)4.44%
ROE(3y)6.52%
ROE(5y)5.5%
ROIC(3y)2.76%
ROIC(5y)2.42%
ROICexc(3y)6.13%
ROICexc(5y)5.29%
ROICexgc(3y)6.13%
ROICexgc(5y)5.29%
ROCE(3y)3.49%
ROCE(5y)3.06%
ROICexcg growth 3Y17.35%
ROICexcg growth 5Y57.24%
ROICexc growth 3Y17.35%
ROICexc growth 5Y57.24%
OM growth 3Y10.29%
OM growth 5Y49.37%
PM growth 3Y-4.19%
PM growth 5Y11.47%
GM growth 3Y-0.49%
GM growth 5Y5.32%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 24.41% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 248.14% | ||
| Profit Quality | 112.1% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.97 | ||
| Altman-Z | 2.82 |
F-Score7
WACC8.96%
ROIC/WACC0.29
Cap/Depr(3y)52.47%
Cap/Depr(5y)42.91%
Cap/Sales(3y)1.11%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.32%
EPS 3Y-1.88%
EPS 5Y12.28%
EPS Q2Q%76.41%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y2.24%
Revenue growth 5Y0.82%
Sales Q2Q%-6.77%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.86%
EBIT growth 3Y12.77%
EBIT growth 5Y50.59%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y393.11%
FCF growth 3Y67.08%
FCF growth 5Y58.31%
OCF growth 1Y256.96%
OCF growth 3Y58.77%
OCF growth 5Y43.51%