One-glance verdict
Undervalued
$22.01 our estimate vs market $3.12
86% below our estimate, below the bear case
Fundamentals snapshot
Deswell Industries, Inc.
DSWL · NGM · Technology · Electronic Components
Current price
$3.12
52-week range
$2.84 - $4.07
Market cap
$49.56M
Balance sheet
Healthy
1.50x Concerning
Net cash $82.33M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 10.0% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Reward Trades at 4.7x P/E vs peer median 34.7x (86.6% cheaper).
- Risk Operating margin compressed from 2.7% to 0.2% over 3 years.
What this company does
Deswell Industries, Inc.
Deswell Industries is a manufacturer-for-hire, making the custom plastic parts and assembling the electronic components for other companies' products. Most of its money comes from producing the plastic shells for items like power tools and printers, as well as building complete audio systems and medical devices for bigger brands. This makes Deswell a key part of many global supply chains (the entire journey a product takes from raw materials to the final customer), so its performance can be an indicator of broader manufacturing demand.
How the company got here
Deswell Industries was founded in 1987 and has its roots in Macau. It started as a manufacturer of plastic parts and has since grown into a company that also assembles electronic products for other companies. These other companies are known as original equipment manufacturers (OEMs), who sell the final product to consumers. Deswell's manufacturing operations are located in China, which allows them to produce goods at a lower cost. The company has been publicly traded in the United States since 1995.
What it actually does
Deswell Industries makes plastic parts and assembles electronic products for other companies. Think of them as a behind-the-scenes partner that helps create the things we use every day. For example, they might make the plastic casing for a power tool or assemble the internal electronic components of a professional audio mixer. They work with their customers, who are often well-known brands, to manufacture products to their exact specifications.
Plastic Injection Molding
This part of the business focuses on creating plastic parts for a wide variety of products. This includes things like the plastic shells for phones, printers, and remote controls, as well as parts for power tools, medical devices, and even cars. The process involves injecting melted plastic into a mold to create a specific shape. This segment makes up a smaller portion of the company's overall revenue (the total money it brings in from sales).
Electronic Products Assembling
This is the larger part of Deswell's business, contributing the majority of its revenue. In this segment, the company puts together the electronic guts of various products. This includes professional audio equipment you might see at a concert, like audio mixers and amplifiers, as well as consumer electronics like home audio systems. They handle the complex process of assembling printed circuit boards (the green boards that control how electronic devices work) and can even assemble the entire final product for their customers.
What management is betting on now
Deswell's strategy focuses on being a reliable and cost-effective manufacturing partner for other companies. By offering both plastic molding and electronics assembly, they can provide a more complete solution to their customers. This can help their clients reduce their own costs and get their products to market faster. The company aims to continue serving a diverse range of industries, from consumer electronics to medical and automotive, to avoid being too reliant on any single market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$13.20M
FY2026 Q4
$4.71M
Revenue
$61.33M
Net income
$10.63M
Diluted EPS
0.67
Operating cash flow
$5.20M
Free cash flow
$4.71M
Fetching…
Sources
Revenue
$67.61M
Net income
$11.14M
Diluted EPS
0.70
Operating cash flow
$13.53M
Free cash flow
$13.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.01 vs current price $3.12
Our most-likely fair value is $22.01 a share — about 605.5% above today's price of $3.12, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $82.3M - more cash than debt. Interest coverage 1.5x.
Net debt
$-82.33M
Interest coverage
1.50x
Deswell Industries, Inc.'s profit covers its interest bill about 1.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DSWL
BASELINE
Deswell Industries, Inc.
Total debt $0.00 Interest coverage 1.50x This is the baseline the peer rows are being compared against.
Total debt $131.21M Interest coverage 0.04x -97% vs DSWL Carries about 33.4x less debt cushion than DSWL.
Total debt $17.89M Interest coverage 1.29x -14% vs DSWL Has roughly the same debt cushion as DSWL.
Total debt $1.39M Interest coverage 10.35x +590% vs DSWL Carries about 6.9x more debt cushion than DSWL.
Total debt $133.07M Interest coverage 6.62x +341% vs DSWL Carries about 4.4x more debt cushion than DSWL.
Total debt $291.82M Interest coverage 5.24x +249% vs DSWL Carries about 3.5x more debt cushion than DSWL.
What you should know
The case for and against DSWL
3 Rewards
1 Risk
Rewards
-
Returns 10.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 8/10 years.
-
Trades at 4.7x P/E vs peer median 34.7x (86.6% cheaper).
Risks
-
Operating margin compressed from 2.7% to 0.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
4.66x
Forward P/E
—
P/B
0.45x
P/S
0.81x
EV/EBITDA
-8.14x
PEG ratio
0.89x
Profitability
How much profit each dollar creates
Gross margin
22.4%
Operating margin
0.2%
Net margin
17.3%
ROE
10.0%
ROA
1.3%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
5.25x
Quick ratio
4.61x
Total debt
$0.00
Total cash
$82.33M
Growth
How the business has been compounding
Revenue TTM
$275.65M
Revenue 5Y CAGR
-8.1%
EPS TTM
0.67
EPS 5Y CAGR
72.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$44.94M
Free CF TTM
$4.71M
FCF margin
1.7%
Dividend
Shareholder payout
Yield
6.4%
Payout ratio
29.8%
Last ex-div date
2026-07-02