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Deswell Industries

DB:DW2
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DW2
DB
$48M
Market Cap
  1. Home
  2. DE
  3. Tech
Company description

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The last earnings update was 153 days ago. More info.


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DW2 Share Price and Events
7 Day Returns
-2%
DB:DW2
2.1%
DE Electronic
2.3%
DE Market
1 Year Returns
3.8%
DB:DW2
-2.2%
DE Electronic
-7.2%
DE Market
DW2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Deswell Industries (DW2) -2% -3.2% -4% 3.8% 85.4% 71.2%
DE Electronic 2.1% 3.5% 22.1% -2.2% 95% 88.8%
DE Market 2.3% 3.1% 8.8% -7.2% 9.3% 12.3%
1 Year Return vs Industry and Market
  • DW2 outperformed the Electronic industry which returned -2.2% over the past year.
  • DW2 outperformed the Market in Germany which returned -7.2% over the past year.
Price Volatility
DW2
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Deswell Industries's competitors could be found in our database.

Value

 Is Deswell Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Deswell Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Deswell Industries.

DB:DW2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:DW2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 26.01%) (0%))
1.045
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.045 * 5.96%)
6.46%

Discounted Cash Flow Calculation for DB:DW2 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Deswell Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:DW2 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.46%)
2019 0.83 Est @ -26.11% 0.78
2020 0.68 Est @ -18.21% 0.60
2021 0.59 Est @ -12.68% 0.49
2022 0.54 Est @ -8.81% 0.42
2023 0.51 Est @ -6.1% 0.37
2024 0.48 Est @ -4.2% 0.33
2025 0.47 Est @ -2.87% 0.30
2026 0.46 Est @ -1.94% 0.28
2027 0.46 Est @ -1.29% 0.26
2028 0.45 Est @ -0.83% 0.24
Present value of next 10 years cash flows $4.07
DB:DW2 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $0.45 × (1 + 0.23%) ÷ (6.46% – 0.23%)
$7.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7.27 ÷ (1 + 6.46%)10
$3.89
DB:DW2 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4.07 + $3.89
$7.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7.96 / 15.89
$0.5
DB:DW2 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:DW2 represents 0.85609x of NasdaqGM:DSWL
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.85609x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 0.50 x 0.85609
€0.43
Value per share (EUR) From above. €0.43
Current discount Discount to share price of €2.56
= -1 x (€2.56 - €0.43) / €0.43
-497.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Deswell Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Deswell Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Deswell Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:DW2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.33
NasdaqGM:DSWL Share Price ** NasdaqGM (2019-04-17) in USD $3
Germany Electronic Industry PE Ratio Median Figure of 14 Publicly-Listed Electronic Companies 20.96x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Deswell Industries.

DB:DW2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:DSWL Share Price ÷ EPS (both in USD)

= 3 ÷ 0.33

9.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deswell Industries is good value based on earnings compared to the DE Electronic industry average.
  • Deswell Industries is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Deswell Industries's expected growth come at a high price?
Raw Data
DB:DW2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
19.3%per year
Germany Electronic Industry PEG Ratio Median Figure of 12 Publicly-Listed Electronic Companies 2x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Deswell Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Deswell Industries's assets?
Raw Data
DB:DW2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $5.25
NasdaqGM:DSWL Share Price * NasdaqGM (2019-04-17) in USD $3
Germany Electronic Industry PB Ratio Median Figure of 20 Publicly-Listed Electronic Companies 2.48x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.87x
DB:DW2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:DSWL Share Price ÷ Book Value per Share (both in USD)

= 3 ÷ 5.25

0.57x

* Primary Listing of Deswell Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deswell Industries is good value based on assets compared to the DE Electronic industry average.
X
Value checks
We assess Deswell Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Deswell Industries has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Deswell Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Deswell Industries, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Deswell Industries expected to grow at an attractive rate?
  • Deswell Industries's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Deswell Industries's earnings growth is expected to exceed the Germany market average.
  • Unable to compare Deswell Industries's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:DW2 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:DW2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 19.3%
Germany Electronic Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Electronic Industry Revenue Growth Rate Market Cap Weighted Average 7.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:DW2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:DW2 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 66 3 5
2018-06-30 63 4 6
2018-03-31 61 6 6
2017-12-31 57 3 5
2017-09-30 54 0 4
2017-06-30 49 0 3
2017-03-31 45 -1 1
2016-12-31 41 2 0
2016-09-30 42 3 -1
2016-06-30 44 3 -3
2016-03-31 45 1 -5
2015-12-31 44 -2 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Deswell Industries's earnings are expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Deswell Industries is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:DW2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Deswell Industries Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DW2 Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.33
2018-06-30 0.36
2018-03-31 0.39
2017-12-31 0.33
2017-09-30 0.27
2017-06-30 0.18
2017-03-31 0.09
2016-12-31 -0.01
2016-09-30 -0.05
2016-06-30 -0.22
2016-03-31 -0.31
2015-12-31 -0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Deswell Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Deswell Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Deswell Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Deswell Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Deswell Industries's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Deswell Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Deswell Industries's 1-year earnings growth is less than its 5-year average (21.8% vs 64.6%)
  • Deswell Industries's earnings growth has exceeded the DE Electronic industry average in the past year (21.8% vs 18.1%).
Earnings and Revenue History
Deswell Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Deswell Industries Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DW2 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 65.70 5.28 9.14
2018-06-30 63.19 5.73 8.97
2018-03-31 60.67 6.19 8.81
2017-12-31 57.16 5.26 8.79
2017-09-30 53.65 4.33 8.76
2017-06-30 49.08 2.86 8.81
2017-03-31 44.52 1.38 8.86
2016-12-31 40.99 -0.11 9.16
2016-09-30 41.55 -0.75 9.22
2016-06-30 43.61 -3.48 9.15
2016-03-31 44.57 -4.93 9.12
2015-12-31 44.28 -3.42 8.71
2015-09-30 42.61 -4.24 9.05
2015-06-30 40.43 -3.57 9.40
2015-03-31 38.08 -2.46 9.12
2014-12-31 37.17 -5.53 9.23
2014-09-30 37.06 -5.82 9.28
2014-06-30 38.74 -5.35 9.63
2014-03-31 40.93 -7.08 10.26
2013-12-31 43.23 -6.37 11.14
2013-09-30 46.27 -5.17 10.94
2013-06-30 50.71 -3.75 10.80
2013-03-31 53.38 -1.54 10.71
2012-12-31 56.76 -0.71 10.98
2012-09-30 59.23 -0.39 11.38
2012-06-30 60.95 -1.50 11.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Deswell Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Deswell Industries used its assets less efficiently than the DE Electronic industry average last year based on Return on Assets.
  • Deswell Industries has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Deswell Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Deswell Industries has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Deswell Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Deswell Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Deswell Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Deswell Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Deswell Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Deswell Industries has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Deswell Industries Company Filings, last reported 6 months ago.

DB:DW2 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 83.40 0.00 37.84
2018-06-30 83.40 0.00 37.84
2018-03-31 81.28 0.00 37.79
2017-12-31 81.28 0.00 37.79
2017-09-30 78.76 0.00 29.68
2017-06-30 78.76 0.00 29.68
2017-03-31 76.20 0.00 29.83
2016-12-31 76.20 0.00 29.83
2016-09-30 76.97 0.00 32.99
2016-06-30 76.97 0.00 32.99
2016-03-31 76.81 0.00 30.90
2015-12-31 78.54 0.00 30.05
2015-09-30 79.41 0.00 31.94
2015-06-30 82.38 0.00 33.88
2015-03-31 84.06 0.00 35.72
2014-12-31 85.43 0.00 38.10
2014-09-30 86.55 0.00 38.28
2014-06-30 88.87 0.00 40.32
2014-03-31 89.61 0.00 41.48
2013-12-31 93.45 0.00 41.88
2013-09-30 96.20 0.00 43.86
2013-06-30 98.50 0.00 46.50
2013-03-31 101.58 0.00 48.47
2012-12-31 104.76 0.00 47.41
2012-09-30 105.96 0.00 42.99
2012-06-30 105.73 0.00 45.69
  • Deswell Industries has no debt.
  • Deswell Industries has not taken on any debt in the past 5 years.
  • Deswell Industries has no debt, it does not need to be covered by operating cash flow.
  • Deswell Industries has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Deswell Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Deswell Industries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Deswell Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.01%
Current annual income from Deswell Industries dividends.
If you bought €2,000 of Deswell Industries shares you are expected to receive €80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Deswell Industries's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Deswell Industries's dividend is above the markets top 25% of dividend payers in Germany (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:DW2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Germany Electronic Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 1.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:DW2 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-15 0.120 3.944
2018-06-12 0.040 1.192
2017-11-16 0.000 0.000
2017-06-12 0.140 5.575
2016-11-17 0.140 7.528
2016-07-27 0.140 8.055
2016-06-24 0.140 8.930
2016-03-11 0.140 8.637
2015-11-11 0.140 10.358
2015-09-04 0.140 9.303
2015-07-28 0.140 8.071
2015-06-22 0.140 7.740
2015-02-13 0.140 7.514
2015-01-08 0.200 10.703
2014-08-22 0.200 9.524
2014-07-11 0.200 9.309
2014-06-10 0.200 9.543
2014-02-25 0.200 9.360
2013-11-13 0.200 8.394
2013-08-30 0.200 7.974
2013-06-13 0.200 7.981
2012-11-16 0.200 7.838
2012-08-15 0.200 7.379
2012-06-18 0.200 7.375
2012-03-07 0.080 3.201
2011-11-30 0.080 3.743
2011-09-08 0.120 4.927
2011-06-29 0.200 7.108
2011-03-10 0.200 6.683
2010-12-15 0.000 0.000
2010-09-09 0.000 0.000
2010-06-23 0.200 5.651
2010-03-02 0.000 0.000
2009-12-03 0.400 9.811
2009-09-10 0.000 0.000
2009-04-20 0.160 5.094

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Deswell Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Deswell Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Deswell Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Deswell Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Deswell Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Edward So
AGE 45
TENURE AS CEO 5.3 years
CEO Bio

Mr. Kin Chung So, also known as Edward has been the Chief Executive Officer at Deswell Industries, Inc. since December 2, 2013. Mr. So has been in the electronic manufacturing industry internationally and in China for more than 15 years and has been with Deswell for 8 years. He served as Managing Director of the electronics division at Deswell. Previously, Mr. So spent five years at Peavey Electronics in increasing roles of responsibility and was employed at HSBC. Mr. So holds a Bachelor's degree in Electrical and Electronic Engineering from the University of Hong Kong, and a Master's in Business Administration from Royal Holloway, University of London.

CEO Compensation
  • Insufficient data for Edward to compare compensation growth.
  • Insufficient data for Edward to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team

Edward So

TITLE
Chief Executive Officer
AGE
45
TENURE
5.3 yrs

Herman Wah

TITLE
Chief Financial Officer
AGE
40
TENURE
8 yrs

Chin Li

TITLE
Executive Director of Manufacturing & Administration - Plastic Operations and Director
AGE
72

Katsuhiro Yamane

TITLE
Senior Executive Director for Electronic & Metallic Operations and Group Purchasing Director
Board of Directors Tenure

Average tenure and age of the Deswell Industries board of directors in years:

19.3
Average Tenure
72
Average Age
  • The average tenure for the Deswell Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Richard Lau

TITLE
Chairman of the Board
AGE
73
TENURE
32.3 yrs

Chin Li

TITLE
Executive Director of Manufacturing & Administration - Plastic Operations and Director
AGE
72
TENURE
32.3 yrs

Allen Cham

TITLE
Non-Executive Director
AGE
71
TENURE
15.7 yrs

Hung-Hum Leung

TITLE
Non-Executive Director
AGE
72
TENURE
19.3 yrs

Wing-Ki Hui

TITLE
Non-Executive Director
AGE
72
TENURE
14.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Oct 18 Buy Pui Lau Individual 28. Aug 18 18. Oct 18 169,007 €2.96 €493,056
25. Jul 18 Buy Pui Lau Individual 14. Jun 18 17. Jul 18 98,536 €2.91 €279,538
X
Management checks
We assess Deswell Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Deswell Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. It produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; and parts for electrical products, such as air-conditioning and ventilators, as well as parts for audio equipment and cases, and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. In addition, it provides electronic products that consist of audio equipment, including digital audio workstations, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; home theatre audio products, such as 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; printed circuit board assemblies; and telecommunication products comprising VoIP keysets for business communications. The company sells its products primarily in the People’s Republic of China, the United States, the United Kingdom, Norway, Holland, Hong Kong, and Canada. Deswell Industries, Inc. was founded in 1987 and is based in Macau.

Details
Name: Deswell Industries, Inc.
DW2
Exchange: DB
Founded: 1987
$42,100,259
15,885,239
Website: http://www.deswell.com
Address: Deswell Industries, Inc.
10B Edificio Associacao Industrial De Macau,
No. 32-36 Rua do Comandante Mata e Oliveira,
Macau,
Macau
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM DSWL Common Shares Nasdaq Global Market US USD 20. Jul 1995
DB DW2 Common Shares Deutsche Boerse AG DE EUR 20. Jul 1995
Number of employees
Current staff
Staff numbers
1,338
Deswell Industries employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/17 22:20
End of day share price update: 2019/04/17 00:00
Last earnings filing: 2018/11/15
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.