NasdaqGM:DSWL

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Deswell Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DSWL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DSWL's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

9.7%

DSWL

0.9%

US Electronic

-0.06%

US Market


1 Year Return

24.9%

DSWL

17.4%

US Electronic

19.0%

US Market

Return vs Industry: DSWL exceeded the US Electronic industry which returned 18.1% over the past year.

Return vs Market: DSWL exceeded the US Market which returned 19.1% over the past year.


Shareholder returns

DSWLIndustryMarket
7 Day9.7%0.9%-0.06%
30 Day20.3%8.8%4.4%
90 Day32.0%18.2%6.3%
1 Year37.5%24.9%18.6%17.4%21.7%19.0%
3 Year32.7%13.9%28.1%24.5%46.4%36.7%
5 Year199.6%129.4%104.8%95.0%91.0%69.9%

Long-Term Price Volatility Vs. Market

How volatile is Deswell Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deswell Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DSWL ($3.29) is trading below our estimate of fair value ($55.39)

Significantly Below Fair Value: DSWL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DSWL is unprofitable, so we can't compare its PE Ratio to the US Electronic industry average.

PE vs Market: DSWL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DSWL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DSWL is good value based on its PB Ratio (0.7x) compared to the US Electronic industry average (2.2x).


Next Steps

Future Growth

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

35.2%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Deswell Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Deswell Industries performed over the past 5 years?

27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSWL is currently unprofitable.

Growing Profit Margin: DSWL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DSWL is unprofitable, but has reduced losses over the past 5 years at a rate of 27.4% per year.

Accelerating Growth: Unable to compare DSWL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DSWL is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-14.1%).


Return on Equity

High ROE: DSWL has a negative Return on Equity (-1.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Deswell Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DSWL's short term assets ($72.1M) exceed its short term liabilities ($18.6M).

Long Term Liabilities: DSWL's short term assets ($72.1M) exceed its long term liabilities ($832.0K).


Debt to Equity History and Analysis

Debt Level: DSWL is debt free.

Reducing Debt: DSWL has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DSWL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DSWL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 59.2% per year.


Next Steps

Dividend

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

5.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DSWL's dividend (5.48%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: DSWL's dividend (5.48%) is in the top 25% of dividend payers in the US market (4.2%)


Stability and Growth of Payments

Stable Dividend: DSWL's dividend payments have been volatile in the past 10 years.

Growing Dividend: DSWL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: DSWL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

20.9yrs

Average board tenure


CEO

Edward So (47 yo)

6.92yrs

Tenure

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...


Board Members

NamePositionTenureCompensationOwnership
Pang Chin
Executive Director of Manufacturing & Administration for Plastic Operations and Director33.83yrsno data8.96%
$ 4.6m
Hung-Hum Leung
Independent Non-Executive Director20.92yrsno datano data
Yau-Nam Cham
Independent Non-Executive Director17.25yrsno datano data
Hon Pui
Chairman of the Board33.83yrsno data56.3%
$ 29.0m
Wing-Ki Hui
Independent Non-Executive Director16.08yrsno datano data

20.9yrs

Average Tenure

74yo

Average Age

Experienced Board: DSWL's board of directors are seasoned and experienced ( 20.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DSWL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Deswell Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deswell Industries, Inc.
  • Ticker: DSWL
  • Exchange: NasdaqGM
  • Founded: 1987
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$51.483m
  • Shares outstanding: 15.92m
  • Website: https://www.deswell.com

Number of Employees


Location

  • Deswell Industries, Inc.
  • 10B Edif. Associacao Industrial De Macau
  • No. 32-36 Rua do Comandante Mata e Olive
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DSWLNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJul 1995
DW2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1995

Biography

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 manufactu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:26
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.