NasdaqGM:DSWL

Stock Analysis Report

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.

Snowflake

Flawless balance sheet and undervalued.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

DSWL

-0.3%

US Electronic

0.7%

US Market


1 Year Return

-21.5%

DSWL

19.2%

US Electronic

13.7%

US Market

Return vs Industry: DSWL underperformed the US Electronic industry which returned 19.2% over the past year.

Return vs Market: DSWL underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

DSWLIndustryMarket
7 Day-3.8%-0.3%0.7%
30 Day-0.4%4.9%4.7%
90 Day-4.1%13.3%6.1%
1 Year-18.0%-21.5%20.4%19.2%16.2%13.7%
3 Year62.8%43.3%51.3%47.0%48.8%39.2%
5 Year58.3%19.2%80.9%72.0%62.5%44.5%

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 ($2.55) is trading below our estimate of fair value ($15.23)

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


Price To Earnings Ratio

PE vs Industry: DSWL is good value based on its PE Ratio (14.7x) compared to the Electronic industry average (20.8x).

PE vs Market: DSWL is good value based on its PE Ratio (14.7x) compared to the US market (18.2x).


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 (0.5x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSWL's forecast earnings growth (23.1% per year) is above the savings rate (2.7%).

Earnings vs Market: DSWL's earnings (23.1% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if DSWL's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if DSWL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DSWL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Deswell Industries performed over the past 5 years?

63.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSWL has large one-off items impacting its financial results.

Growing Profit Margin: DSWL's current net profit margins (4%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: DSWL has become profitable over the past 5 years, growing earnings by 63.1% per year.

Accelerating Growth: DSWL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DSWL had negative earnings growth (-47.6%) over the past year, making it difficult to compare to the Electronic industry average (56.3%).


Return on Equity

High ROE: DSWL's Return on Equity (3.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Deswell Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DSWL's short term assets ($72.3M) exceeds its short term liabilities ($18.3M)

Long Term Liabilities: DSWL's short term assets ($72.3M) exceeds its long term liabilities (631.0K)


Debt to Equity History and Analysis

Debt Level: DSWL is debt free.

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

Debt Coverage: DSWL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DSWL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DSWL has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DSWL's debt is covered by short term assets.


Next Steps

Dividend

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

5.49%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.4%markettop25%3.6%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DSWL's dividend (5.49%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: DSWL's dividend (5.49%) is in the top 25% of dividend payers in the US market (3.65%)


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: With its reasonably low payout ratio (40.2%), DSWL's dividend payments are well covered by earnings.


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

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

19.9yrs

Average board tenure


CEO

Edward So (46yo)

5.9yrs

Tenure

0

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 Age and Tenure

19.9yrs

Average Tenure

73yo

Average Age

Experienced Board: DSWL's board of directors are seasoned and experienced ( 19.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$146,91924 May 19
Pui Lau
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares48,973
Max PriceUS$3.00

Ownership Breakdown

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


Management Team

  • Chin Li (73yo)

    Executive Director of Manufacturing & Administration for Plastic Operations and Director

    • Tenure: 32.8yrs
  • Herman Wah (41yo)

    Chief Financial Officer

    • Tenure: 8.6yrs
  • Edward So (46yo)

    Chief Executive Officer

    • Tenure: 5.9yrs

Board Members

  • Chin Li (73yo)

    Executive Director of Manufacturing & Administration for Plastic Operations and Director

    • Tenure: 32.8yrs
  • Hung-Hum Leung (73yo)

    Non-Executive Director

    • Tenure: 19.9yrs
  • Allen Cham (72yo)

    Non-Executive Director

    • Tenure: 16.3yrs
  • Richard Lau (74yo)

    Chairman of the Board

    • Tenure: 32.8yrs
  • Wing-Ki Hui (73yo)

    Non-Executive Director

    • Tenure: 15.1yrs

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$40.584m
  • Shares outstanding: 15.92m
  • Website: https://www.deswell.com

Number of Employees


Location

  • Deswell Industries, Inc.
  • 10B Edificio Associacao Industrial De Macau
  • No. 32-36 Rua do Comandante Mata e Oliveira
  • 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 Analysis2019/11/17 23:35
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.