Deswell Industries, Inc. (DSWL) valuation at a glance
- Price
- $3.10
- Market cap
- $49M
CompaniesDSWL
DSWL
Deswell Industries, Inc.
Technologynet-cashEMSmicrocapdividend
Overview
$3.10+2.6%
Market Cap
$49M
SEC filings
P/E (TTM)
4.6×
SEC filings
Rev Growth YoY
–
SEC filings
Gross Margin
22.4%
SEC filings
FCF Yield
9.6%
Calculated from SEC filings
Fair Value
Not established
yfinance
Conviction
3/5Debt-free Macao-domiciled contract manufacturer trading below net liquid assets, but FY2026 earnings are mostly securities gains.
Research Depth
ScreeningDeep ResearchFull Model
Updated 1d ago
Quality Snowflake
Overall 75/100
Value2/2
Futuren/a
Past3/3
Health2/2
Dividend0/1
Each axis scores the checks for which data is available (filled = pass, hollow = no data). Computed from the sourced metrics on this page, not a third-party rating.
Thesis
Deswell Industries is a Macao-headquartered contract manufacturer reporting in USD with a fiscal year ending March 31, operating an electronics/EMS segment (roughly 85 percent of FY2026 net sales) and an injection-moulded plastics segment, through directly owned subsidiaries in Macao and Dongguan rather than a VIE structure. It screens as deep value because FY2026 cash, time deposits, marketable securities and held-to-maturity instruments totalled 82.3 million USD against a market capitalisation near 49 million USD at the 2026-09-16 close of 3.10 USD, with no short-term or long-term borrowings and a semi-annual dividend held flat at 0.10 USD per share across the last four declarations. The strongest counter-evidence from verification is that the dividend is not earned by operations: FY2026 operating income was 1.981 million USD against 3.188 million USD of dividends paid, the plastics segment ran an operating loss of 1.750 million USD, and the 10.6 million USD net income rests largely on 8.283 million USD of non-operating income including realised and unrealised marks on the securities portfolio. Confirmation would require operating income covering the payout and a halt to the revenue decline, which ran -9.3 percent in FY2026.
Bull Case
Balance sheetThe FY2026 20-F shows 23.062 million USD cash, 19.552 million USD time deposits over three months, 27.874 million USD marketable securities and 11.846 million USD held-to-maturity, totalling 82.334 million USD, with no short-term or long-term borrowings at 2026-03-31.
Capital returnsSemi-annual cash dividends of 0.10 USD per share were declared on 2024-11-15, 2025-06-18, 2025-11-13 and 2026-06-17, with the June 2026 declaration adding a 0.20 USD special dividend.
StructureThe 20-F organisation chart shows direct equity ownership of the Macao and PRC operating subsidiaries with no VIE, and the auditor is BDO China Shu Lun Pan CPAs LLP (PCAOB ID 1818), unchanged per Item 16F.
Bear Case
Earnings qualityFY2026 non-operating income of 8.283 million USD, including 3.574 million USD of realised securities gains and 1.931 million USD of unrealised marks, dominates the 10.627 million USD net income behind the low headline P/E.
DemandFY2026 net sales fell 9.3 percent to 61.3 million USD from 67.6 million USD, with second-half sales down 13.4 percent to 28.1 million USD and the plastics segment down 27.0 percent.
ConcentrationTwo customers accounted for 36.5 percent of FY2026 net sales, Customer B rose from 14.5 percent to 20.0 percent to 22.0 percent across FY2024 to FY2026, three customers held 61.7 percent of receivables, and sales run on purchase orders without long-term contracts.
Key Metrics
Market Cap
$49M
SEC filings
Enterprise Value
–
Calculated from SEC filings
Revenue (TTM)
–
SEC filings
P/E (TTM)
4.6×
SEC filings
Forward P/E
–
yfinance
P/S (TTM)
–
SEC filings
P/B
0.5×
SEC filings
EV/EBITDA
–
Calculated from SEC filings
PEG
–
Calculated from SEC filings
Revenue Growth
–
SEC filings
Gross Margin
22.4%
SEC filings
Operating Margin
0.2%
SEC filings
Net Margin
–
SEC filings
Free Cash Flow
$5M
SEC filings
FCF Yield
9.6%
Calculated from SEC filings
Debt / Equity
–
SEC filings
Current Ratio
5.3×
SEC filings
Short Interest
0.0%
SEC filings
Institutional Own.
6.1%
SEC filings
Insider Own.
71.3%
SEC filings
Shares Out.
15.9M
SEC filings
Float
4.5M
SEC filings
Valuation
Price vs Fair Value
Now $3.10
DCF Summary
DCF awaiting Phase 2+
Discounted cash-flow model is built once research reaches the deep-research stage.
Historical Multiples
Multiple history pending
This section is being deepened.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| DSWL | $49M | 4.6× | 0.8× | – | -13.0% | 22.0% | 17.0% |
| KE | $607M | 22.4× | 0.4× | 6.7× | -2.0% | 8.0% | 2.0% |
| NSYS | $33M | 32.0× | 0.3× | 13.2× | +9.0% | 16.0% | 1.0% |
| KTCC | $26M | – | 0.1× | – | -8.0% | 6.0% | -12.0% |
| BHE | $2.65B | 50.6× | 0.9× | 17.8× | +18.0% | 10.0% | 2.0% |
Financials
Income statement pending
Awaiting source-linked statement data.
Balance sheet pending
Awaiting source-linked statement data.
Cash flow pending
Awaiting source-linked statement data.
Reporting currency is USD. Fiscal year ends March 31, confirmed as 0331 in the EDGAR submissions index for CIK 0000946936. Source filing is the Form 20-F for the year ended 2026-03-31, filed 2026-07-30, supplemented by the results 6-K filed 2026-06-17. Deswell is a foreign private issuer incorporated in the British Virgin Islands with head office in Macao, so it reports annually on Form 20-F and interim on Form 6-K rather than 10-K and 10-Q, and half-year figures in the 6-K are unaudited. Source: 20-F ↗
Catalysts
mid-November 2026
Earningshigh relevance
First-half fiscal 2027 results and semi-annual dividend declaration
The company has announced first-half results together with a 0.10 USD semi-annual dividend in mid-November in prior years, including the 6-K filed 2025-11-13. The declaration tests whether the flat payout continues while operating income sits below the cash cost of the dividend.
mid-June 2027
Earningshigh relevance
Second-half and full-year fiscal 2027 results
The 6-K filed 2026-06-17 carried second-half and full-year FY2026 results plus the special dividend. The equivalent release covers whether the revenue decline of 9.3 percent in FY2026 extends and whether another special dividend accompanies it.
late July 2027
Corporate
Fiscal 2027 Form 20-F
The FY2026 20-F was filed 2026-07-30 and the FY2025 20-F on 2025-07-29, so the annual report is the disclosure point for segment operating results, customer concentration percentages, PFIC status and auditor continuity.
September to October 2026
Corporate
Resumption of 6-K disclosure after a filing gap
The EDGAR index for CIK 946936 shows no filing of any form after 2026-07-30 as of 2026-09-17, so any interim 6-K would be the first new disclosure in roughly seven weeks.
Risks
| Risk | Category | Severity | Probability | Impact on Thesis |
|---|---|---|---|---|
| Dividend is funded from the investment portfolio rather than operations | Financial | High | High | FY2026 operating income of 1.981 million USD did not cover 3.188 million USD of dividends paid; a drawdown in marketable securities would pressure both reported earnings and the payout. |
| Trading liquidity is thin in both directions | Liquidity | High | High | Twenty-session average volume measured 9,755 shares (about 29,700 USD per day) with a median of 6,100 shares (about 18,800 USD); sessions on 2026-09-10 and 2026-09-15 traded 1,100 and 1,800 shares, so exit rather than entry is the binding constraint. |
| Customer concentration is worsening with no long-term contracts | Competition | Medium | Medium | Two customers at 36.5 percent of FY2026 sales and three customers at 61.7 percent of receivables mean one lost programme could remove a large share of revenue and create collection exposure. |
| Continued revenue contraction and a loss-making plastics segment | Operational | Medium | High | Plastics segment operating loss of 1.750 million USD in FY2026 and a 27.0 percent second-half plastics sales decline point to fixed-cost absorption pressure alongside rising minimum wage costs cited in the June 2026 release. |
| PRC-based auditor and foreign private issuer status keep the HFCAA channel structurally open | Regulatory | Medium | Low | The auditor is a mainland-headquartered BDO network firm; Item 16I is marked not applicable so the company is not a Commission-Identified Issuer today, but a future loss of PCAOB inspection access would reopen delisting risk. The 20-F also states the company believes it was a PFIC for the year ended 2026-03-31. |
Technical Snapshot
52-Week Range
–$3.10–
RSI (14)
n/a
insufficient history
50-Day MA
–
insufficient history
200-Day MA
–
insufficient history
Avg Vol (30d)
vs average
Support Levels
Resistance Levels
Technical inputs: SEC filings. See the record-specific source notes for measurement basis.
Ownership & Insider Activity
Institutional Holdersvia Source-linked
Institutional holder details unavailable
This research record does not include a holder-level table.
Insider Activity
Per the FY2026 20-F, Wai Ming Lau beneficially owns 9,841,851 shares, approximately 62.0 percent, and Chin Pang Li approximately 9.0 percent, so insiders hold roughly 71 percent of the 15,885,239 shares outstanding and roughly 4.6 million of them trade freely. The EDGAR index for CIK 946936 shows seven Form 3 initial statements of beneficial ownership filed 2026-03-27 and 2026-04-01 and no Form 4, Form 144 or Schedule 13D/G activity in the trailing twelve months. Shares outstanding declined from 15,935,239 to 15,885,239 between the FY2025 and FY2026 20-F cover pages, about 0.31 percent, with 1,146,571 treasury shares held.
Detailed insider transactions unavailable
This research record does not include a transaction-level table.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| DSWL | $49M | 4.6× | 0.8× | – | -13.0% | 22.0% | 17.0% |
| KE | $607M | 22.4× | 0.4× | 6.7× | -2.0% | 8.0% | 2.0% |
| NSYS | $33M | 32.0× | 0.3× | 13.2× | +9.0% | 16.0% | 1.0% |
| KTCC | $26M | – | 0.1× | – | -8.0% | 6.0% | -12.0% |
| BHE | $2.65B | 50.6× | 0.9× | 17.8× | +18.0% | 10.0% | 2.0% |
Recognizable sector comparables. Source basis: SEC filings; lowest multiple in each column highlighted. Loss-making peers show no P/E.
Research Notes
2026-09-17SEC 6-K
FY2026 results confirm revenue decline and a securities-driven profit
The 6-K filed 2026-06-17 reports FY2026 net sales of 61.3 million USD, down 9.3 percent from 67.6 million USD, and operating income down to 2.0 million USD from 3.3 million USD, while net income of 10.6 million USD compares with 11.1 million USD in FY2025. Second-half non-operating income of 3.1 million USD included a 693,000 USD realised gain on marketable securities and a 1,000,000 USD increase in their fair value. The same release declared a second-half dividend of 0.10 USD per share plus a special dividend of 0.20 USD per share.
2026-09-17Research
Verification corrected the yield basis and the price framing
Second-opinion review of the four dividend 6-Ks found no cut, with four consecutive 0.10 USD semi-annual declarations and identical 3.19 million USD of dividends paid in FY2024, FY2025 and FY2026. It also corrected the yield label: 6.45 percent at 3.10 USD is the regular 0.20 USD annual rate and contains no special, while trailing twelve-month declared cash including the 0.20 USD special is 0.40 USD. The 2026-09-16 close of 3.10 USD sits about 9.2 percent above the 2.84 USD fifty-two-week intraday low rather than at the low.
2026-09-17SEC 20-F
Filing index confirms fiscal year end and foreign private issuer cadence
The EDGAR submissions index for CIK 946936 lists fiscal year end 0331 and SIC 3089, Plastics Products NEC, with annual reports on Form 20-F filed 2026-07-30 and 2025-07-29 and interim disclosure on Form 6-K. No F-3 or S-8 shelf, at-the-market programme, reverse split or listing deficiency notice appears in the trailing twelve-month index.
Sources
Deswell Industries, Inc. valuation questions
What is Deswell Industries, Inc.'s market cap?
Deswell Industries, Inc. (DSWL) has a market capitalization (its market value, often searched as "net worth") of $49M.