Deswell Industries Inc. Common Shares (DSWL)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Deswell and think of Graham's cigar-butt idea: statistically cheap, but not obviously precious. The company makes injection-molded plastic parts and assembles electronic products with 854 employees. At the close on 2026-10-13, the stock was $3.19, market cap $54 million, within a 52-week range of $2.84–$4.06. FairStock's calculations show a P/E of 4.76 and P/B of 0.46. The Graham Number is $10.19, implying a 68.69% margin of safety. The 6.27% dividend yield and beta of 0.53 are appealing for an income-minded value investor. But quality is suspect. ROE is 10.05%, yet ROCE is only 1.27%, which tells me the business does not earn much on the capital it employs. The Piotroski F-Score of 1/9 is a red flag, and the Altman Z-Score of 2.87 sits in the gray zone. The FairStock Score is 55/100. I also have no revenue growth or profit growth to lean on, and the Lynch category is none because only 0 years of filed results are available, against a need for 3. That limits my ability to judge the trajectory. A low P/E and P/B plus a large discount to Graham Number could mean the market is overly pessimistic. But low ROCE and a weak Piotroski score suggest this may be a value trap rather than a compounding machine. I would want stronger balance-sheet visibility, improving returns, and several years of filed results before calling this a high-quality bargain. At this price, the numbers offer hope, but the business quality does not yet confirm it.

In plain English: Deswell makes plastic parts and puts together electronic products. The business looks mixed: it earns money and pays a high dividend, but one key financial-strength score is very weak and its returns on capital are low. At $3.19 a share, the stock looks cheap compared with its assets and a conservative value estimate, but the weak quality signals mean it may deserve some of that discount.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer