Deswell Industries, Inc. carries no debt; cash flow comfortably covers obligations.

Deswell Industries, Inc.'s free cash flow has decreased 64.29% from $13.20M last year to $4.71M, signaling decreasing performance

Deswell Industries, Inc.'s debt to equity ratio is 0.00, which means that the company's assets are healthy financed, signaling financial stability.

Deswell Industries, Inc. has insufficient data to evaluate this check.

Deswell Industries, Inc. has a net cash position, so leverage is healthy.

Deswell Industries, Inc. carries no debt; interest obligations are fully covered.

Deswell Industries, Inc.'s profit margin has increased (5.18%) in the last year from 16.47% to 17.33%, signaling increasing performance

Deswell Industries, Inc.'s short-term assets of $106.89M exceed its short-term liabilities of $20.36M

Deswell Industries, Inc.'s return on assets of 8.18% is higher than the 5.00% threshold, indicating efficient asset utilization

Deswell Industries, Inc.'s return on equity of 9.77%, is lower than 15.00%, indicating bad performance

Deswell Industries, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Deswell Industries, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Deswell Industries, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Deswell Industries, Inc. has a free cash flow yield of 9.19%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Deswell Industries, Inc.'s yearly earnings has decreased 4.59% since last year from $11.14M to $10.63M, signaling decreasing performance

Deswell Industries, Inc.'s yearly revenue has decreased 9.29% since last year from $67.61M to $61.33M, signaling decreasing performance

ROIC 1.98% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Deswell Industries, Inc.'s 3-year revenue CAGR of -7.52% is negative, indicating declining revenue over the past 3 years

Deswell Industries, Inc. had revenue growth in only 1 out of 5 years, indicating inconsistent revenue performance

Deswell Industries, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Deswell Industries, Inc. is undervalued relative to its fair value price of 11.86 based on Discounted Cash Flow model

Deswell Industries, Inc. has an earnings yield of 20.68%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Deswell Industries, Inc. is undervalued relative to its fair value price of 3.51 based on EBITDA multiple model

Deswell Industries, Inc. has insufficient data to compute enterprise value.

Deswell Industries, Inc. is overvalued relative to its fair value price of 1.14 based on Earnings Fair Value model

Deswell Industries, Inc. has a PEG-ratio under 1 which is considered undervalued

Deswell Industries, Inc. has a price-to-book ratio of 0.47x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Deswell Industries, Inc. has a price-to-sales ratio of 0.84x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue