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Upturn AI Summary - About
Deswell Industries Inc(DSWL)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DSWL
10/30/2026: DSWL (1-star) is currently NOT-A-BUY. Pass it for now.
Deswell Industries Inc is an electronic manufacturing services company specializing in precision plastic molding and electronics assembly. While it has established deep, long-term relationships with original equipment manufacturers, it faces significant risks from customer concentration and intense competition from much larger, global manufacturing players. The company’s primary investment story centers on its lean operational model and potential for steady, cash-flow-driven returns rather than high-growth momentum. Investors should monitor its ability to navigate rising regional labor costs and maintain its existing client base. This stock may suit value-oriented investors who prioritize capital preservation and are comfortable with the inherent risks of a smaller, niche manufacturing player.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | The company exhibits slow revenue growth and operates in a mature, highly competitive manufacturing segment. |
| Momentum investor | Weak fit | The stock lacks the significant sustained upward price action typically required for momentum-based strategies. |
| Value investor | Mixed fit | Valuation may be attractive relative to assets, but the lack of strong earnings growth limits upside potential. |
| Dividend investor | Mixed fit | Dividend payments are historical, but future payouts are dependent on the volatility of operational cash flows. |
| Low-risk investor | Weak fit | Small-cap manufacturing stocks often carry higher operational and geopolitical risks compared to larger, diversified entities. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | Small market capitalization and lower trading volumes can lead to significant share price fluctuations. |
| Valuation risk | Medium | While the stock may look cheap, the limited growth prospects and potential for earnings compression present valuation hurdles. |
| Competition risk (EMS giants) | High | Large-scale competitors can leverage economies of scale that Deswell cannot match in global pricing or service breadth. |
| Business quality | Medium | The business is dependent on thin-margin contract manufacturing, which is sensitive to input cost inflation and customer churn. |
| Dividend income | Medium | Dividends are not guaranteed and fluctuate based on the company's ability to maintain profitability in a competitive market. |
| Execution risk | Medium | Managing production costs in China while meeting international quality standards requires consistent operational excellence. |
Price Behavior
Rolling Over
The price momentum is slowing down and beginning to turn downward.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 27.69% | Avg. Invested days 43 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/30/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 46.07M USD | Price to earnings Ratio 4.33 | 1Y Target Price 7.75 |
Price to earnings Ratio 4.33 | 1Y Target Price 7.75 | ||
Volume (30-day avg) 6.8K shares | Beta 0.53 | 52 Weeks Range 2.71 - 3.75 | Updated Date 11/01/2026 |
52 Weeks Range 2.71 - 3.75 | Updated Date 11/01/2026 | ||
Dividends yield (FY) 6.90% | Basic EPS (TTM) 0.67 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Injection Molding | Plastic parts for consumer electronics and other household products. | The company earns money by turning raw plastic pellets into finished parts for other companies' products. |
| Electronic Assembly | Turnkey assembly of PCBs and finished electronic units. | Revenue comes from charging fees to assemble complex electronic devices for various clients. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 4.33 | Forward PE 96.15 | Enterprise Value -36.27M | Price to Sales(TTM) 0.75 |
Enterprise Value -36.27M | Price to Sales(TTM) 0.75 | ||
Enterprise Value to Revenue 0.03 | Enterprise Value to EBITDA 0.51 | Shares Outstanding 15.89M | Shares Floating 4.54M |
Shares Outstanding 15.89M | Shares Floating 4.54M | ||
Percent Insiders 71.26 | Percent Institutions 6.04 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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