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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Deswell Industries's Debt-to-Equity or its related term are showing as below:
FRA:DW2's Debt-to-Equity is not ranked *
in the Hardware industry.
Industry Median: 0.27 * Ranked among companies with meaningful Debt-to-Equity only.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Deswell Industries Debt-to-Equity Related Terms
Deswell Industries Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Deswell Industries's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:DW2 vs IEHC, ELTK, HOLO: Debt-to-Equity Comparison
For the Electronic Components subindustry, Deswell Industries's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Deswell Industries Debt-to-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Deswell Industries (FRA:DW2) has a Debt-to-Equity of 0.00 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Deswell Industries and its competitors. According to the industry distribution chart, Deswell Industries ranks #999999 out of 2221 companies in the Hardware industry.
Is Deswell Industries' Debt-to-Equity too high?
Deswell Industries' current Debt-to-Equity is 0.00. Based on the distribution chart, Deswell Industries ranks #999999 out of 2221 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Deswell Industries has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deswell Industries' Debt-to-Equity compare to IEHC and ELTK?
According to the Hardware industry distribution chart, Deswell Industries ranks #999999 out of 2221 companies for Debt-to-Equity. This places Deswell Industries in the lower half of its industry. The industry median Debt-to-Equity is 0.27. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Hardware company?
The median Debt-to-Equity among Hardware companies is 0.27, based on 2,221 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Deswell Industries and its competitors. For the Hardware industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current Debt-to-Equity is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deswell Industries stock overvalued right now?
Based on GuruFocus' analysis, Deswell Industries (FRA:DW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.76, compared to a current price of €2.70 — trading 53.4% above its estimated fair value. The current Debt-to-Equity is 0.00. Deswell Industries' overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Deswell Industries (FRA:DW2), the current Debt-to-Equity is 0.00 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deswell Industries (FRA:DW2) Overvalued in 2026?
Based on GuruFocus' analysis, Deswell Industries stock appears to be overvalued.
The current stock price of €2.70 is trading 53.4% above its estimated GF Value™ of €1.76.
GuruFocus considers Deswell Industries to be Significantly Overvalued.
Key valuation signals for FRA:DW2:
Debt-to-Equity: 0.00
GF Value™: €1.76 vs. price of €2.70 (53.4% above fair value)
No single metric tells the full story. See the FRA:DW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.
66GF Score
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Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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