Deswell IndustriesDSWL +2.03%65 Interest Coverage is No Debt (1) as of Sep. 2025, which is 100% below its 10-year median of 10,000.00. GuruFocus rates DSWL with a GF Score™ of 65/100 and a GF Value™ of $2.17 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,673 Hardware companies, Deswell Industries ranks better than 99.58% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Deswell Industries's
Operating Income
for the
six
months ended in Sep. 2025 was $2.36 Mil. Deswell Industries's Interest Expense for the
six
months ended in Sep. 2025 was $0.00 Mil.
Deswell Industries has no debt.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Deswell Industries Inc has no debt.
(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
The historical rank and industry rank for Deswell Industries's Interest Coverage or its related term are showing as below:
DSWL'
s Interest Coverage Range Over the Past 10 Years
Min: No Debt Med: No Debt Max: No Debt
Current: No Debt
DSWL's Interest Coverage is ranked better than 99.58% of 1673
companies
in the Hardware industry
Industry Median: 13.73
vs DSWL: No Debt
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Deswell Industries Interest Coverage Related Terms
Deswell Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Deswell Industries's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DSWL vs WBX, HOLO, IEHC: Interest Coverage Comparison
For the Electronic Components subindustry, Deswell Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
Deswell Industries (DSWL) has a Interest Coverage of No Debt (1) as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Deswell Industries and its competitors. This is 100% below median its historical median of 10,000.00. Over the past decade, Deswell Industries' Interest Coverage has ranged from 10,000.00 to 10,000.00. According to the industry distribution chart, Deswell Industries ranks #7 out of 1673 companies in the Hardware industry, placing it in the top 0.40000000000001%.
Is Deswell Industries' Interest Coverage too high?
Deswell Industries' current Interest Coverage of No Debt (1) is 100% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 10,000.00 to a high of 10,000.00. Based on the distribution chart, Deswell Industries ranks #7 out of 1673 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Deswell Industries has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deswell Industries' Interest Coverage compare to WBX and HOLO?
According to the Hardware industry distribution chart, Deswell Industries ranks #7 out of 1673 companies for Interest Coverage. This places Deswell Industries in the top 0% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.73. Historically, Deswell Industries' own Interest Coverage has ranged from 10,000.00 to 10,000.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,673 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Deswell Industries and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current Interest Coverage is No Debt (1), which is 100% below median its own 10-year median of 10,000.00. 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 (DSWL) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.17, compared to a current price of $3.76 — trading 73.3% above its estimated fair value. The current Interest Coverage is No Debt (1), which is 100% below median its 10-year median of 10,000.00. Deswell Industries' overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Deswell Industries (DSWL), the current Interest Coverage is No Debt (1) as of Sep. 2025. 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 (DSWL) Overvalued in 2026?
Based on GuruFocus' analysis, Deswell Industries stock appears to be overvalued.
The current stock price of $3.76 is trading 73.3% above its estimated GF Value™ of $2.17.
GuruFocus considers Deswell Industries to be Significantly Overvalued.
Key valuation signals for DSWL:
Interest Coverage: No Debt (1) (100% below median its 10-year median of 10,000.00)
GF Value™: $2.17 vs. price of $3.76 (73.3% above fair value)
No single metric tells the full story. See the DSWL 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.
65GF Score
Get the complete analysis for DSWL
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