DSWL (Deswell Industries) Moat Score: 4/10 (As of Jul. 02, 2026)


DSWL Deswell Industries Inc DSWL
64 GF Score
Price $3.61
GF Value $2.17
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Deswell Industries Moat Score?

Deswell Industries DSWL -6.72% 64 Moat Score is 4 as of Jul. 02, 2026. GuruFocus rates DSWL with a GF Score™ of 64/100 and a GF Value™ of $2.17 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,470 Hardware companies, Deswell Industries ranks better than 94.66% on this metric.

Deswell Industries has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Deswell Industries has Narrow Moat: Deswell Industries has modest cost advantages due to economies of scale in manufacturing. However, it lacks strong brand strength, significant customer switching costs, or proprietary technology, resulting in a discernible but modest moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Deswell Industries might have Narrow Moat - Discernible but modest moat.

Deswell Industries  (NAS:DSWL) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Deswell Industries Moat Score Related Terms

DSWL vs ELTK, LINK, IEHC: Moat Score Comparison

For the Electronic Components subindustry, Deswell Industries's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Hardware Industry

For the Hardware industry and Technology sector, Deswell Industries's Moat Score distribution charts can be found below:

* The bar in red indicates where Deswell Industries's Moat Score falls into.


DSWL
64GF Score
Deswell Industries Inc DSWL
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Deswell Industries (DSWL) has a Moat Score of 4 as of Jul. 02, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Deswell Industries ranks #132 out of 2470 companies in the Hardware industry, placing it in the top 5.3%.
Is Deswell Industries' Moat Score too high?
Deswell Industries' current Moat Score is 4. Based on the distribution chart, Deswell Industries ranks #132 out of 2470 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 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deswell Industries' Moat Score compare to ELTK and LINK?
According to the Hardware industry distribution chart, Deswell Industries ranks #132 out of 2470 companies for Moat Score. This places Deswell Industries in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Hardware company?
A good Moat Score depends on the Hardware industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Deswell Industries's current Moat Score is 4. 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 $3.61 — trading 66.4% above its estimated fair value. The current Moat Score is 4. Deswell Industries' overall GF Score™ is 64/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Deswell Industries (DSWL), the current Moat Score is 4 as of Jul. 02, 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 (DSWL) Overvalued in 2026?

Based on GuruFocus' analysis, Deswell Industries stock appears to be overvalued. The current stock price of $3.61 is trading 66.4% above its estimated GF Value™ of $2.17. GuruFocus considers Deswell Industries to be Significantly Overvalued.

Key valuation signals for DSWL:

  • Moat Score: 4
  • GF Value™: $2.17 vs. price of $3.61 (66.4% above fair value)
  • GF Score™: 64/100 with 7 warning signs

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 Business Description

Other Exchanges DW2:Germany
Address 10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC
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.
64GF Score

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$3.61
Price
$2.17
GF Value