Deswell IndustriesDSWL +0.87%64 Return-on-Tangible-Equity is 14.31% as of Sep. 2025, which is 76% above its 10-year median of 8.13. GuruFocus rates DSWL with a GF Score™ of 64/100 and a GF Value™ of $2.17 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,377 Hardware companies, Deswell Industries ranks better than 66.34% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Deswell Industries's annualized net income for the quarter that ended in Sep. 2025 was $15.04 Mil. Deswell Industries's average shareholder tangible equity for the quarter that ended in Sep. 2025 was $105.08 Mil. Therefore, Deswell Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was 14.31%.
The historical rank and industry rank for Deswell Industries's Return-on-Tangible-Equity or its related term are showing as below:
DSWL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.61 Med: 8.13 Max: 11.35
Current: 9.98
During the past 13 years, Deswell Industries's highest Return-on-Tangible-Equity was 11.35%. The lowest was -1.61%. And the median was 8.13%.
DSWL's Return-on-Tangible-Equity is ranked better than 66.34% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs DSWL: 9.98
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Deswell Industries Return-on-Tangible-Equity Related Terms
Deswell Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Deswell Industries's Return-on-Tangible-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.
DSWL vs ELTK, LINK, IEHC: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, Deswell Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.31% mean?
Deswell Industries (DSWL) has a Return-on-Tangible-Equity of 14.31% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Deswell Industries and its competitors. This is 76% above median its historical median of 8.13. According to the industry distribution chart, Deswell Industries ranks #800 out of 2377 companies in the Hardware industry, placing it in the top 33.7%.
Is Deswell Industries' Return-on-Tangible-Equity too high?
Deswell Industries' current Return-on-Tangible-Equity of 14.31% is 76% above median its 10-year median of 8.13. The Hardware industry median Return-on-Tangible-Equity is 5.27. Deswell Industries' value of 14.31% is 171.5% above this industry median. Based on the distribution chart, Deswell Industries ranks #800 out of 2377 companies in the Hardware industry, which is above the industry midpoint. 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' Return-on-Tangible-Equity compare to ELTK and LINK?
According to the Hardware industry distribution chart, Deswell Industries ranks #800 out of 2377 companies for Return-on-Tangible-Equity. This puts Deswell Industries in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.27. Deswell Industries' value of 14.31% is 171.5% above this benchmark. While the company's 10-year median is 8.13 vs. the industry median of 5.27, Deswell Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,377 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deswell Industries's current Return-on-Tangible-Equity of 14.31% is 171.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Deswell Industries and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current Return-on-Tangible-Equity is 14.31%, which is 76% above median its own 10-year median of 8.13. 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 $3.46 — trading 59.4% above its estimated fair value. The current Return-on-Tangible-Equity is 14.31%, which is 76% above median its 10-year median of 8.13 and 171.5% above the Hardware industry median of 5.27. Deswell Industries' overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Deswell Industries (DSWL), the current Return-on-Tangible-Equity is 14.31% 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 $3.46 is trading 59.4% above its estimated GF Value™ of $2.17.
GuruFocus considers Deswell Industries to be Significantly Overvalued.
Key valuation signals for DSWL:
Return-on-Tangible-Equity: 14.31% (76% above median its 10-year median of 8.13)
GF Value™: $2.17 vs. price of $3.46 (59.4% above fair value)
Industry Position: 171.5% above the Hardware median (#800 of 2377)
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.
64GF Score
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