Deswell IndustriesDSWL +5.58%64 ROA % is 12.11% as of Sep. 2025, which is 80% above its 10-year median of 6.72. GuruFocus rates DSWL with a GF Score™ of 64/100 and a GF Value™ of $2.17 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,498 Hardware companies, Deswell Industries ranks better than 83.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Deswell Industries's annualizedNet Income for the quarter that ended in Sep. 2025 was $15.04 Mil.
Deswell Industries's average Total Assets over the quarter that ended in Sep. 2025 was $124.21 Mil. Therefore, Deswell Industries's annualized ROA % for the quarter that ended in Sep. 2025 was 12.11%.
The historical rank and industry rank for Deswell Industries's ROA % or its related term are showing as below:
DSWL'
s ROA % Range Over the Past 10 Years
Min: -1.35 Med: 6.72 Max: 9.63
Current: 8.43
During the past 13 years, Deswell Industries's highest ROA % was 9.63%. The lowest was -1.35%. And the median was 6.72%.
DSWL's ROA % is ranked better than 83.51% of 2498
companies
in the Hardware industry
Industry Median: 2.27
vs DSWL: 8.43
Deswell Industries (NAS:DSWL) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Deswell Industries ROA % Related Terms
Deswell Industries ROA % Historical Data
* Premium members only.
The historical data trend for Deswell Industries's ROA % 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.
For the Electronic Components subindustry, Deswell Industries's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Deswell Industries's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Deswell Industries (DSWL) has a ROA % of 12.11% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Deswell Industries and its competitors. This is 80% above median its historical median of 6.72. According to the industry distribution chart, Deswell Industries ranks #412 out of 2498 companies in the Hardware industry, placing it in the top 16.5%.
Is Deswell Industries' ROA % too high?
Deswell Industries' current ROA % of 12.11% is 80% above median its 10-year median of 6.72. The Hardware industry median ROA % is 2.27. Deswell Industries' value of 12.11% is 433.5% above this industry median. Based on the distribution chart, Deswell Industries ranks #412 out of 2498 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' ROA % compare to WBX and HOLO?
According to the Hardware industry distribution chart, Deswell Industries ranks #412 out of 2498 companies for ROA %. This places Deswell Industries in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 2.27. Deswell Industries' value of 12.11% is 433.5% above this benchmark. While the company's 10-year median is 6.72 vs. the industry median of 2.27, 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 ROA % for a Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,498 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deswell Industries's current ROA % of 12.11% is 433.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Deswell Industries and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current ROA % is 12.11%, which is 80% above median its own 10-year median of 6.72. 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 $3.88 — trading 78.8% above its estimated fair value. The current ROA % is 12.11%, which is 80% above median its 10-year median of 6.72 and 433.5% above the Hardware industry median of 2.27. Deswell Industries' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Deswell Industries (DSWL), the current ROA % is 12.11% 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 $3.88 is trading 78.8% above its estimated GF Value™ of $2.17.
GuruFocus considers Deswell Industries to be Significantly Overvalued.
Key valuation signals for DSWL:
ROA %: 12.11% (80% above median its 10-year median of 6.72)
GF Value™: $2.17 vs. price of $3.88 (78.8% above fair value)
Industry Position: 433.5% above the Hardware median (#412 of 2498)
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
Get the complete analysis for DSWL
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DSWL has been successfully added to your 
