Deswell Industries (FRA:DW2) ROCE %: 4.29% (As of Sep. 2025)

What is Deswell Industries ROCE %?

Deswell Industries FRA:DW2 -4.85% 62 ROCE % is 4.29% as of Sep. 2025. GuruFocus rates FRA:DW2 with a GF Score™ of 62/100 and a GF Value™ of €1.76 (Significantly Overvalued). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Deswell Industries's annualized ROCE % for the quarter that ended in Sep. 2025 was 4.29%.

Deswell Industries (FRA:DW2) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Deswell Industries ROCE % Related Terms

Deswell Industries ROCE % Historical Data

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The historical data trend for Deswell Industries's ROCE % 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.

Deswell Industries ROCE % Chart

Deswell Industries Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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3.30

2.35

3.57

2.47

1.98

Deswell Industries Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
ROCE %	Get a 7-Day Free Trial															2.60	2.98	1.95	4.29	-0.35

62GF Score

Deswell Industries Inc FRA:DW2

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Deswell Industries ROCE % Calculation

Deswell Industries's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	1.873	/	( ( (111.192 - 16.388)	+	(112.419 - 17.614) )	/ 2 )
	=	1.873	/	( (94.804	+	94.805)	/ 2 )
	=	1.873	/	94.8045
	=	1.98 %

Deswell Industries's ROCE % of for the quarter that ended in Sep. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2025 )		(Q: Mar. 2025 )		(Q: Sep. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2025 )		(Q: Mar. 2025 )		(Q: Sep. 2025 )
	=	4.014	/	( ( (111.192 - 16.388)	+	(109.236 - 16.917) )	/ 2 )
	=	4.014	/	( ( 94.804	+	92.319 )	/ 2 )
	=	4.014	/	93.5615
	=	4.29 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2025) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 4.29% mean?

Deswell Industries (FRA:DW2) has a ROCE % of 4.29% as of Sep. 2025.

Is Deswell Industries' ROCE % too high?

Deswell Industries' current ROCE % is 4.29%. The Hardware industry median ROCE % is 5.82. Deswell Industries' value of 4.29% is 26.3% below this industry median. Overall, Deswell Industries has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Deswell Industries' ROCE % compare to WBX and HOLO?

Deswell Industries' ROCE % of 4.29% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.82. Deswell Industries' value of 4.29% is 26.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Hardware company?

The median ROCE % among Hardware companies is 5.82, based on 2,445 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deswell Industries's current ROCE % of 4.29% is 26.3% below 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current ROCE % is 4.29%. 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 €3.14 — trading 78.4% above its estimated fair value. The current ROCE % is 4.29% and 26.3% below the Hardware industry median of 5.82. Deswell Industries' overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Deswell Industries (FRA:DW2), the current ROCE % is 4.29% 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 (FRA:DW2) Overvalued in 2026?

Based on GuruFocus' analysis, Deswell Industries stock appears to be overvalued. The current stock price of €3.14 is trading 78.4% above its estimated GF Value™ of €1.76. GuruFocus considers Deswell Industries to be Significantly Overvalued.

Key valuation signals for FRA:DW2:

ROCE %: 4.29%
GF Value™: €1.76 vs. price of €3.14 (78.4% above fair value)
GF Score™: 62/100 with 7 warning signs
Industry Position: 26.3% below the Hardware median

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 Business Description

Industry Technology Hardware

Comparable Companies WBX HOLO IEHC ELTK DAIO NEON REFR LINK WETH GAUZ TPE:2308 APH GLW TPE:2317 TSE:6981 XKRX:009150 SZSE:002475 TEL TPE:2383 SZSE:002384

Other Exchanges DSWL:USA

Address 10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC

Website https://www.deswell.com

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.

62GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.14

Price

€1.76

GF Value

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