Deswell IndustriesDSWL +5.58%64 ROE % 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 5 warning signs investors should review. Among 2,423 Hardware companies, Deswell Industries ranks better than 70.28% on this metric.
The historical rank and industry rank for Deswell Industries's ROE % or its related term are showing as below:
DSWL'
s ROE % 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 ROE % was 11.35%. The lowest was -1.61%. And the median was 8.13%.
DSWL's ROE % is ranked better than 70.28% of 2423
companies
in the Hardware industry
Industry Median: 4.61
vs DSWL: 9.98
Deswell Industries (NAS:DSWL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Deswell Industries ROE % Related Terms
Deswell Industries ROE % Historical Data
* Premium members only.
The historical data trend for Deswell Industries's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Deswell Industries's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Deswell Industries (DSWL) has a ROE % of 14.31% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total 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 #720 out of 2423 companies in the Hardware industry, placing it in the top 29.7%.
Is Deswell Industries' ROE % too high?
Deswell Industries' current ROE % of 14.31% is 76% above median its 10-year median of 8.13. The Hardware industry median ROE % is 4.61. Deswell Industries' value of 14.31% is 210.4% above this industry median. Based on the distribution chart, Deswell Industries ranks #720 out of 2423 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' ROE % compare to WBX and HOLO?
According to the Hardware industry distribution chart, Deswell Industries ranks #720 out of 2423 companies for ROE %. This puts Deswell Industries in the upper half of its industry. The industry median ROE % is 4.61. Deswell Industries' value of 14.31% is 210.4% above this benchmark. While the company's 10-year median is 8.13 vs. the industry median of 4.61, 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 ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deswell Industries's current ROE % of 14.31% is 210.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Deswell Industries and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current ROE % 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 $3.88 — trading 78.8% above its estimated fair value. The current ROE % is 14.31%, which is 76% above median its 10-year median of 8.13 and 210.4% above the Hardware industry median of 4.61. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Deswell Industries (DSWL), the current ROE % 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 $3.88 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:
ROE %: 14.31% (76% above median its 10-year median of 8.13)
GF Value™: $2.17 vs. price of $3.88 (78.8% above fair value)
Industry Position: 210.4% above the Hardware median (#720 of 2423)
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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