Deswell IndustriesDSWL +2.03%64 Altman Z-Score is 3.77 as of Jun. 28, 2026, which is 15% above its 10-year median of 3.27. 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 2,459 Hardware companies, Deswell Industries ranks better than 52.26% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.77 is strong.
Deswell Industries has a Altman Z-Score of 3.77, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Deswell Industries's Altman Z-Score or its related term are showing as below:
DSWL'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.55 Med: 3.27 Max: 3.77
Current: 3.77
During the past 13 years, Deswell Industries's highest Altman Z-Score was 3.77. The lowest was 2.55. And the median was 3.27.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Deswell Industries Altman Z-Score Related Terms
Deswell Industries Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Deswell Industries's Altman Z-Score 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 WBX, HOLO, IEHC: Altman Z-Score Comparison
For the Electronic Components subindustry, Deswell Industries's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score vs Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Deswell Industries's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.6658
+
1.4
*
0.3531
+
3.3
*
0.079
+
0.6
*
2.9031
+
1.0
*
0.4719
=
3.77
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Deswell Industries (DSWL) has a Altman Z-Score of 3.77 as of Jun. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Deswell Industries and its competitors. This is 15% above median its historical median of 3.27. Over the past decade, Deswell Industries' Altman Z-Score has ranged from 2.55 to 3.77. According to the industry distribution chart, Deswell Industries ranks #1174 out of 2459 companies in the Hardware industry, placing it in the top 47.7%.
Is Deswell Industries' Altman Z-Score too high?
Deswell Industries' current Altman Z-Score of 3.77 is 15% above median its 10-year median of 3.27. Over the past 10 years, this metric has ranged from a low of 2.55 to a high of 3.77. The Hardware industry median Altman Z-Score is 3.59. Deswell Industries' value of 3.77 is 5% above this industry median. Based on the distribution chart, Deswell Industries ranks #1174 out of 2459 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' Altman Z-Score compare to WBX and HOLO?
According to the Hardware industry distribution chart, Deswell Industries ranks #1174 out of 2459 companies for Altman Z-Score. This puts Deswell Industries in the upper half of its industry. The industry median Altman Z-Score is 3.59. Deswell Industries' value of 3.77 is 5% above this benchmark. Historically, Deswell Industries' own Altman Z-Score has ranged from 2.55 to 3.77 over the past decade. While the company's 10-year median is 3.27 vs. the industry median of 3.59, 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 Altman Z-Score for a Hardware company?
The median Altman Z-Score among Hardware companies is 3.59, based on 2,459 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deswell Industries's current Altman Z-Score of 3.77 is 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Deswell Industries and its competitors. For the Hardware industry, the median Altman Z-Score is 3.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deswell Industries's current Altman Z-Score is 3.77, which is 15% above median its own 10-year median of 3.27. 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 $3.76 — trading 73.3% above its estimated fair value. The current Altman Z-Score is 3.77, which is 15% above median its 10-year median of 3.27 and 5% above the Hardware industry median of 3.59. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Deswell Industries (DSWL), the current Altman Z-Score is 3.77 as of Jun. 28, 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 $3.76 is trading 73.3% above its estimated GF Value™ of $2.17.
GuruFocus considers Deswell Industries to be Significantly Overvalued.
Key valuation signals for DSWL:
Altman Z-Score: 3.77 (15% above median its 10-year median of 3.27)
GF Value™: $2.17 vs. price of $3.76 (73.3% above fair value)
Industry Position: 5% above the Hardware median (#1174 of 2459)
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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