Deswell Industries (NASDAQ: DSWL) shares currently have a dividend yield of 7.90%. Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. Currently there are no analysts that rate Deswell Industries a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Deswell Industries has been 12,200 shares per day over the past 30 days. Deswell Industries has a market cap of $41.8 million and is part of the consumer non-durables industry. Shares are up 6.3% year to date as of the close of trading on Monday. TheStreet Ratings rates Deswell Industries as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins. Highlights from the ratings report include:
- DSWL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.04, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 74.53% to $5.61 million when compared to the same quarter last year. In addition, DESWELL INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of 10.85%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The gross profit margin for DESWELL INDUSTRIES INC is rather low; currently it is at 19.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.60% trails that of the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 342.9% when compared to the same quarter one year ago, falling from $0.09 million to -$0.22 million.
- You can view the full Deswell Industries Ratings Report.
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