Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Deswell Industries, Inc. (DSWL)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$11.90 - $17.71$14.67
Multi-Stage$15.74 - $17.24$16.48
Blended Fair Value$15.57
Current Price$2.36
Upside559.89%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS5.97%0.71%0.200.200.200.200.180.150.100.070.140.11
YoY Growth--0.00%0.00%0.06%11.24%20.03%50.25%42.81%-50.53%33.33%-43.25%
Dividend Yield--8.46%9.00%7.54%5.45%5.08%6.73%3.27%2.23%7.22%6.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)22.81
(-) Cash Dividends Paid (M)6.38
(=) Cash Retained (M)16.43
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.562.851.71
Cash Retained (M)16.4316.4316.43
(-) Cash Required (M)-4.56-2.85-1.71
(=) Excess Retained (M)11.8713.5814.72
(/) Shares Outstanding (M)15.9615.9615.96
(=) Excess Retained per Share0.740.850.92
LTM Dividend per Share0.400.400.40
(+) Excess Retained per Share0.740.850.92
(=) Adjusted Dividend1.141.251.32
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate0.36%1.36%2.36%
Fair Value$11.90$14.67$17.71
Upside / Downside404.38%521.66%650.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)22.8123.1223.4323.7524.0824.4025.14
Payout Ratio27.95%40.36%52.77%65.18%77.59%90.00%92.50%
Projected Dividends (M)6.389.3312.3715.4818.6821.9623.25

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate0.36%1.36%2.36%
Year 1 PV (M)8.408.488.57
Year 2 PV (M)10.0210.2210.42
Year 3 PV (M)11.2911.6311.98
Year 4 PV (M)12.2612.7613.27
Year 5 PV (M)12.9813.6414.32
PV of Terminal Value (M)196.27206.25216.63
Equity Value (M)251.23262.98275.19
Shares Outstanding (M)15.9615.9615.96
Fair Value$15.74$16.48$17.24
Upside / Downside566.91%598.12%630.52%

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