MeritValue

DESWELL INDUSTRIES INC

DSWLdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'interestExpense'

The thesis, from the filings

DESWELL INDUSTRIES INC earns about 10% on invested capital, barely covering its ~9% cost of capital, with a roughly flat share count. The estimate methods put fair value between $5,275.72 and $48,193.55 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$86M1$77.3M2$69.4M3$67.6M3$61.3M3
Net income$8.23M4$2.06M5$7.71M6$11.1M6$10.6M6
Operating cash flow−$183,0007$13M8$13.2M9$13.5M9$5.2M9
Capital expenditure$1.5M10$792,00011$381,00012$332,00012$481,00012
Free cash flow (derived)−$1.69M7$12.2M8$12.8M9$13.2M9$4.71M9
Total debt—————
Cash & equivalents$13.5M13$22.2M14$15.8M15$28.1M16$23.1M16
Diluted shares16,13516,07215,99915,95315,922

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$68,703.68
your share of equity
Profit it earned you last year
$6,674.41
Free cash flow it threw off
$2,960.68
Debt you’d be carrying
—

10 shares is a claim on $68,703.68 of net worth that earned you $6,674.41 and generated $2,960.68 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY22 10%FY23 3%FY24 10%FY25 15%FY26 12%

It earned about 10% on invested capital against a ~9% cost of capital — roughly what it costs to fund the business, so the numbers show no clear edge.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $5,275.72 and $48,193.55 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$48,193.55
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$12.8M
DCF · Growth Exit 5Y
$27,095.87
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$12.8M
Earnings Power Value
$5,275.72
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$8.23M
  • growthAssumed0.0%
Graham Number
$10.19
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)9.08%
Terminal growth2.5%
At your growth, a share is worth $27,095.87
The three cases
Bear0.0%$12,707.76
Base20.0%$27,095.87
Bull20.0%$27,095.87

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2022-03-31 · accession 0001174947-24-000982 (Revenues)
  2. 20-F · period ending 2023-03-31 · accession 0001174947-25-001096 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2024-03-31 · accession 0002077096-26-000231 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F · period ending 2022-03-31 · accession 0001174947-24-000982 (NetIncomeLoss)
  5. 20-F · period ending 2023-03-31 · accession 0001174947-25-001096 (NetIncomeLoss)
  6. 20-F · period ending 2024-03-31 · accession 0002077096-26-000231 (NetIncomeLoss)
  7. 20-F · period ending 2022-03-31 · accession 0001174947-24-000982 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2023-03-31 · accession 0001174947-25-001096 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2024-03-31 · accession 0002077096-26-000231 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2022-03-31 · accession 0001174947-24-000982 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2023-03-31 · accession 0001174947-25-001096 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2024-03-31 · accession 0002077096-26-000231 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2022-03-31 · accession 0001174947-23-000928 (CashAndCashEquivalentsAtCarryingValue)
  14. 20-F · period ending 2023-03-31 · accession 0001174947-24-000982 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2024-03-31 · accession 0001174947-25-001096 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2025-03-31 · accession 0002077096-26-000231 (CashAndCashEquivalentsAtCarryingValue)