Is DESWELL INDUSTRIES INC (DSWL) Halal?

NASDAQ Technology Macau $50M
✗ NOT HALAL
Confidence: 83/100
DESWELL INDUSTRIES INC (DSWL) is Not Halal under AAOIFI Standard 21. While the debt ratio of 0.0% is acceptable, the cash and interest-bearing securities ratio of 142.7% exceeds the 30% threshold. DESWELL INDUSTRIES INC operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.0%
/ 30%
142.7%
/ 30%
19.2%
/ 30%
1.56%
/ 5%
✗ NOT HALAL
DJIM 0.0%
/ 33%
142.7%
/ 33%
19.2%
/ 33%
1.56%
/ 5%
✗ NOT HALAL
MSCI 0.0%
/ 33%
62.8%
/ 33%
8.4%
/ 33%
1.56%
/ 5%
✗ NOT HALAL
S&P 0.0%
/ 33%
142.7%
/ 33%
19.2%
/ 33%
1.56%
/ 5%
✗ NOT HALAL
FTSE 0.0%
/ 33%
62.8%
/ 33%
8.4%
/ 50%
1.56%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
4.0
EPS
$0.78
Dividend Yield
622.0%
Payout: 25.6%
P/B Ratio
0.5
EV/EBITDA
-5.6
EV: -$30M
Revenue
$68M
Growth: -5.5%
Beta
0.5
Low volatility
Current Ratio
5.3

Profitability

Gross Margin 22.2%
Operating Margin 7.5%
Net Margin 19.0%
Return on Equity (ROE) 12.1%
Return on Assets (ROA) 1.9%

Cash Flow & Balance Sheet

Operating Cash Flow$14M
Free Cash Flow$13M
Current Ratio5.3
Total Assets$120M

Price & Trading

Last Close$3.10
50-Day MA$3.42
200-Day MA$3.40
Avg Volume11K
Beta0.5
52-Week Range
$1.93
$4.48

About DESWELL INDUSTRIES INC (DSWL)

CEO
Mr. Kin Chung So
Employees
794
Sector
Technology
Industry
Electronic Components
Country
Macau
Exchange
NASDAQ
Market Cap
$50M
Currency
USD

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 in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally. The company operates through two segments, Plastic Injection Molding and Electronic Products Assembling. It produces various plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components for electronic entertainment products, power tools, accessories, and outdoor equipment; cases for flashlights, telephones, printers, scanners; parts for industrial components, and indoor control switches, as well as parts for audio equipment, and cases and key tops for personal organizers and remote controls; double injection caps; parts for medical products comprising apparatus for blood tests; laser key caps; automobile components; and plastic components of automatic robot. The company also provides electronic products that consist of audio equipment, including digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment, and speaker enclosures; consumer audio products, such as multi-channel receivers-amplifiers, wired and wireless audio streaming products, and headphones; printed circuit board assemblies; and medical products. The company was founded in 1987 and is based in Macau.

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Frequently Asked Questions

Is DESWELL INDUSTRIES INC (DSWL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), DESWELL INDUSTRIES INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is DESWELL INDUSTRIES INC's debt ratio?

DESWELL INDUSTRIES INC's debt ratio is 0.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.0%.

What are DESWELL INDUSTRIES INC's key financial metrics?

DESWELL INDUSTRIES INC has a market capitalization of $50M, trailing P/E ratio of 4.0, and revenue of $68M. The company maintains a gross margin of 22.2% and a net margin of 19.0%. Return on equity stands at 12.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.