Company DescriptionDisco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. The company's precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws, as well as products for dicing before grinding process and package singulation. It also offers precision processing tools comprising dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment, as well as frames and cassettes, and additives for cutting waters. In addition, the company is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, it leases precision machines; and purchases and sells used machines. The company was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Disco Financial Statement Overview

Summary

Disco is in a strong financial position with impressive revenue growth and profitability. The company's balance sheet shows excellent financial health with no debt and a high equity ratio, minimizing financial risk. While cash flow generation remains strong, the recent decline in operating cash flow warrants attention. Overall, Disco is well-positioned for continued growth and stability in the semiconductor industry.

Income Statement

Very Positive

Disco demonstrates remarkable growth with a TTM revenue of ¥376.9 billion, reflecting a substantial increase from ¥253.8 billion in 2022. Gross profit margin is strong at 70.2%, and the net profit margin is impressive at 32.0%, indicating efficient cost management and strong profitability. EBIT and EBITDA margins are also robust at 42.8% and 44.6% respectively, showcasing operational efficiency.

Balance Sheet

Very Positive

The company maintains a solid balance sheet with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio is strong at 72.2%, highlighting financial stability. Return on equity stands at 26.6%, indicating effective use of equity to generate profits. The absence of debt and high equity ratio reduces financial risk significantly.

Cash Flow

Very Positive

Operating cash flow is robust at ¥28 billion, with a healthy free cash flow of ¥23.7 billion. The free cash flow to net income ratio is healthy, indicating strong cash generation relative to profits. However, there is a noticeable decline in operating cash flow compared to previous years, which could be monitored for potential liquidity risks.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
376.89B	393.31B	307.55B	284.13B	253.78B	182.86B
	Gross Profit
264.65B	277.45B	208.64B	184.51B	154.01B	106.88B
	EBIT
161.20B	166.72B	121.49B	110.41B	91.51B	53.11B
	EBITDA
168.17B	180.34B	132.49B	120.78B	100.06B	59.87B
	Net Income Common Stockholders
120.68B	123.89B	84.20B	82.89B	66.21B	39.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
263.49B	229.17B	215.49B	163.05B	125.77B	109.81B
	Total Assets
628.79B	654.09B	556.06B	468.80B	404.54B	329.03B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-263.49B	-229.17B	-215.49B	-163.05B	-125.77B	-109.81B
	Total Liabilities
174.69B	161.38B	149.50B	120.76B	110.73B	76.67B
	Stockholders Equity
453.77B	492.36B	406.37B	347.80B	293.54B	252.14B
Cash Flow		Free Cash Flow
23.68B	52.41B	81.27B	67.53B	40.02B	35.60B
	Operating Cash Flow
28.01B	120.36B	97.52B	81.78B	83.65B	56.71B
	Investing Cash Flow
-4.39B	-68.00B	-16.40B	-13.08B	-43.59B	-13.11B
	Financing Cash Flow
-4.09B	-38.15B	-30.94B	-32.09B	-27.19B	-15.82B

Disco Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DISPF		$23.97B	29.85	27.22%	1.22%	―	―
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
ADTTF		$40.50B	38.56	34.01%	0.47%	―	―
DINRF		$7.29B	11.27	24.78%	2.69%	―	―
LSRCF		$9.02B	19.86	44.53%	1.74%	―	―
RNECF		$23.50B	21.72	7.22%	1.40%	―	―
3436	63 Neutral	¥341.06B	19.06		2.16%	-0.96%	-42.79%

* Technology Sector Average

Performance Comparison

DISPF

Disco

230.58

-143.73

-38.40%

ADTTF

Advantest

57.92

24.05

71.01%

DINRF

SCREEN Holdings Co

73.90

-19.02

-20.47%

LSRCF

Lasertec

103.56

-131.59

-55.96%

RNECF

Renesas Electronics

13.40

-5.32

-28.42%

JP:3436

SUMCO Corporation

981.80

-1,383.68

-58.49%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.