Disco (DSCSY) AI Stock Analysis

• Market Cap: $46.08B
• Dividend Yield: 0.78%
• Average Volume (3M): 29.12K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.23
• Revenue Growth: 14.11%
• EPS Growth: 20.86%
• Country: US
• Employees: 4,886
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.22
• Shares Outstanding: 1,084,780,300
• 10 Day Avg. Volume: 61,884
• 30 Day Avg. Volume: 29,121
• PEG Ratio: 0.56
• Price to Book (P/B): 6.66
• Price to Sales (P/S): 8.33
• P/FCF Ratio: 61.34
• Enterprise Value/Market Cap: 147.77
• Enterprise Value/Revenue: 17.01
• Enterprise Value/Gross Profit: 24.22
• Enterprise Value/Ebitda: 38.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $44.00 ▲(26.36% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is driven primarily by outstanding financial performance (best-in-class margins and a zero-debt balance sheet). Technicals are supportive but overbought signals add near-term risk, and valuation is the main drag due to a very high P/E and modest dividend yield.

Positive Factors

Balance sheet strength (zero debt)

Zero reported debt and steadily rising equity provide durable financial flexibility: the company can fund R&D, product development, or opportunistic M&A without increasing leverage. Strong shareholder returns (ROE ~12%–25%) indicate efficient capital use and resilience through cycles.

Negative Factors

Mixed cash conversion and FCF volatility

Inconsistent cash conversion and volatile free-cash-flow margins point to working-capital swings or lumpy investments that can impair predictability of funds available for growth or payouts. Over 2–6 months this variability can constrain capital allocation and stress liquidity planning.

Disco Business Overview & Revenue Model

Company Description

Disco 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, surfa...

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Disco 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, surfa...

How the Company Makes Money

Disco makes money mainly by selling semiconductor manufacturing equipment and by selling recurring consumables and services tied to that installed base. Key revenue streams typically include: (1) Equipment sales: one-time sales of dicing, grinding...

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Disco makes money mainly by selling semiconductor manufacturing equipment and by selling recurring consumables and services tied to that installed base. Key revenue streams typically include: (1) Equipment sales: one-time sales of dicing, grinding...

Disco Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	400.43B	393.31B	307.55B	284.13B	253.78B	182.86B
Gross Profit	281.13B	277.57B	208.64B	184.47B	153.97B	106.83B
EBITDA	176.48B	179.03B	132.52B	120.75B	100.02B	59.87B
Net Income	123.94B	123.89B	84.20B	82.89B	66.21B	39.09B
Balance Sheet
Total Assets	620.08B	654.09B	556.06B	472.69B	404.54B	329.03B
Cash, Cash Equivalents and Short-Term Investments	198.50B	229.17B	215.49B	163.05B	125.77B	109.81B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	135.16B	161.39B	149.50B	124.65B	110.73B	76.67B
Stockholders Equity	484.62B	492.35B	406.37B	347.80B	293.54B	252.14B
Cash Flow
Free Cash Flow	0.00	53.43B	81.27B	67.53B	40.02B	35.60B
Operating Cash Flow	0.00	120.36B	97.52B	81.78B	83.65B	56.71B
Investing Cash Flow	0.00	-68.00B	-16.40B	-13.08B	-43.59B	-13.11B
Financing Cash Flow	0.00	-38.15B	-30.94B	-32.09B	-27.19B	-15.82B

Disco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSCSY, the sentiment is Positive. The current price of 34.82 is below the 20-day moving average (MA) of 42.18, below the 50-day MA of 44.45, and above the 200-day MA of 34.30, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 66.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DSCSY.

Disco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCSY	79 Outperform	$46.08B	34.64	25.78%	0.78%	14.11%	20.86%
GFS	69 Neutral	$26.60B	21.96	7.68%	―	0.25%	-106.22%
ON	64 Neutral	$26.94B	183.93	1.53%	―	-16.13%	-81.06%
ASX	63 Neutral	$52.66B	26.78	12.81%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MCHP	58 Neutral	$38.27B	246.12	-1.42%	2.79%	-23.36%	-131.15%
STM	56 Neutral	$33.54B	136.11	0.97%	1.28%	-17.33%	-76.71%