Disco (DSCSY) AI Stock Analysis

• Market Cap: $30.49B
• Dividend Yield: 0.8%
• Average Volume (3M): 15.33K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 1.47
• Revenue Growth: 18.57%
• EPS Growth: 29.43%
• Country: US
• Employees: 4,886
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): 0.15
• Shares Outstanding: 1,084,336,400
• 10 Day Avg. Volume: 7,008
• 30 Day Avg. Volume: 15,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.11
• Enterprise Value/Ebitda: 0.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Disco's overall stock score reflects strong financial performance, characterized by robust growth and a healthy balance sheet. Despite the bearish technical indicators suggesting short-term challenges, the company's sound financial health and reasonable valuation support its potential for long-term resilience and growth in the semiconductor industry.

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, 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 Corporation generates revenue primarily through the sale of its precision semiconductor manufacturing equipment. Its key revenue streams include the sales of dicing saws, grinders, and other specialized machinery used in the semiconductor industry. In addition to equipment sales, Disco also earns revenue from providing maintenance services, spare parts, and customer support for the equipment it sells. The company benefits from long-term relationships with leading semiconductor manufacturers, which often require regular upgrades and replacements of equipment, contributing to consistent revenue flow. Furthermore, Disco's focus on innovation and technological advancement helps maintain its competitive edge, allowing it to leverage industry growth and demand for more advanced semiconductor manufacturing solutions.

Disco Financial Statement Overview

Summary

Disco shows strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet is exceptionally strong with no debt and high equity, ensuring financial flexibility. Cash flow is efficiently managed with significant free cash flow growth. Overall, Disco's financial health is impressive, positioning it well for future growth.

Income Statement

Disco shows a strong financial performance with a consistent revenue growth rate, achieving a 8.25% increase in the latest year. The company maintains healthy profitability margins, with a Gross Profit Margin of 67.84% and a Net Profit Margin of 27.39%. Both EBIT and EBITDA margins remain robust at 39.49% and 43.08% respectively, indicating efficient cost management and operational efficiency. Overall, Disco's income statement reflects strong growth and profitability.

Balance Sheet

The balance sheet is exceptionally strong with no debt, resulting in a Debt-to-Equity Ratio of 0, which eliminates financial leverage risks. Disco's Return on Equity (ROE) is high at 20.73%, showcasing effective use of equity to generate profits. An Equity Ratio of 73.08% highlights a solid capital structure, providing financial stability and flexibility for future growth. Overall, the balance sheet demonstrates excellent financial health and stability.

Cash Flow

Disco exhibits strong cash flow management with a significant Free Cash Flow growth of 20.36%. The Operating Cash Flow to Net Income ratio is 1.16, indicating efficient cash generation relative to net income. The Free Cash Flow to Net Income ratio of 0.97 suggests that nearly all net income is converted to free cash flow, underlying strong cash efficiency. Overall, the cash flow statement reflects robust cash generation and efficient capital allocation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	393.31B	307.55B	284.13B	253.78B	182.86B
Gross Profit	277.57B	208.64B	184.47B	153.97B	106.83B
EBITDA	179.03B	132.52B	120.75B	100.02B	59.87B
Net Income	123.89B	84.20B	82.89B	66.21B	39.09B
Balance Sheet
Total Assets	654.09B	556.06B	472.69B	404.54B	329.03B
Cash, Cash Equivalents and Short-Term Investments	229.17B	215.49B	163.05B	125.77B	109.81B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	161.39B	149.50B	124.65B	110.73B	76.67B
Stockholders Equity	492.35B	406.37B	347.80B	293.54B	252.14B
Cash Flow
Free Cash Flow	53.43B	81.27B	67.53B	40.02B	35.60B
Operating Cash Flow	120.36B	97.52B	81.78B	83.65B	56.71B
Investing Cash Flow	-68.00B	-16.40B	-13.08B	-43.59B	-13.11B
Financing Cash Flow	-38.15B	-30.94B	-32.09B	-27.19B	-15.82B

Disco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 28.16 is above the 20-day moving average (MA) of 27.74, below the 50-day MA of 28.39, and above the 200-day MA of 25.90, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 86.29 is Negative, 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	76 Outperform	$30.49B	36.95	28.07%	0.80%	18.57%	29.43%
ON	69 Neutral	$20.28B	46.27	5.72%	―	-17.93%	-75.83%
STM	68 Neutral	$24.36B	39.35	3.72%	1.13%	-22.97%	-78.58%
ASX	67 Neutral	$21.48B	20.20	10.97%	3.59%	4.86%	6.44%
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%
GFS	54 Neutral	$18.46B	28.15	-1.01%	―	-0.65%	-114.26%
MCHP	53 Neutral	$35.08B	84.25	-2.24%	2.80%	-35.70%	-113.08%