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Disco
(OTC:DSCSY)
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Rating:81Outperform
Price Target:
$60.00
▲(72.31% Upside)
Action:Reiterated
Date:04/24/26
The score is driven primarily by excellent financial performance (elite margins, strong ROE, and a debt-free balance sheet), supported by generally positive technical positioning (price above key moving averages and positive MACD). The main offset is valuation, where a high P/E (~48.7) raises expectation risk despite the attractive ~4.53% dividend yield.
Positive Factors
High and improving margins
Sustained high gross and operating margins reflect a scalable, software-focused business with strong pricing power and operational efficiency. Durable margins provide persistent cash generation to fund R&D, sales, and product expansion while insulating profitability from cyclic revenue swings.
Negative Factors
Uneven revenue growth cadence
Inconsistent multi-year growth suggests demand cyclicality, timing of large engagements, or normalization risks. Such cadence complicates forecasting and capital planning and raises execution risk: sustained return expansion depends on converting intermittent spikes into steady growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Sustained high gross and operating margins reflect a scalable, software-focused business with strong pricing power and operational efficiency. Durable margins provide persistent cash generation to fund R&D, sales, and product expansion while insulating profitability from cyclic revenue swings.
Read all positive factors
Disco (DSCSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.73B
Dividend Yield0.78%
Average Volume (3M)58.87K
Price to Earnings (P/E)58.9
Beta (1Y)1.20
Revenue Growth11.87%
EPS Growth9.81%
CountryUS
Employees4,886
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)114.36
Shares Outstanding1,084,837,300
10 Day Avg. Volume99,137
30 Day Avg. Volume58,867
Financial Highlights & Ratios
PEG Ratio3.04
Price to Book (P/B)11.85
Price to Sales (P/S)15.10
P/FCF Ratio67.44
Enterprise Value/Market Cap168.63
Enterprise Value/Revenue21.78
Enterprise Value/Gross Profit31.03
Enterprise Value/Ebitda49.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Disco Business Overview & Revenue Model
Company Description
Disco Corporation, founded in 1937 and headquartered in Tokyo, Japan, is a global leader in the manufacturing and distribution of sophisticated machinery for precision cutting, grinding, and polishing. Its comprehensive range of high-precision equ...
How the Company Makes Money
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Disco Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 400.43B | 463.24B | 393.31B | 307.55B | 284.13B | 253.78B |
| Gross Profit | 281.13B | 323.93B | 277.57B | 208.64B | 184.47B | 153.97B |
| EBITDA | 176.48B | 210.83B | 179.03B | 132.52B | 120.75B | 100.02B |
| Net Income | 123.94B | 143.70B | 123.89B | 84.20B | 82.89B | 66.21B |
Balance Sheet | ||||||
| Total Assets | 620.08B | 746.63B | 654.09B | 556.06B | 472.69B | 404.54B |
| Cash, Cash Equivalents and Short-Term Investments | 198.50B | 285.81B | 229.17B | 215.49B | 163.05B | 125.77B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 135.16B | 155.96B | 161.39B | 149.50B | 124.65B | 110.73B |
| Stockholders Equity | 484.62B | 590.31B | 492.35B | 406.37B | 347.80B | 293.54B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 103.73B | 53.43B | 81.27B | 67.53B | 40.02B |
| Operating Cash Flow | 0.00 | 141.60B | 120.36B | 97.52B | 81.78B | 83.65B |
| Investing Cash Flow | 0.00 | -143.96B | -68.00B | -16.40B | -13.08B | -43.59B |
| Financing Cash Flow | 0.00 | -47.75B | -38.15B | -30.94B | -32.09B | -27.19B |
Disco Technical Analysis
Positive
34.82
Price Trends
46.05
Positive
45.36
Positive
39.52
Positive
Market Momentum
1.53
Positive
49.31
Neutral
26.21
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 48.98, below the 50-day MA of 46.05, and below the 200-day MA of 39.52, indicating a neutral trend. The MACD of 1.53 indicates Positive momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 26.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DSCSY.
Disco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $51.73B | 58.86 | 25.43% | 0.78% | 11.87% | 9.81% | |
69 Neutral | $38.32B | 49.53 | 6.66% | ― | 0.80% | ― | |
63 Neutral | $35.50B | 64.70 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $99.92B | 67.00 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $45.88B | 318.67 | 3.05% | 2.79% | 7.08% | ― | |
62 Neutral | $63.11B | 415.80 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DSCSY
Disco
47.73
19.16
67.08%
ASX
ASE Technology Holding Co
41.87
31.50
303.76%
MCHP
Microchip
84.64
13.51
18.99%
ON
ON Semiconductor
91.22
34.62
61.17%
STM
STMicroelectronics
68.35
36.35
113.58%
GFS
GlobalFoundries Inc
69.84
30.10
75.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.