Disco Corporation (JP:6146)
:6146
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Disco
(6146)
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Rating:80Outperform
Price Target:
¥86,055.00
▲(18.05% Upside)
Action:ReiteratedDate:04/23/26
High score driven primarily by standout financial quality (excellent margins and a fortress, zero-debt balance sheet) and strong technical uptrend. The main offset is valuation, with a high P/E and low yield limiting upside resilience if growth slows or the cycle turns.
Positive Factors
Exceptional profitability and margins
Sustained industry-leading gross, operating and net margins give Disco durable competitive advantages: pricing power, high cash generation per sale, and capacity to fund R&D and process investment internally. These structural margins support long-term profitability through cycles and enable investment without reliance on external capital.
Negative Factors
Volatile free cash flow and cash conversion
Material variability in free cash flow relative to earnings undermines predictability of internal funding for capex, R&D, and distributions. Over a medium-term horizon this volatility can constrain capital allocation flexibility, complicate long-range planning, and increase sensitivity to cyclical demand shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability and margins
Sustained industry-leading gross, operating and net margins give Disco durable competitive advantages: pricing power, high cash generation per sale, and capacity to fund R&D and process investment internally. These structural margins support long-term profitability through cycles and enable investment without reliance on external capital.
Read all positive factors
Disco (6146) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.31T
Dividend Yield0.79%
Average Volume (3M)4.03M
Price to Earnings (P/E)38.7
Beta (1Y)1.37
Revenue Growth11.08%
EPS Growth9.32%
CountryJP
Employees4,886
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1143.63
Shares Outstanding108,478,030
10 Day Avg. Volume3,686,180
30 Day Avg. Volume4,033,456
Financial Highlights & Ratios
PEG Ratio5.26
Price to Book (P/B)11.30
Price to Sales (P/S)15.20
P/FCF Ratio67.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥80,500.00Price Target Upside10.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1,632.39
Revenue Forecast (FY)¥527.17B
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...
How the Company Makes Money
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Disco Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 400.43B | 436.89B | 393.31B | 307.55B | 284.13B | 253.78B |
| Gross Profit | 281.02B | 305.50B | 277.45B | 208.60B | 184.47B | 153.97B |
| EBITDA | 178.39B | 198.84B | 180.34B | 125.61B | 123.16B | 100.80B |
| Net Income | 123.94B | 135.52B | 123.89B | 84.21B | 82.89B | 66.21B |
Balance Sheet | ||||||
| Total Assets | 620.08B | 743.41B | 654.09B | 560.42B | 472.69B | 404.54B |
| Cash, Cash Equivalents and Short-Term Investments | 198.50B | 284.57B | 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 | 155.28B | 161.38B | 153.85B | 124.65B | 110.73B |
| Stockholders Equity | 484.62B | 587.76B | 492.36B | 406.37B | 347.80B | 293.54B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 97.83B | 52.41B | 81.31B | 67.58B | 40.08B |
| Operating Cash Flow | 0.00 | 133.54B | 120.36B | 97.52B | 81.78B | 83.65B |
| Investing Cash Flow | 0.00 | -135.77B | -68.00B | -16.40B | -13.08B | -43.59B |
| Financing Cash Flow | 0.00 | -45.03B | -38.15B | -30.94B | -32.09B | -27.19B |
Disco Technical Analysis
Positive
72900.00
Price Trends
69593.79
Positive
60994.55
Positive
52957.15
Positive
Market Momentum
826.85
Negative
58.69
Neutral
90.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6146, the sentiment is Positive. The current price of 72900 is above the 20-day moving average (MA) of 66691.49, above the 50-day MA of 69593.79, and above the 200-day MA of 52957.15, indicating a bullish trend. The MACD of 826.85 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 90.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6146.
Disco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥4.05T | 67.46 | 53.12% | 1.11% | 12.01% | 26.66% | |
80 Outperform | ¥8.31T | 38.72 | 25.78% | 0.79% | 11.08% | 9.32% | |
79 Outperform | ¥23.51T | 19.86 | 26.01% | 1.79% | 0.49% | 6.10% | |
78 Outperform | ¥2.11T | 15.60 | 21.73% | 2.29% | -4.28% | -9.67% | |
77 Outperform | ¥751.60B | 24.84 | 12.66% | 2.28% | 7.69% | -19.63% | |
66 Neutral | ¥1.67T | 44.15 | ― | 0.73% | 6.02% | 3.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:6146
Disco
75,000.00
44,208.90
143.58%
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158.24%
Disco Corporate Events
Disco Boosts Shareholder Returns With ¥505 Total Dividend for FY2025
Apr 22, 2026
Disco Corporation has approved a year-end dividend of 376 yen per share for the fiscal year ended March 31, 2026, bringing the total annual dividend to 505 yen including an interim payout of 129 yen. The dividend distribution, totaling 40.781 bill...
Disco Issues Cautious Single-Quarter Forecast Amid Industry Volatility
Apr 22, 2026
Disco Corporation has issued a business forecast for the first quarter of the fiscal year ending March 31, 2027, breaking with its prior practice of keeping near-term projections undisclosed. The company expects cumulative shipments of ¥132.0...
Disco Lifts Dividend as Profits and Forecasts Climb on Semiconductor Demand
Apr 22, 2026
Disco Corporation reported solid consolidated results for fiscal 2025, with net sales, operating income, ordinary income and net profit all rising around 10% year on year, while comprehensive income climbed 13.1%. The company’s financial pos...
Disco Posts Record Shipments for Sixth Year on Generative AI Demand
Apr 6, 2026
Disco Corporation reported preliminary non-consolidated net sales of 353.8 billion yen for fiscal 2025, up 6.6% year-on-year and slightly above its latest forecast. Fourth-quarter net sales reached 104.9 billion yen, while management emphasized th...
Disco Revamps Executive Stock Option Terms to Eliminate Fractional Shares
Feb 17, 2026
Disco Corporation has amended the terms for stock options previously granted to its executive officers, revising how the number of shares underlying those options is adjusted in the event of a share split or share consolidation. The change is desi...
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.