BST:D65

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Executive Summary

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Disco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: D65's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.7%

D65

3.6%

DE Semiconductor

-0.6%

DE Market


1 Year Return

48.2%

D65

33.8%

DE Semiconductor

3.0%

DE Market

Return vs Industry: D65 exceeded the German Semiconductor industry which returned 31.1% over the past year.

Return vs Market: D65 exceeded the German Market which returned 2.5% over the past year.


Shareholder returns

D65IndustryMarket
7 Day7.7%3.6%-0.6%
30 Day6.7%3.7%-0.1%
90 Day16.1%32.1%16.4%
1 Year51.3%48.2%35.4%33.8%5.2%3.0%
3 Year65.1%55.7%17.3%12.8%1.0%-6.9%
5 Year254.6%214.8%76.3%67.0%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Disco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Disco undervalued compared to its fair value and its price relative to the market?

36.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: D65 (€224) is trading above our estimate of fair value (€135.21)

Significantly Below Fair Value: D65 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: D65 is poor value based on its PE Ratio (36.1x) compared to the Semiconductor industry average (27.2x).

PE vs Market: D65 is poor value based on its PE Ratio (36.1x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: D65 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: D65 is overvalued based on its PB Ratio (4.4x) compared to the DE Semiconductor industry average (2.3x).


Next Steps

Future Growth

How is Disco forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: D65's forecast earnings growth (13.2% per year) is above the savings rate (0.2%).

Earnings vs Market: D65's earnings (13.2% per year) are forecast to grow slower than the German market (22.5% per year).

High Growth Earnings: D65's earnings are forecast to grow, but not significantly.

Revenue vs Market: D65's revenue (8.6% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: D65's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: D65's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Disco performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: D65 has high quality earnings.

Growing Profit Margin: D65's current net profit margins (19.6%) are higher than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: D65's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: D65's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: D65 had negative earnings growth (-4%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.5%).


Return on Equity

High ROE: D65's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Disco's financial position?


Financial Position Analysis

Short Term Liabilities: D65's short term assets (¥170.0B) exceed its short term liabilities (¥46.9B).

Long Term Liabilities: D65's short term assets (¥170.0B) exceed its long term liabilities (¥531.0M).


Debt to Equity History and Analysis

Debt Level: D65 is debt free.

Reducing Debt: D65 has no debt compared to 5 years ago when its debt to equity ratio was 7.4%.

Debt Coverage: D65 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: D65 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Disco current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: D65's dividend (1.58%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: D65's dividend (1.58%) is low compared to the top 25% of dividend payers in the German market (3.84%).


Stability and Growth of Payments

Stable Dividend: D65's dividend payments have been volatile in the past 10 years.

Growing Dividend: D65's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.9%), D65's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.1yrs

Average board tenure


CEO

Kazuma Sekiya (54yo)

3.08yrs

Tenure

JP¥271,000,000

Compensation

Mr. Kazuma Sekiya serves as President Disco Corporation since April 2009 and has been its Chief Executive Officer, Chief Operating Officer. Chief Information Officer and General Manager of Engineering R&D  ...


CEO Compensation Analysis

Compensation vs Market: Kazuma's total compensation ($USD2.53M) is below average for companies of similar size in the German market ($USD3.69M).

Compensation vs Earnings: Kazuma's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Kazuma Sekiya
CEO, President3.08yrsJP¥271.00m0.12% ¥9.9m
Noboru Yoshinaga
GM of Sales Division & Senior Executive Director1.5yrsno data0.028% ¥2.3m
Takao Tamura
Head of Human Resource9.08yrsno data0.044% ¥3.7m
Hideyuki Sekiya
Head of Hiroshima General Affairs9.08yrsno data0.044% ¥3.7m
Tsutomu Mimata
External Standing Corporate Auditor11.08yrsno datano data
Tadao Takayanagi
External Standing Corporate Auditor13.08yrsno datano data
Shinji Sekiya
Director Emeritus12.5yrsno data2.47% ¥204.2m
Ichiro Inasaki
External Director7.08yrsno datano data
Shinichi Tamura
External Director5.08yrsno datano data
Yuusei Yamaguchi
External Corporate Auditor5.08yrsno datano data

9.1yrs

Average Tenure

70yo

Average Age

Experienced Board: D65's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Disco Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Disco Corporation
  • Ticker: D65
  • Exchange: BST
  • Founded: 1937
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥1.001t
  • Listing Market Cap: JP¥8.260b
  • Shares outstanding: 36.01m
  • Website: https://www.disco.co.jp

Number of Employees


Location

  • Disco Corporation
  • 13-11 Omori-Kita 2-chome
  • Ota-ku
  • Tokyo
  • 143-8580
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6146TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
D65BST (Boerse-Stuttgart)YesCommon StockDEEURJan 1992
DSCS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2016

Biography

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its 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. The company 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, it manufactures and sells precision diamond abrasive tools; and offers processing services. Further, 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. Additionally, it leases precision machines; and purchases and sells used machines. The company was founded in 1937 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:17
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.