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6146

Disco TSE:6146 Stock Report

Last Price

JP¥32.20k

Market Cap

JP¥1.2t

7D

6.3%

1Y

-6.3%

Updated

30 Jun, 2022

Data

Company Financials +
6146 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends4/6

6146 Stock Overview

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

Disco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Disco
Historical stock prices
Current Share PriceJP¥32,200.00
52 Week HighJP¥36,600.00
52 Week LowJP¥28,060.00
Beta1.15
1 Month Change-8.26%
3 Month Change-3.45%
1 Year Change-6.26%
3 Year Change80.49%
5 Year Change79.09%
Change since IPO2,741.18%

Recent News & Updates

Shareholder Returns

6146JP SemiconductorJP Market
7D6.3%4.1%2.3%
1Y-6.3%-7.4%-3.9%

Return vs Industry: 6146 exceeded the JP Semiconductor industry which returned -7.4% over the past year.

Return vs Market: 6146 underperformed the JP Market which returned -3.9% over the past year.

Price Volatility

Is 6146's price volatile compared to industry and market?
6146 volatility
6146 Average Weekly Movement5.2%
Semiconductor Industry Average Movement6.0%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.4%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 6146 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6146's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19374,091Kazuma Sekiyahttps://www.disco.co.jp

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.

Disco Fundamentals Summary

How do Disco's earnings and revenue compare to its market cap?
6146 fundamental statistics
Market CapJP¥1.19t
Earnings (TTM)JP¥66.21b
Revenue (TTM)JP¥253.78b

17.6x

P/E Ratio

4.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6146 income statement (TTM)
RevenueJP¥253.78b
Cost of RevenueJP¥99.77b
Gross ProfitJP¥154.01b
Other ExpensesJP¥87.81b
EarningsJP¥66.21b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)1.83k
Gross Margin60.69%
Net Profit Margin26.09%
Debt/Equity Ratio0.0%

How did 6146 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6146 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6146?

Other financial metrics that can be useful for relative valuation.

6146 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.2x
Enterprise Value/EBITDA10.7x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does 6146's PE Ratio compare to its peers?

6146 PE Ratio vs Peers
The above table shows the PE ratio for 6146 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.8x
6857 Advantest
15.8x8.0%JP¥1.4t
6920 Lasertec
77.6x39.2%JP¥1.5t
3436 Sumco
12.6x8.0%JP¥635.2b
7735 SCREEN Holdings
9.4x8.2%JP¥451.3b
6146 Disco
17.6x5.9%JP¥1.2t

Price-To-Earnings vs Peers: 6146 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (29.8x).


Price to Earnings Ratio vs Industry

How does 6146's PE Ratio compare vs other companies in the JP Semiconductor Industry?

Price-To-Earnings vs Industry: 6146 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the JP Semiconductor industry average (10.8x)


Price to Earnings Ratio vs Fair Ratio

What is 6146's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6146 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: 6146 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (16x).


Share Price vs Fair Value

What is the Fair Price of 6146 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6146 (¥32200) is trading below our estimate of fair value (¥45295.73)

Significantly Below Fair Value: 6146 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 6146 is poor value based on its PEG Ratio (3x)


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Future Growth

How is Disco forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6146's forecast earnings growth (5.9% per year) is above the savings rate (0.04%).

Earnings vs Market: 6146's earnings (5.9% per year) are forecast to grow slower than the JP market (9% per year).

High Growth Earnings: 6146's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6146's revenue (4.6% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 6146's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6146's Return on Equity is forecast to be high in 3 years time (20.5%)


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Past Performance

How has Disco performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6146 has high quality earnings.

Growing Profit Margin: 6146's current net profit margins (26.1%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: 6146's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: 6146's earnings growth over the past year (69.4%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: 6146 earnings growth over the past year (69.4%) underperformed the Semiconductor industry 98.2%.


Return on Equity

High ROE: 6146's Return on Equity (22.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Disco's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6146's short term assets (¥244.9B) exceed its short term liabilities (¥109.9B).

Long Term Liabilities: 6146's short term assets (¥244.9B) exceed its long term liabilities (¥879.0M).


Debt to Equity History and Analysis

Debt Level: 6146 is debt free.

Reducing Debt: 6146 has no debt compared to 5 years ago when its debt to equity ratio was 5%.

Debt Coverage: 6146 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6146 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6146's dividend (2.51%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 6146's dividend (2.51%) is low compared to the top 25% of dividend payers in the JP market (3.67%).


Stability and Growth of Payments

Stable Dividend: 6146's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6146's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44%), 6146's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.9%), 6146's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

10.0yrs

Average board tenure


CEO

Kazuma Sekiya (55 yo)

13.17yrs

Tenure

JP¥267,000,000

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: Insufficient data to establish whether Kazuma's total compensation is reasonable compared to companies of similar size in the JP market.

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


Board Members

Experienced Board: 6146's board of directors are seasoned and experienced ( 10 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 employee growth, exchange listings and data sources


Key Information

  • Name: Disco Corporation
  • Ticker: 6146
  • Exchange: TSE
  • Founded: 1937
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Implied Market Cap: JP¥1.195t
  • Shares outstanding: 36.09m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.