OTCPK:DSCS.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.2%

DSCS.Y

3.0%

US Semiconductor

1.8%

US Market


1 Year Return

21.7%

DSCS.Y

20.6%

US Semiconductor

7.3%

US Market

Return vs Industry: DSCS.Y exceeded the US Semiconductor industry which returned 20.6% over the past year.

Return vs Market: DSCS.Y exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

DSCS.YIndustryMarket
7 Day0.2%3.0%1.8%
30 Day-0.8%-0.02%-0.7%
90 Day11.7%4.7%0.06%
1 Year21.7%21.7%22.9%20.6%9.7%7.3%
3 Year75.8%75.8%82.2%71.5%46.3%36.9%
5 Yearn/a137.4%112.9%64.5%46.5%

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?

29.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DSCS.Y ($40.05) is trading above our estimate of fair value ($22.36)

Significantly Undervalued: DSCS.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DSCS.Y is poor value based on its PE Ratio (29.6x) compared to the Semiconductor industry average (27.6x).

PE vs Market: DSCS.Y is poor value based on its PE Ratio (29.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DSCS.Y is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: DSCS.Y is overvalued based on its PB Ratio (3.7x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

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

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSCS.Y's forecast earnings growth (13.5% per year) is above the savings rate (2.7%).

Earnings vs Market: DSCS.Y's earnings (13.5% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: DSCS.Y's revenue (7.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DSCS.Y's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DSCS.Y's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Disco performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DSCS.Y's earnings have grown by 14.5% per year over the past 5 years.

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

Earnings vs Industry: DSCS.Y had negative earnings growth (-24.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: DSCS.Y's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: DSCS.Y has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: DSCS.Y has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Disco's financial position?


Financial Position Analysis

Short Term Liabilities: DSCS.Y's short term assets (¥160.4B) exceeds its short term liabilities (¥42.5B)

Long Term Liabilities: DSCS.Y's short term assets (160.4B) exceeds its long term liabilities (382.0M)


Debt to Equity History and Analysis

Debt Level: DSCS.Y is debt free.

Reducing Debt: DSCS.Y has no debt compared to 5 years ago when its debt to equity ratio was 14.8%.

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

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


Balance Sheet

Inventory Level: DSCS.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DSCS.Y's debt is covered by short term assets.


Next Steps

Dividend

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

1.49%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DSCS.Y's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DSCS.Y's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.1%), DSCS.Y'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

What is the CEO of Disco's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average board tenure


CEO

Kazuma Sekiya (53yo)

2.3yrs

Tenure

JP¥252,000,000

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD6.79M).

Compensation vs Earnings: Kazuma's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

8.3yrs

Average Tenure

69yo

Average Age

Experienced Board: DSCS.Y's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Hideyuki Sekiya (67yo)

    Head of Hiroshima General Affairs

    • Tenure: 8.3yrs
  • Takao Tamura (64yo)

    Head of Human Resource

    • Tenure: 8.3yrs
  • Kazuma Sekiya (53yo)

    CEO, President

    • Tenure: 2.3yrs
    • Compensation: JP¥252.00m
  • Noboru Yoshinaga

    GM of Sales Division & Senior Executive Director

    • Tenure: 0.8yrs

Board Members

  • Tsutomu Mimata (75yo)

    External Standing Corporate Auditor

    • Tenure: 10.3yrs
  • Hideyuki Sekiya (67yo)

    Head of Hiroshima General Affairs

    • Tenure: 8.3yrs
  • Takao Tamura (64yo)

    Head of Human Resource

    • Tenure: 8.3yrs
  • Kazuma Sekiya (53yo)

    CEO, President

    • Tenure: 2.3yrs
    • Compensation: JP¥252.00m
  • Noboru Yoshinaga

    GM of Sales Division & Senior Executive Director

    • Tenure: 0.8yrs
  • Tadao Takayanagi (67yo)

    External Standing Corporate Auditor

    • Tenure: 12.3yrs
  • Shinji Sekiya

    Director Emeritus

    • Tenure: 11.8yrs
  • Ichiro Inasaki (78yo)

    External Director

    • Tenure: 6.3yrs
  • Shinichi Tamura (75yo)

    External Director

    • Tenure: 4.3yrs
  • Yuusei Yamaguchi (71yo)

    External Corporate Auditor

    • Tenure: 4.3yrs

Company Information

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


Key Information

  • Name: Disco Corporation
  • Ticker: DSCS.Y
  • Exchange: OTCPK
  • Founded: 1937
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥776.736b
  • Listing Market Cap: JP¥7.153b
  • Shares outstanding: 35.93m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:46
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.