Disco (6146.T)
Technology · Tokyo · Japan
Fundamentals
Valuation and ratings
Disco trades at ¥64,320.00, which is 51% above the ¥31,387.96 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 89 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 58.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Disco
Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. The company offers precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, inspection systems, surface planers, and waterjet saws. It also provides precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment, cut-off wheels, and related products. In addition, the company is involved in the maintenance, disassembly, and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its machines. Further, it leases precision machines; and purchases and sells used machines. Additionally, the company manufactures and sells precision diamond abrasive tools; and offers chargeable processing services. Disco Corporation was founded in 1937 and is based in Ota, Japan.
6146.T passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Disco (6146.T) undervalued?
Against our discounted cash flow estimate of ¥31,387.96, 6146.T at ¥64,320.00 is 51% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 6146.T's P/E ratio?
6146.T trades at 58.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.