DiscoDSCSY +6.02%95 Gross Margin % is 70.95% as of Mar. 2026, which is 17% above its 10-year median of 60.40. GuruFocus rates DSCSY with a GF Score™ of 95/100 and a GF Value™ of $36.14 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,011 Semiconductors companies, Disco ranks better than 95.94% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Disco's Gross Profit for the
three
months ended in Mar. 2026 was $595 Mil. Disco's Revenue for the
three
months ended in Mar. 2026 was $839 Mil. Therefore, Disco's Gross Margin % for the quarter that ended in Mar. 2026 was 70.95%.
The historical rank and industry rank for Disco's Gross Margin % or its related term are showing as below:
DSCSY'
s Gross Margin % Range Over the Past 10 Years
Min: 55.51 Med: 60.4 Max: 70.57
Current: 70.15
During the past 13 years, the highestGross Margin % of Disco was 70.57%. The lowest was 55.51%. And the median was 60.40%.
DSCSY's Gross Margin % is ranked better than 95.94% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs DSCSY: 70.15
Disco had a gross margin of 70.95% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Disco was 4.10% per year.
Disco (OTCPK:DSCSY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Disco had a gross margin of 70.95% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Disco Gross Margin % Related Terms
Disco Gross Margin % Historical Data
* Premium members only.
The historical data trend for Disco's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DSCSY vs LRCX, AMAT, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Disco's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Disco Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Disco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Disco's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Disco (DSCSY) has a Gross Margin % of 70.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Disco and its competitors. This is 17% above median its historical median of 60.40. Over the past decade, Disco's Gross Margin % has ranged from 55.51 to 70.57. According to the industry distribution chart, Disco ranks #41 out of 1011 companies in the Semiconductors industry, placing it in the top 4.1%.
Is Disco's Gross Margin % too high?
Disco's current Gross Margin % of 70.95% is 17% above median its 10-year median of 60.40. Over the past 10 years, this metric has ranged from a low of 55.51 to a high of 70.57. The Semiconductors industry median Gross Margin % is 29.61. Disco's value of 70.95% is 139.6% above this industry median. Based on the distribution chart, Disco ranks #41 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Disco has a GF Score™ of 95/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Disco's Gross Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, Disco ranks #41 out of 1011 companies for Gross Margin %. This places Disco in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Disco's value of 70.95% is 139.6% above this benchmark. Historically, Disco's own Gross Margin % has ranged from 55.51 to 70.57 over the past decade. While the company's 10-year median is 60.40 vs. the industry median of 29.61, Disco has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Disco's current Gross Margin % of 70.95% is 139.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Disco and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Disco's current Gross Margin % is 70.95%, which is 17% above median its own 10-year median of 60.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Disco stock overvalued right now?
Based on GuruFocus' analysis, Disco (DSCSY) is currently considered Significantly Overvalued. The stock's GF Value™ is $36.14, compared to a current price of $52.10 — trading 44.2% above its estimated fair value. The current Gross Margin % is 70.95%, which is 17% above median its 10-year median of 60.40 and 139.6% above the Semiconductors industry median of 29.61. Disco's overall GF Score™ is 95/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Disco (DSCSY), the current Gross Margin % is 70.95% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Disco (DSCSY) Overvalued in 2026?
Based on GuruFocus' analysis, Disco stock appears to be overvalued.
The current stock price of $52.10 is trading 44.2% above its estimated GF Value™ of $36.14.
GuruFocus considers Disco to be Significantly Overvalued.
Key valuation signals for DSCSY:
Gross Margin %: 70.95% (17% above median its 10-year median of 60.40)
GF Value™: $36.14 vs. price of $52.10 (44.2% above fair value)
Industry Position: 139.6% above the Semiconductors median (#41 of 1011)
No single metric tells the full story. See the DSCSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Disco is a Japan-based semiconductor production equipment manufacturer. Founded in 1937, the company manufactures diamond, water, and laser saws, as well as grinders and polishers, used mainly in back-end processes of semiconductor manufacturing, which involves treating processed silicon during the front-end process by thinning and dicing the wafers into bare dies for packaging.It is the world's largest manufacturer of semiconductor-grade saws and grinders, with an estimated 60%-70% market share in the semiconductor dicing and grinding industry as of 2025. The company operates three main factories, all located in Hiroshima and Nagano, Japan.
95GF Score
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