DiscoTSE:6146 -3.78%93 Operating Margin % is 44.17% as of Mar. 2026, which is 33% above its 10-year median of 33.27. GuruFocus rates TSE:6146 with a GF Score™ of 93/100 and a GF Value™ of 円54,369.76 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,023 Semiconductors companies, Disco ranks better than 97.65% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Disco's Operating Income for the
three
months ended in Mar. 2026 was 円58,777 Mil. Disco's Revenue for the
three
months ended in Mar. 2026 was 円133,061 Mil. Therefore, Disco's Operating Margin % for the quarter that ended in Mar. 2026 was 44.17%.
Good Sign:
Disco Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Disco's Operating Margin % or its related term are showing as below:
TSE:6146'
s Operating Margin % Range Over the Past 10 Years
Min: 23.35 Med: 33.27 Max: 42.42
Current: 42.34
TSE:6146's Operating Margin % is ranked better than 97.65% of 1023
companies
in the Semiconductors industry
Industry Median: 5.18
vs TSE:6146: 42.34
Disco's 5-Year Average Operating Margin % Growth Rate was 7.10% per year.
Disco's Operating Income for the
three
months ended in Mar. 2026 was 円58,777 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円184,990 Mil.
Disco (TSE:6146) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Disco Operating Margin % Related Terms
Disco Operating Margin % Historical Data
* Premium members only.
The historical data trend for Disco's Operating 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.
TSE:6146 vs LRCX, AMAT, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Disco's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Disco's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Disco's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Disco's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Disco (TSE:6146) has a Operating Margin % of 44.17% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Disco and its competitors. This is 33% above median its historical median of 33.27. Over the past decade, Disco's Operating Margin % has ranged from 23.35 to 42.42. According to the industry distribution chart, Disco ranks #24 out of 1023 companies in the Semiconductors industry, placing it in the top 2.3%.
Is Disco's Operating Margin % too high?
Disco's current Operating Margin % of 44.17% is 33% above median its 10-year median of 33.27. Over the past 10 years, this metric has ranged from a low of 23.35 to a high of 42.42. The Semiconductors industry median Operating Margin % is 5.18. Disco's value of 44.17% is 752.7% above this industry median. Based on the distribution chart, Disco ranks #24 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Disco has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Disco's Operating Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, Disco ranks #24 out of 1023 companies for Operating Margin %. This places Disco in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.18. Disco's value of 44.17% is 752.7% above this benchmark. Historically, Disco's own Operating Margin % has ranged from 23.35 to 42.42 over the past decade. While the company's 10-year median is 33.27 vs. the industry median of 5.18, 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 Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Disco's current Operating Margin % of 44.17% is 752.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Disco and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Disco's current Operating Margin % is 44.17%, which is 33% above median its own 10-year median of 33.27. 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 (TSE:6146) is currently considered Significantly Overvalued. The stock's GF Value™ is 円54,369.76, compared to a current price of 円79,740.00 — trading 46.7% above its estimated fair value. The current Operating Margin % is 44.17%, which is 33% above median its 10-year median of 33.27 and 752.7% above the Semiconductors industry median of 5.18. Disco's overall GF Score™ is 93/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Disco (TSE:6146), the current Operating Margin % is 44.17% 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 (TSE:6146) Overvalued in 2026?
Based on GuruFocus' analysis, Disco stock appears to be overvalued.
The current stock price of 円79,740.00 is trading 46.7% above its estimated GF Value™ of 円54,369.76.
GuruFocus considers Disco to be Significantly Overvalued.
Key valuation signals for TSE:6146:
Operating Margin %: 44.17% (33% above median its 10-year median of 33.27)
GF Value™: 円54,369.76 vs. price of 円79,740.00 (46.7% above fair value)
Industry Position: 752.7% above the Semiconductors median (#24 of 1023)
No single metric tells the full story. See the TSE:6146 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.
93GF Score
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