discoverIE Group plc (GB:DSCV)
LSE:DSCV
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discoverIE Group plc
(LSE:DSCV)
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Rating:63Neutral
Price Target:
836.00 p
▲(27.83% Upside)
Action:Downgraded
Date:06/04/26
The score is driven primarily by steady financial performance (improving earnings and consistently positive free cash flow) tempered by higher leverage. Technicals are supportive due to a strong uptrend, but overbought indicators add near-term risk. Valuation is a headwind given the high P/E and only modest dividend yield.
Positive Factors
Consistent cash generation
discoverIE’s operating and free cash flow have been persistently positive and improved through 2022–2024, with 2025 holding up. That durable cash generation supports reinvestment, shareholder returns and the ability to fund operations or reduce leverage without relying on equity issuance.
Negative Factors
Rising leverage
Debt increased materially over 2023–2025 and remains elevated, which constrains financial flexibility. Higher leverage raises interest service risk, limits headroom for capex or M&A, and makes the firm more vulnerable to cyclical downturns in industrial end markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
discoverIE’s operating and free cash flow have been persistently positive and improved through 2022–2024, with 2025 holding up. That durable cash generation supports reinvestment, shareholder returns and the ability to fund operations or reduce leverage without relying on equity issuance.
Read all positive factors
discoverIE Group plc (DSCV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£743.98M
Dividend Yield2.09%
Average Volume (3M)220.34K
Price to Earnings (P/E)23.6
Beta (1Y)1.61
Revenue Growth4.82%
EPS Growth17.76%
CountryUK
Employees4,500
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.30
Shares Outstanding97,356,110
10 Day Avg. Volume230,887
30 Day Avg. Volume220,337
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)1.57
Price to Sales (P/S)1.17
P/FCF Ratio12.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£861.00Price Target Upside31.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.43
Revenue Forecast (FY)£474.64M
discoverIE Group plc Business Overview & Revenue Model
Company Description
discoverIE Group plc designs, manufactures, and supplies components for electronic applications worldwide. It operates in two segments, Magnetics & Controls, and Sensing & Connectivity. The company offers magnetic and power components, embedded co...
How the Company Makes Money
discoverIE primarily makes money by selling engineered electronic components and related solutions to OEMs and industrial customers. Revenue is generated mainly through (1) product sales from its Magnetics & Controls segment (e.g., magnetic compon...
discoverIE Group plc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 443.30M | 422.90M | 437.00M | 448.90M | 379.20M |
| Gross Profit | 29.30M | 181.50M | 177.00M | 36.30M | 27.40M |
| EBITDA | 74.70M | 74.50M | 62.90M | 63.10M | 46.00M |
| Net Income | 29.00M | 24.60M | 15.50M | 21.30M | 19.00M |
Balance Sheet | |||||
| Total Assets | 694.60M | 695.00M | 668.70M | 585.70M | 592.70M |
| Cash, Cash Equivalents and Short-Term Investments | 125.30M | 139.30M | 110.80M | 83.90M | 108.80M |
| Total Debt | 239.80M | 261.00M | 234.90M | 145.40M | 160.10M |
| Total Liabilities | 366.00M | 387.00M | 367.10M | 282.10M | 302.30M |
| Stockholders Equity | 328.60M | 308.00M | 301.60M | 303.60M | 290.40M |
Cash Flow | |||||
| Free Cash Flow | 42.30M | 40.30M | 36.30M | 32.10M | 25.10M |
| Operating Cash Flow | 48.00M | 46.40M | 41.20M | 37.70M | 31.30M |
| Investing Cash Flow | -14.00M | -19.30M | -83.80M | -30.70M | -53.00M |
| Financing Cash Flow | -49.10M | -13.90M | 33.20M | 1.20M | 29.30M |
discoverIE Group plc Technical Analysis
Neutral
654.00
Price Trends
652.28
Positive
634.04
Positive
612.98
Positive
Market Momentum
30.13
Positive
50.75
Neutral
57.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DSCV, the sentiment is Neutral. The current price of 654 is below the 20-day moving average (MA) of 720.30, above the 50-day MA of 652.28, and above the 200-day MA of 612.98, indicating a neutral trend. The MACD of 30.13 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 57.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:DSCV.
discoverIE Group plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £78.51M | 11.34 | 16.76% | ― | -3.41% | 58.10% | |
67 Neutral | £261.66M | 66.05 | 3.10% | 2.19% | 12.73% | -26.74% | |
63 Neutral | £743.98M | 23.64 | 8.34% | 2.09% | 4.82% | 17.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £283.08M | 51.03 | 6.24% | 1.89% | 9.13% | -47.18% | |
54 Neutral | £206.22M | -4.11 | -31.21% | ― | -7.62% | 5.48% | |
54 Neutral | £107.04M | -33.50 | -5.90% | ― | -2.20% | 68.24% |
* Technology Sector Average
GB:DSCV
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discoverIE Group plc Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
DiscoverIE Builds Momentum With Earnings Growth and Strategic Acquisitions
Positive
Jun 3, 2026
DiscoverIE Group plc, a FTSE 250-listed designer and manufacturer of customised industrial electronics, supplies application-specific components to OEMs via its Magnetics Controls and Sensing Connectivity divisions. With a presence in Europe, th...
Business Operations and StrategyFinancial Disclosures
discoverIE sets date for full-year results amid expansion in customised electronics
Neutral
May 20, 2026
discoverIE Group plc, a London-listed designer and manufacturer of customised industrial electronic components, supplies application-specific parts to OEMs via its Magnetics Controls and Sensing Connectivity divisions, generating recurring reven...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
DiscoverIE boosts North American footprint with 3Gmetalworx acquisition
Positive
May 19, 2026
DiscoverIE Group plc has agreed to acquire a 90% interest in 3Gmetalworx, a North American designer and manufacturer of electromagnetic shielding and thermal management products for aerospace, defence, commercial space and industrial electronics. ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
DiscoverIE lifts orders, expands capacity as demand accelerates
Positive
Apr 17, 2026
DiscoverIE Group reported an acceleration in fourth-quarter trading, with all units seeing stronger demand and orders rising 16% at constant exchange rates and 15% organically, outpacing 6% sales growth. The Magnetics Controls division benefited ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.