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discoverIE Group plc (GB:DSCV)
LSE:DSCV
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discoverIE Group plc (DSCV) AI Stock Analysis

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GB:DSCV

discoverIE Group plc

(LSE:DSCV)

Rating:71Outperform
Price Target:
725.00p
▲(19.64% Upside)
discoverIE Group plc demonstrates strong financial health and positive corporate events, which are significant strengths. However, technical analysis indicates potential bearish momentum, and the valuation suggests the stock is moderately overvalued. Addressing revenue growth challenges and improving market sentiment could enhance the stock's attractiveness.
Positive Factors
Growth Opportunities
Management points to an excellent pipeline of organic and inorganic opportunities, which is helpful and should help sentiment.
Order Growth
Orders picked up strongly in 4Q25, but we are not convinced the +15% growth has continued into 1Q26.
Positive Earnings Report
DSCV's FY25 Prelims were ahead of consensus and contained some interesting evolution.
Negative Factors
Book-to-Bill Ratio
Book-to-bill remains stubbornly anaemic, questioning if this year will see the levels of OCC and M&A growth needed to drive the valuation materially higher.
Market Uncertainty
There is uncertainty in some end markets, which has led management to caution against becoming overly bullish on the top-line growth.
Sales Decline
There is ongoing weakness in sales, with a -4% decline in OCC terms in 4Q25F.

discoverIE Group plc (DSCV) vs. iShares MSCI United Kingdom ETF (EWC)

discoverIE Group plc Business Overview & Revenue Model

Company DescriptiondiscoverIE 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 computing and interface controls, and sensing and connectivity components for industrial applications. It serves customers in renewable energy, transportation, medical, and industrial and connectivity markets. The company was formerly known as Acal plc and changed its name to discoverIE Group plc in November 2017. discoverIE Group plc was incorporated in 1986 and is headquartered in Guildford, the United Kingdom.
How the Company Makes MoneydiscoverIE Group plc generates revenue through the sale of its bespoke electronic components and solutions, which are tailored to meet the unique requirements of its diverse customer base. The company operates primarily through two segments: Design & Manufacturing and Global Distribution. In addition to direct sales, discoverIE benefits from long-term contracts and partnerships with clients in key sectors such as transportation and renewable energy, which facilitate steady revenue streams. The firm's focus on innovation and customization allows it to command premium pricing for its products, while its extensive distribution network helps to maintain a robust market presence and reach a wide array of customers. Furthermore, the company's strategic acquisitions of complementary businesses enhance its product offerings and market reach, contributing to continued revenue growth.

discoverIE Group plc Financial Statement Overview

Summary
The company exhibits strong financial health with effective profitability and cash generation. The balance sheet reflects a stable financial structure with moderate leverage, while the income statement shows solid margins but highlights challenges in revenue growth. The cash flow statement supports the company's ability to generate cash, although potential concerns in long-term growth financing remain.
Income Statement
78
Positive
The income statement shows solid performance with a strong gross profit margin of 42.92% and improving EBIT and EBITDA margins of 10.03% and 17.61%, respectively. However, the net profit margin is relatively moderate at 5.82%. The revenue growth rate is negative at -3.26%, indicating a decline in revenue compared to the previous period. Overall, the company demonstrates healthy profitability but faces challenges in sustaining revenue growth.
Balance Sheet
82
Very Positive
The balance sheet is solid with a favorable debt-to-equity ratio of 0.85, indicating prudent leverage. The return on equity (ROE) is 7.99%, showcasing efficient use of equity capital, though it could be improved. The equity ratio stands at 44.32%, highlighting a stable capital structure with a good portion of assets financed by equity. The company maintains a healthy balance between debt and equity, ensuring financial stability.
Cash Flow
74
Positive
The cash flow statement reveals a strong free cash flow growth rate of 11.02% and a robust operating cash flow to net income ratio of 1.89, indicating effective cash generation relative to profits. The free cash flow to net income ratio is also strong at 1.64, underscoring the company's ability to convert earnings into cash. However, the cash flows from investing and financing activities indicate potential challenges in sustaining operations and growth without external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue422.90M422.90M437.00M448.90M379.20M302.80M
Gross Profit127.40M181.50M177.00M36.30M27.40M104.00M
EBITDA69.40M74.50M62.90M63.10M46.00M35.20M
Net Income24.60M24.60M15.50M21.30M19.00M12.00M
Balance Sheet
Total Assets695.00M695.00M668.70M585.70M592.70M428.20M
Cash, Cash Equivalents and Short-Term Investments139.30M139.30M110.80M83.90M108.80M29.20M
Total Debt261.00M261.00M234.90M145.40M160.10M97.90M
Total Liabilities387.00M387.00M367.10M282.10M302.30M219.80M
Stockholders Equity308.00M308.00M301.60M303.60M290.40M208.40M
Cash Flow
Free Cash Flow42.70M40.30M36.30M32.10M25.10M42.40M
Operating Cash Flow48.10M46.40M41.20M37.70M31.30M46.30M
Investing Cash Flow-21.00M-19.30M-83.80M-30.70M-53.00M-24.40M
Financing Cash Flow-13.90M-13.90M33.20M1.20M29.30M-27.30M

discoverIE Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price606.00
Price Trends
50DMA
672.63
Negative
100DMA
633.65
Negative
200DMA
626.69
Negative
Market Momentum
MACD
-15.13
Positive
RSI
32.08
Neutral
STOCH
16.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DSCV, the sentiment is Negative. The current price of 606 is below the 20-day moving average (MA) of 649.60, below the 50-day MA of 672.63, and below the 200-day MA of 626.69, indicating a bearish trend. The MACD of -15.13 indicates Positive momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 16.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DSCV.

discoverIE Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£2.35B24.0611.07%1.73%4.71%0.43%
71
Outperform
£579.74M23.658.07%2.06%-3.23%58.34%
61
Neutral
$35.43B7.71-10.08%1.88%8.71%-9.18%
57
Neutral
£134.22M24.654.79%2.67%1.74%359.50%
54
Neutral
£438.83M42.1112.29%1.58%-1.84%9.56%
52
Neutral
£179.24M-22.95%5.08%-15.12%-690.29%
51
Neutral
£88.68M173.890.81%2.38%-23.42%-94.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DSCV
discoverIE Group plc
606.00
-20.31
-3.24%
GB:GHH
Gooch & Housego
495.00
37.33
8.16%
GB:JDG
Judges Scientific
6,600.00
-3,522.18
-34.80%
GB:RSW
Renishaw
3,230.00
-215.23
-6.25%
GB:SOLI
Solid State
156.50
-114.04
-42.15%
GB:TTG
TT Electronics
101.00
-53.50
-34.63%

discoverIE Group plc Corporate Events

DividendsBusiness Operations and Strategy
discoverIE Group Director Increases Shareholding
Positive
Aug 14, 2025

discoverIE Group plc announced that Clive Watson, a Non-Executive Director, and his wife Mary Watson, acquired additional ordinary shares through a dividend reinvestment plan. This acquisition reflects a minor increase in their shareholding, with Clive Watson now holding approximately 0.04% of the company’s voting share capital. The transactions were conducted on the London Stock Exchange, highlighting ongoing confidence in the company’s performance and strategic direction.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
discoverIE Group’s Finance Director Increases Stake in Company
Positive
Aug 13, 2025

discoverIE Group plc announced that Simon Gibbins, the Group Finance Director, acquired 4,947 ordinary shares, increasing his interest to approximately 0.45% of the company’s issued share capital. This acquisition is part of a broader strategy to strengthen the company’s financial position and stakeholder confidence, aligning with its sustainable growth objectives in key markets.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Shareholder Meetings
discoverIE Group plc Secures Shareholder Approval Amidst Some Dissent
Neutral
Jul 24, 2025

discoverIE Group plc announced that all resolutions were approved at its recent Annual General Meeting, with significant shareholder support. However, the board noted that over 20% of votes were cast against certain resolutions related to share allotment, indicating some shareholder concerns. The board remains committed to engaging with shareholders to align future governance decisions with their views.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
discoverIE Group Reports Steady Q1 Performance Amid Market Challenges
Neutral
Jul 24, 2025

discoverIE Group plc reported that its trading performance for the first quarter of the financial year ending March 2026 was in line with expectations, with a 3% increase in Group sales compared to the previous year. While three of its four operating units showed organic sales growth, the Controls unit experienced subdued demand. Despite a 4% decrease in Group orders due to a strong previous quarter, underlying orders grew by 2% organically. The Group remains well-positioned for growth with a strong order book and robust cash flow.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
discoverIE Group plc Releases 2025 Annual Report and AGM Notice
Neutral
Jun 19, 2025

discoverIE Group plc has announced the submission of its Annual Report and Accounts for the year ended 31 March 2025, along with the Notice of Annual General Meeting, to the National Storage Mechanism. These documents are also accessible on the company’s website and have been mailed to shareholders opting for paper communications. This announcement underscores discoverIE’s commitment to transparency and stakeholder engagement, reflecting its strategic focus on sustainable growth and maintaining strong customer relationships in its key markets.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Other
Montanaro Reduces Stake in DiscoverIE Group
Neutral
Jun 18, 2025

DiscoverIE Group plc, a UK-based company, has announced a change in the voting rights held by Montanaro Asset Management Limited. The asset management firm has reduced its voting rights in DiscoverIE from 4.19% to 3.86%, as of June 16, 2025. This change reflects a disposal of voting rights, which could impact the company’s shareholder dynamics and influence in decision-making processes.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Business Operations and Strategy
Swedbank Robur Fonder AB Increases Stake in discoverIE Group plc
Neutral
Jun 16, 2025

Swedbank Robur Fonder AB has increased its voting rights in discoverIE Group plc to 5.06% as of June 13, 2025, up from a previous position of 4.01%. This acquisition of voting rights signifies a notable shift in shareholder influence within the company, potentially impacting its strategic decisions and stakeholder interests.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
discoverIE Group Grants LTIP and DSBP Awards to Key Directors
Positive
Jun 12, 2025

discoverIE Group plc announced the granting of options over ordinary shares under its Long-Term Incentive Plan (LTIP) and Deferred Share Bonus Plan (DSBP) to key directors, Nick Jefferies and Simon Gibbins. These awards, which vest in 2028, are part of the company’s strategy to incentivize leadership and align their interests with long-term company performance, potentially impacting stakeholder confidence and the company’s market positioning.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £755.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
discoverIE Group Reports Strong Earnings and Upgrades Margin Target Amid Industry Challenges
Positive
Jun 4, 2025

discoverIE Group plc announced its preliminary results for the fiscal year ending March 31, 2025, showcasing a strong performance despite a 3% decline in sales due to industry-wide inventory corrections. The company reported record earnings, with adjusted operating profits up by 8% at constant exchange rates and a significant increase in cash flow. The adjusted operating margin exceeded targets, reaching 14.3%, and the company upgraded its medium-term operating margin target to 17% by FY 2029/30. Orders showed a positive trend, growing by 2% organically, and the company completed two bolt-on acquisitions, enhancing its market position. With a strong pipeline of opportunities and a focus on high-growth markets, discoverIE is well-positioned for continued resilience and growth.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £815.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

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.Date of analysis: Aug 15, 2025