discoverIE Group plc (DSCV) AI Stock Analysis

• Market Cap: £559.65M
• Dividend Yield: 2.14%
• Average Volume (3M): 183.47K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.66
• Revenue Growth: -3.23%
• EPS Growth: 58.34%
• Country: UK
• Employees: 4,500
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 96,356,110
• 10 Day Avg. Volume: 186,892
• 30 Day Avg. Volume: 183,467
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £796.25
• Price Target Upside: 34.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: 725.00p ▲(22.05% 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

Management Confidence

Increased shareholding by directors and long-term incentives reflect strong management confidence in strategic direction, enhancing stakeholder trust.

Cash Generation

Effective cash generation supports operational stability and provides flexibility for strategic investments and debt management.

Market Position

Strategic acquisitions strengthen market position and expand product offerings, supporting long-term growth in high-demand sectors.

Negative Factors

Revenue Growth Challenges

Declining revenue growth poses a challenge to sustaining long-term expansion and may impact future profitability if not addressed.

Shareholder Dissent

Significant shareholder dissent could indicate governance concerns and may affect future strategic decisions if not resolved.

Subdued Demand in Controls Unit

Subdued demand in a key unit could hinder overall growth and requires strategic focus to revitalize performance in this segment.

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 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 Money

discoverIE 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.90M	422.90M	437.00M	448.90M	379.20M	302.80M
Gross Profit	127.40M	181.50M	177.00M	36.30M	27.40M	104.00M
EBITDA	69.40M	74.50M	62.90M	63.10M	46.00M	35.20M
Net Income	24.60M	24.60M	15.50M	21.30M	19.00M	12.00M
Balance Sheet
Total Assets	695.00M	695.00M	668.70M	585.70M	592.70M	428.20M
Cash, Cash Equivalents and Short-Term Investments	139.30M	139.30M	110.80M	83.90M	108.80M	29.20M
Total Debt	261.00M	261.00M	234.90M	145.40M	160.10M	97.90M
Total Liabilities	387.00M	387.00M	367.10M	282.10M	302.30M	219.80M
Stockholders Equity	308.00M	308.00M	301.60M	303.60M	290.40M	208.40M
Cash Flow
Free Cash Flow	42.70M	40.30M	36.30M	32.10M	25.10M	42.40M
Operating Cash Flow	48.10M	46.40M	41.20M	37.70M	31.30M	46.30M
Investing Cash Flow	-21.00M	-19.30M	-83.80M	-30.70M	-53.00M	-24.40M
Financing Cash Flow	-13.90M	-13.90M	33.20M	1.20M	29.30M	-27.30M

discoverIE Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 594.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 594 is below the 20-day moving average (MA) of 599.55, below the 50-day MA of 642.28, and below the 200-day MA of 621.23, indicating a bearish trend. The MACD of -12.59 indicates Negative momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSW	74 Outperform	2.63B	31.35	―	1.56%	3.15%	-13.57%
DSCV	71 Outperform	£559.65M	22.95	8.07%	2.14%	-3.23%	58.34%
JDG	62 Neutral	422.87M	38.41	11.97%	1.67%	5.46%	-26.44%
GHH	61 Neutral	151.84M	27.89	-5.88%	2.31%	1.74%	359.50%
TTG	58 Neutral	209.49M	-2.92	-27.40%	5.85%	-16.33%	-448.12%
SOLI	55 Neutral	96.33M	188.89	0.83%	1.52%	-23.42%	-94.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

discoverIE Group plc Corporate Events

discoverIE Group Director Increases Shareholding

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.

discoverIE Group’s Finance Director Increases Stake in Company

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.

discoverIE Group plc Secures Shareholder Approval Amidst Some Dissent

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.

discoverIE Group Reports Steady Q1 Performance Amid Market Challenges

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.

discoverIE Group plc Releases 2025 Annual Report and AGM Notice

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.

Montanaro Reduces Stake in DiscoverIE Group

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.

Swedbank Robur Fonder AB Increases Stake in discoverIE Group plc

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.

discoverIE Group Grants LTIP and DSBP Awards to Key Directors

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.

discoverIE Group Reports Strong Earnings and Upgrades Margin Target Amid Industry Challenges

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.