discoverIE Group plc (GB:DSCV)
LSE:DSCV
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discoverIE Group plc
(LSE:DSCV)
Select Model
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Rating:77Outperform
Price Target:
610.00 p
▼(-6.73% Downside)
Action:UpgradedDate:12/07/25
discoverIE Group plc shows strong financial health and positive technical indicators, supported by strategic acquisitions that enhance growth potential. However, challenges in revenue growth and a relatively high P/E ratio suggest caution. The company's strategic focus on acquisitions and organic growth positions it well for future expansion, but valuation concerns could limit immediate upside.
Positive Factors
Strong cash generation
discoverIE converts earnings into cash effectively: free cash flow grew 11.02% and operating cash flow to net income is 1.89. Durable cash generation supports capex, working capital, dividends and bolt-on M&A without immediate reliance on external markets, improving resilience across cycles.
Negative Factors
Revenue contraction
A -3.26% revenue decline signals demand weakness or lost share that can persist. Sustained top-line contraction undermines operating leverage and reinvestment capacity, forcing either margin recovery or reliance on acquisitions to sustain medium‑term growth targets and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
discoverIE converts earnings into cash effectively: free cash flow grew 11.02% and operating cash flow to net income is 1.89. Durable cash generation supports capex, working capital, dividends and bolt-on M&A without immediate reliance on external markets, improving resilience across cycles.
Read all positive factors
discoverIE Group plc (DSCV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£589.22M
Dividend Yield2.09%
Average Volume (3M)220.34K
Price to Earnings (P/E)10.7
Beta (1Y)1.58
Revenue Growth0.49%
EPS Growth61.73%
CountryUK
Employees4,500
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.20
Shares Outstanding97,356,110
10 Day Avg. Volume230,887
30 Day Avg. Volume220,337
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.70
Price to Sales (P/S)1.24
P/FCF Ratio12.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£842.50Price Target Upside28.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.44
Revenue Forecast (FY)£474.02M
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 makes money primarily by selling its own engineered electronic components and subsystems to OEM customers, typically for integration into customers’ end products. Revenue is generated mainly through: (1) Product sales from its Magnetics...
discoverIE Group plc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 428.20M | 422.90M | 437.00M | 448.90M | 379.20M | 302.80M |
| Gross Profit | 186.40M | 181.50M | 177.00M | 36.30M | 27.40M | 104.00M |
| EBITDA | 76.20M | 74.50M | 62.90M | 63.10M | 46.00M | 37.60M |
| Net Income | 25.90M | 24.60M | 15.50M | 21.30M | 19.00M | 12.00M |
Balance Sheet | ||||||
| Total Assets | 691.40M | 695.00M | 668.70M | 585.70M | 592.70M | 428.20M |
| Cash, Cash Equivalents and Short-Term Investments | 140.90M | 139.30M | 110.80M | 83.90M | 108.80M | 29.20M |
| Total Debt | 262.30M | 261.00M | 234.90M | 145.40M | 160.10M | 97.90M |
| Total Liabilities | 378.10M | 387.00M | 367.10M | 282.10M | 302.30M | 219.80M |
| Stockholders Equity | 313.30M | 308.00M | 301.60M | 303.60M | 290.40M | 208.40M |
Cash Flow | ||||||
| Free Cash Flow | 46.40M | 40.30M | 36.30M | 32.10M | 25.10M | 42.40M |
| Operating Cash Flow | 52.40M | 46.40M | 41.20M | 37.70M | 31.30M | 46.30M |
| Investing Cash Flow | -23.30M | -19.30M | -83.80M | -30.70M | -53.00M | -24.40M |
| Financing Cash Flow | -23.50M | -13.90M | 33.20M | 1.20M | 29.30M | -27.30M |
discoverIE Group plc Technical Analysis
Positive
654.00
Price Trends
599.66
Positive
601.39
Positive
610.72
Positive
Market Momentum
9.25
Negative
69.16
Neutral
88.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DSCV, the sentiment is Positive. The current price of 654 is above the 20-day moving average (MA) of 568.35, above the 50-day MA of 599.66, and above the 200-day MA of 610.72, indicating a bullish trend. The MACD of 9.25 indicates Negative momentum. The RSI at 69.16 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | £589.22M | 10.73 | 8.34% | 2.09% | 0.49% | 61.73% | |
68 Neutral | £89.40M | 20.27 | 16.76% | ― | -3.41% | 58.10% | |
67 Neutral | £232.65M | 25.56 | 3.10% | 2.19% | 10.66% | 21.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £283.07M | 135.40 | 12.26% | 1.89% | 5.46% | -26.44% | |
54 Neutral | £214.05M | -4.02 | -31.21% | ― | -16.33% | -448.12% | |
54 Neutral | £99.56M | -24.70 | -5.90% | ― | -7.35% | -222.10% |
* Technology Sector Average
GB:DSCV
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discoverIE Group plc Corporate Events
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 ...
Regulatory Filings and Compliance
discoverIE Non-Executive Director Increases Stake via Dividend Reinvestment
Neutral
Feb 12, 2026
discoverIE Group plc reported that non-executive director Clive Watson acquired 200 ordinary shares in the company on 12 February 2026 via a dividend reinvestment plan. Following this transaction, Watson’s holding increased to 37,136 shares,...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
discoverIE Maintains Growth Momentum in Q3 and Advances Acquisition Strategy
Positive
Feb 2, 2026
discoverIE Group plc reported a steady third quarter to 31 December 2025, with group sales up 5% at constant exchange rates and 1% organically, while orders grew 9% at constant exchange rates and 4% organically, yielding a positive book-to-bill ra...
DividendsRegulatory Filings and Compliance
discoverIE Finance Director Increases Stake Through Dividend Reinvestment
Positive
Jan 29, 2026
discoverIE Group plc has disclosed that Group Finance Director Simon Gibbins acquired 2,601 ordinary shares in the company on 26 January 2026 through a dividend reinvestment plan, at a price of 622.6 pence per share. Following this transaction, Gi...
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.