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Discoverie Group (GB:DSCV)
:DSCV

discoverIE Group plc (DSCV) AI Stock Analysis

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GB

discoverIE Group plc

(LSE:DSCV)

Rating:71Outperform
Price Target:
DiscoverIE Group plc demonstrates a robust financial position with strong cash flow management, despite challenges in revenue and profit margins. Positive corporate events and strategic acquisitions support a favorable outlook, although technical indicators and a high P/E ratio suggest cautious optimism. Continuous focus on revenue growth and profitability will be critical for sustaining performance.
Positive Factors
Earnings
DSCV's FY25 Prelims were ahead of consensus and contained some interesting evolution.
Order Growth
There is a 15% organic order growth in the fourth quarter across both divisions.
Negative Factors
End 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 Weakness
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 primarily through its Design & Manufacturing division, which provides bespoke electronic components and solutions. This division focuses on high-margin, long-term projects that involve designing and producing custom electronics for specific client needs. The Custom Supply division supplements revenue by sourcing and supplying standard electronic components. The company's revenue streams are diversified across various industrial sectors, with a significant portion derived from international markets. Strategic partnerships and a customer-centric approach, offering value-added services and solutions, further enhance its profitability.

discoverIE Group plc Financial Statement Overview

Summary
discoverIE Group plc exhibits a solid financial foundation with strengths in cash flow management and a stable balance sheet. While there are improvements in gross profitability, challenges remain in terms of revenue growth and net profit margins. The company maintains a strong position in managing its debt and equity, providing financial stability. Continued focus on enhancing revenue growth and profitability will be crucial for future performance.
Income Statement
68
Positive
The income statement shows a mixed performance. The company experienced a revenue decline from 448.9 million in 2023 to 437 million in 2024, representing a negative growth rate. However, the gross profit margin improved significantly from 8.08% to 40.5%, which indicates better cost management or improved product pricing. The net profit margin decreased from 4.74% to 3.55%, suggesting challenges in controlling expenses or pricing pressures. The EBIT and EBITDA margins are stable, demonstrating consistent operational efficiency.
Balance Sheet
74
Positive
The balance sheet reflects a stable financial position with an improved debt-to-equity ratio of 0.78, down from 0.48, indicating a manageable leverage level. The equity ratio remains strong at 45.12%, showing a solid equity base. Return on equity dropped slightly to 5.14% from 7.01%, suggesting a need for better returns on equity investments. Overall, the balance sheet shows financial stability with some room for improved profitability.
Cash Flow
81
Very Positive
The cash flow statement highlights strong cash generation capabilities. Operating cash flow increased to 41.2 million, supporting a healthy operating cash flow to net income ratio of 2.66. Free cash flow also grew, with a modest growth rate of 13.04% compared to the previous year. The free cash flow to net income ratio of 2.34 indicates robust cash flow generation relative to net income, which is a positive indicator of financial health.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
437.00M448.90M379.20M302.80M466.40M
Gross Profit
177.00M36.30M27.40M104.00M147.70M
EBIT
31.20M36.30M27.40M18.30M27.50M
EBITDA
62.90M63.10M46.00M35.20M45.40M
Net Income Common Stockholders
15.50M21.30M19.00M12.00M14.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
110.80M83.90M108.80M29.20M36.80M
Total Assets
668.70M585.70M592.70M428.20M433.80M
Total Debt
234.90M145.40M160.10M97.90M118.10M
Net Debt
124.10M61.50M51.30M68.70M81.30M
Total Liabilities
367.10M282.10M302.30M219.80M233.30M
Stockholders Equity
301.60M303.60M290.40M208.40M200.50M
Cash FlowFree Cash Flow
36.30M32.10M25.10M42.40M31.60M
Operating Cash Flow
41.20M37.70M31.30M46.30M37.90M
Investing Cash Flow
-83.80M-30.70M-53.00M-24.40M-79.90M
Financing Cash Flow
33.20M1.20M29.30M-27.30M56.40M

discoverIE Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price687.00
Price Trends
50DMA
585.97
Positive
100DMA
590.15
Positive
200DMA
619.37
Positive
Market Momentum
MACD
25.85
Negative
RSI
59.61
Neutral
STOCH
56.04
Neutral
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 687 is above the 20-day moving average (MA) of 638.35, above the 50-day MA of 585.97, and above the 200-day MA of 619.37, indicating a bullish trend. The MACD of 25.85 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 56.04 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£110.49M20.728.61%1.91%-11.80%-32.11%
GBRSW
74
Outperform
£1.91B19.5911.07%2.90%4.71%0.43%
71
Outperform
£643.84M26.278.07%1.77%-5.56%-27.87%
GBGHH
70
Outperform
£140.79M27.194.79%2.22%1.74%359.50%
GBJDG
70
Neutral
£525.16M50.4012.29%1.24%-1.84%9.56%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
GBTTG
53
Neutral
£171.03M-22.95%7.17%-15.12%-690.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DSCV
discoverIE Group plc
676.00
-25.62
-3.65%
GB:GHH
Gooch & Housego
594.00
78.51
15.23%
GB:JDG
Judges Scientific
8,000.00
-2,118.27
-20.94%
GB:RSW
Renishaw
2,715.00
-1,149.91
-29.75%
GB:SOLI
Solid State
195.00
-101.12
-34.15%
GB:TTG
TT Electronics
101.80
-45.81
-31.03%

discoverIE Group plc Corporate Events

Business Operations and Strategy
Impax Asset Management Adjusts Stake in discoverIE Group
Neutral
Apr 16, 2025

Impax Asset Management Group plc has reduced its voting rights in discoverIE Group plc from 5.042498% to 4.982983%, as of April 14, 2025. This change reflects a slight adjustment in Impax’s holdings, which may influence discoverIE’s shareholder dynamics and potentially impact strategic decisions within the company.

Spark’s Take on GB:DSCV Stock

According to Spark, TipRanks’ AI Analyst, GB:DSCV is a Neutral.

discoverIE Group plc scores a 64, reflecting a solid financial base, strong cash flow, and strategic confidence from recent corporate activities. However, the stock faces challenges with bearish technical indicators and a high P/E ratio, which could deter some investors. Continued focus on revenue growth and profitability will be key for future performance.

To see Spark’s full report on GB:DSCV stock, click here.

Business Operations and StrategyFinancial Disclosures
discoverIE Group plc Anticipates Record Profits Amid Strong Operational Performance
Positive
Apr 16, 2025

discoverIE Group plc reported a strong finish to its financial year ending March 31, 2025, with expectations of record underlying profits and earnings. The company experienced sequential and organic growth in orders and sales, despite a slight decrease in group sales compared to the previous year due to currency impacts and organic sales reduction. The Group’s operational performance remains robust, with improved margins and cash flow, and it plans to increase US manufacturing to mitigate tariff impacts. discoverIE is well-positioned for continued resilience and growth, leveraging both organic and inorganic opportunities amid volatile market conditions.

Spark’s Take on GB:DSCV Stock

According to Spark, TipRanks’ AI Analyst, GB:DSCV is a Neutral.

discoverIE Group plc scores a 64, reflecting a solid financial base, strong cash flow, and strategic confidence from recent corporate activities. However, the stock faces challenges with bearish technical indicators and a high P/E ratio, which could deter some investors. Continued focus on revenue growth and profitability will be key for future performance.

To see Spark’s full report on GB:DSCV stock, click here.

Business Operations and Strategy
Van Lanschot Kempen Boosts Stake in discoverIE Group
Neutral
Apr 9, 2025

Van Lanschot Kempen Investment Management NV has increased its voting rights in discoverIE Group plc from 8.05% to 9.09% as of April 6, 2025. This acquisition of voting rights may influence the company’s strategic decisions and reflects a growing interest from institutional investors, potentially impacting discoverIE’s market positioning and stakeholder interests.

Spark’s Take on GB:DSCV Stock

According to Spark, TipRanks’ AI Analyst, GB:DSCV is a Neutral.

discoverIE Group plc scores a 64, reflecting a solid financial base, strong cash flow, and strategic confidence from recent corporate activities. However, the stock faces challenges with bearish technical indicators and a high P/E ratio, which could deter some investors. Continued focus on revenue growth and profitability will be key for future performance.

To see Spark’s full report on GB:DSCV stock, click here.

Regulatory Filings and Compliance
BlackRock Adjusts Stake in DiscoverIE Group plc
Neutral
Mar 26, 2025

DiscoverIE Group plc, a UK-based company, announced a change in its voting rights structure due to BlackRock, Inc.’s acquisition or disposal of shares. As of March 25, 2025, BlackRock’s total voting rights in the company decreased slightly from 6.06% to 6.01%, indicating a minor adjustment in their holdings. This change reflects BlackRock’s ongoing management of its investment portfolio, which may have implications for stakeholders monitoring the company’s shareholder composition.

Business Operations and Strategy
discoverIE Directors Increase Shareholdings, Signaling Confidence in Growth Strategy
Positive
Mar 12, 2025

discoverIE Group plc announced that its Chairman, Bruce Thompson, and Group Finance Director, Simon Gibbins, have acquired additional ordinary shares in the company. These transactions, conducted on the London Stock Exchange, reflect the directors’ confidence in the company’s strategic direction and market positioning. The acquisitions are expected to strengthen stakeholder confidence and reinforce the company’s commitment to its growth and sustainability objectives.

Executive/Board Changes
discoverIE Group’s Director Joins Volution Group Board
Neutral
Mar 5, 2025

discoverIE Group plc has announced that Celia Baxter, a Non-Executive Director of the company, has been appointed as a Non-Executive Director of Volution Group plc. This appointment reflects discoverIE’s ongoing influence in the industry, potentially enhancing its strategic positioning and stakeholder relations.

Business Operations and Strategy
discoverIE Group plc Director’s Family Member Acquires Shares
Positive
Mar 3, 2025

discoverIE Group plc announced that Mary Watson, wife of Non-Executive Director Clive Watson, acquired 5,000 ordinary shares in the company. This transaction increases Clive Watson’s interest to 36,471 shares, representing approximately 0.04% of the company’s voting share capital. The acquisition reflects continued confidence in the company’s strategic direction and market positioning, which is focused on sustainable growth and innovation in the electronics industry.

Regulatory Filings and Compliance
DiscoverIE Group plc Announces Change in BlackRock’s Voting Rights
Neutral
Feb 26, 2025

DiscoverIE Group plc, a UK-based company, has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. The notification indicates that BlackRock’s total voting rights in DiscoverIE have decreased slightly from 6.27% to 6.06%, following a recent acquisition or disposal of voting rights. This adjustment reflects BlackRock’s ongoing management of its investment portfolio and may influence DiscoverIE’s shareholder dynamics.

Business Operations and Strategy
BlackRock Alters Stake in discoverIE Group plc
Neutral
Feb 18, 2025

BlackRock, Inc., a major shareholder, has recently adjusted its holdings in discoverIE Group plc, crossing a significant threshold in voting rights with a reduction from 6.34% to 6.27%. This transaction reflects changes in BlackRock’s investment strategy and could impact discoverIE’s market positioning, indicating a potential shift in shareholder dynamics that stakeholders should monitor.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Increases Stake in discoverIE Group plc
Neutral
Feb 17, 2025

discoverIE Group plc, a UK-based company, reported a change in major holdings involving BlackRock, Inc., which increased its voting rights in the company to 6.34%. This change, effective as of February 14, 2025, highlights BlackRock’s significant stake in discoverIE, potentially impacting the company’s governance and strategic direction.

DividendsBusiness Operations and Strategy
discoverIE Director Increases Stake with Share Acquisition
Positive
Feb 14, 2025

discoverIE Group plc announced that Clive Watson, a Non-Executive Director, has acquired 175 Ordinary Shares as part of a dividend reinvestment plan, bringing his total shareholding to 31,471 shares. This purchase, which represents approximately 0.03% of the company’s issued share capital, underscores management’s confidence in the company’s growth strategy and market position, particularly in its focus areas driven by sustainability and technological advancement.

Business Operations and StrategyRegulatory Filings and Compliance
Swedbank Robur Fonder AB Increases Stake in discoverIE Group plc
Neutral
Feb 5, 2025

In a recent filing, discoverIE Group plc announced a change in major shareholding by Swedbank Robur Fonder AB, which has increased its voting rights to 4.0122% from a previous 3.9603%. This transaction highlights a slight increase in influence by the Swedish investment firm, indicating a potential strategic interest in the company’s growth and market positioning.

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.