discoverIE Group plc (DSCV) AI Stock Analysis

• Market Cap: £681.15M
• Dividend Yield: 2.44%
• Average Volume (3M): 210.00K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.46
• Revenue Growth: -3.23%
• EPS Growth: 58.34%
• Country: UK
• Employees: 4,500
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 96,356,110
• 10 Day Avg. Volume: 155,423
• 30 Day Avg. Volume: 210,001
• PEG Ratio: 0.48
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.63
• 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: £841.43
• Price Target Upside: 19.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: 8.00p ▼(-98.87%Downside)

discoverIE Group plc is well-positioned with strong financial health and positive technical indicators. While the valuation suggests a slight overvaluation, recent corporate events and strategic initiatives support future growth prospects, contributing to a favorable stock outlook.

Positive Factors

Financial Performance

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

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 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 primarily through its Design & Manufacturing division, which involves designing, engineering, and producing customized electronic components and systems for industrial applications. This segment is a significant contributor to the company's earnings due to its high-value, bespoke solutions that cater to specific client requirements across various industries. Another revenue stream is the Custom Supply division, which involves sourcing and supplying electronic components to customer specifications, thereby supporting their operational needs. Key factors contributing to discoverIE's earnings include strategic partnerships with original equipment manufacturers (OEMs) and continuous investment in innovation to develop advanced technologies, ensuring a competitive edge in the market.

discoverIE Group plc Financial Statement Overview

Summary

The company exhibits strong financial health with effective profitability and cash generation. Despite solid margins, challenges exist in sustaining revenue growth, and 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	422.90M	437.00M	448.90M	379.20M	302.80M
Gross Profit	181.50M	177.00M	36.30M	27.40M	104.00M
EBITDA	74.50M	62.90M	63.10M	46.00M	35.20M
Net Income	24.60M	15.50M	21.30M	19.00M	12.00M
Balance Sheet
Total Assets	695.00M	668.70M	585.70M	592.70M	428.20M
Cash, Cash Equivalents and Short-Term Investments	139.30M	110.80M	83.90M	108.80M	29.20M
Total Debt	261.00M	234.90M	145.40M	160.10M	97.90M
Total Liabilities	387.00M	367.10M	282.10M	302.30M	219.80M
Stockholders Equity	308.00M	301.60M	303.60M	290.40M	208.40M
Cash Flow
Free Cash Flow	40.30M	36.30M	32.10M	25.10M	42.40M
Operating Cash Flow	46.40M	41.20M	37.70M	31.30M	46.30M
Investing Cash Flow	-19.30M	-83.80M	-30.70M	-53.00M	-24.40M
Financing Cash Flow	-13.90M	33.20M	1.20M	29.30M	-27.30M

discoverIE Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 705.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 705 is above the 20-day moving average (MA) of 672.03, above the 50-day MA of 641.91, and above the 200-day MA of 619.59, indicating a bullish trend. The MACD of 17.50 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 82.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCV	78 Outperform	£681.15M	27.79	8.07%	2.44%	-3.23%	58.34%
SOLI	78 Outperform	£104.26M	204.44	0.81%	0.89%	-11.80%	-32.11%
RSW	74 Outperform	£2.09B	21.38	11.07%	0.87%	4.71%	0.43%
JDG	72 Outperform	£551.78M	52.95	12.29%	1.82%	-1.84%	9.56%
GHH	65 Neutral	£163.23M	29.98	4.79%	1.61%	1.74%	359.50%
TTG	54 Neutral	£193.43M	―	-22.95%	3.12%	-15.12%	-690.29%
Sector *	50 Neutral	AU$1.51B	2.04	-28.25%	3.26%	16.21%	-7.40%

discoverIE Group plc Corporate Events

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.

BlackRock Increases Stake in DiscoverIE Group

DiscoverIE Group plc, a UK-based company, announced a change in voting rights due to BlackRock, Inc.’s acquisition of shares. BlackRock’s voting rights increased to 6.24% from 6.01%, indicating a strategic move that may influence DiscoverIE’s shareholder dynamics and potentially impact its future decisions.

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.

discoverIE Group to Announce Full Year Results on 4 June 2025

discoverIE Group plc announced that it will release its Full Year Results for the year ending 31 March 2025 on 4 June 2025. The results will be presented at an analyst meeting in London and will be accessible via a live webcast. This announcement reflects the company’s ongoing commitment to transparency and engagement with stakeholders, as it continues to focus on structural growth markets and sustainability.

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.

Impax Asset Management Adjusts Stake in discoverIE Group

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.

discoverIE Group plc Anticipates Record Profits Amid Strong Operational Performance

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.