discoverIE Group plc (DSCV) AI Stock Analysis

• Market Cap: £552.95M
• Dividend Yield: 2.12%
• Average Volume (3M): 220.34K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.72
• 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: 230,887
• 30 Day Avg. Volume: 220,337
• 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: £820.00
• Price Target Upside: 41.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 659.00p ▲(13.62% Upside)

DiscoverIE Group plc demonstrates strong financial health with effective profitability and cash generation, which is the most significant factor in the overall score. However, technical analysis indicates mixed signals with potential bearish momentum, and valuation metrics suggest moderate attractiveness. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Cash Generation

DiscoverIE's strong cash generation ability ensures it can fund operations and investments internally, reducing reliance on external financing.

Balance Sheet Health

A stable balance sheet with prudent leverage enhances financial stability, allowing DiscoverIE to withstand economic fluctuations and invest in growth.

Profitability

Strong profitability margins indicate efficient operations and pricing power, supporting long-term financial health and competitive positioning.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may signal challenges in market demand or competitive pressures, potentially impacting future earnings and market share.

Long-term Growth Financing

Reliance on external financing for growth could increase financial risk, affecting DiscoverIE's ability to expand sustainably in the long term.

Net Profit Margin

A moderate net profit margin may limit DiscoverIE's ability to reinvest in business development and innovation, affecting competitive edge.

discoverIE Group plc Business Overview & Revenue Model

Company Description

discoverIE Group plc (DSCV) is a leading international designer and manufacturer of customised electronics for industrial applications, operating primarily in the markets of transportation, renewable energy, medical, and industrial technology. The company focuses on providing innovative and high-quality solutions that meet the specific needs of its customers across these sectors. Key product offerings include connectors, sensors, and other electronic components that are integral to the functionality of various systems and devices.

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: 580.00
• 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 580 is below the 20-day moving average (MA) of 585.95, below the 50-day MA of 595.40, and below the 200-day MA of 608.14, indicating a bearish trend. The MACD of -4.68 indicates Negative momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.69 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	69 Neutral	£2.53B	30.13	9.15%	2.16%	3.15%	-13.57%
DSCV	68 Neutral	£552.95M	22.56	8.07%	2.12%	-3.23%	58.34%
JDG	63 Neutral	£371.13M	33.70	12.24%	1.96%	5.46%	-26.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.36%	1.74%	359.50%
SOLI	55 Neutral	£79.58M	155.56	0.81%	1.71%	-23.42%	-94.25%
TTG	55 Neutral	£265.59M	-3.81	-31.42%	―	-16.33%	-448.12%

discoverIE Group plc Corporate Events

discoverIE Group Reports Strong First Half Performance and Growth

discoverIE Group plc reported a strong operational and cash performance for the first half of the financial year, with earnings aligning with Board expectations. Sales increased by 3% at constant exchange rates, with organic growth and contributions from acquisitions. While three of the four operating units showed good organic sales growth, the Controls unit experienced subdued demand. Orders grew by 5% at constant exchange rates, with a strong order book for the rest of the year. The company maintains robust gross margins and has significant capacity for acquisitions, positioning itself well for continued growth as market conditions stabilize.

The most recent analyst rating on (GB:DSCV) stock is a Hold with a £659.00 price target. To see the full list of analyst forecasts on discoverIE Group plc stock, see the GB:DSCV Stock Forecast page.

discoverIE Group 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.