discoverIE Group plc (DSCV) AI Stock Analysis

• Market Cap: £514.69M
• Dividend Yield: 2.29%
• Average Volume (3M): 187.89K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.17
• Revenue Growth: -5.56%
• EPS Growth: -27.87%
• Country: UK
• Employees: 4,543
• Sector: Technology
• Sector Strength: 45
• Industry: Hardware & Equipment
• EPS (TTM): 0.17
• Shares Outstanding: 96,356,110
• 10 Day Avg. Volume: 219,278
• 30 Day Avg. Volume: 187,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.17
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: 783.33p
• Price Target Upside: 45.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

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.

Positive Factors

Gross Margins

The business enjoys very healthy Gross Margins, which suggests potential cost synergy benefits.

M&A Activity

The acquisition is considered a good fit for Discoverie's Sensor cluster and is not seen as overpaying.

Negative Factors

Interest Rates

Stubbornly high interest rates restrict EPS accretion.

discoverIE Group plc Business Overview & Revenue Model

Company Description

discoverIE Group plc (DSCV) is a leading international designer, manufacturer, and supplier of customized electronics to industrial and medical markets. The company operates through two main divisions: Design & Manufacturing and Custom Supply. discoverIE Group specializes in creating tailored solutions that are essential for the operation of its clients' products, focusing on sectors such as renewable energy, transportation, medical, and industrial connectivity.

How the Company Makes Money

discoverIE 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

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

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

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 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
437.00M	448.90M	379.20M	302.80M	466.40M
	Gross Profit
177.00M	36.30M	27.40M	104.00M	147.70M
	EBIT
31.20M	36.30M	27.40M	18.30M	27.50M
	EBITDA
62.90M	63.10M	46.00M	35.20M	45.40M
	Net Income Common Stockholders
15.50M	21.30M	19.00M	12.00M	14.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.80M	83.90M	108.80M	29.20M	36.80M
	Total Assets
668.70M	585.70M	592.70M	428.20M	433.80M
	Total Debt
234.90M	145.40M	160.10M	97.90M	118.10M
	Net Debt
124.10M	61.50M	51.30M	68.70M	81.30M
	Total Liabilities
367.10M	282.10M	302.30M	219.80M	233.30M
	Stockholders Equity
301.60M	303.60M	290.40M	208.40M	200.50M
Cash Flow		Free Cash Flow
36.30M	32.10M	25.10M	42.40M	31.60M
	Operating Cash Flow
41.20M	37.70M	31.30M	46.30M	37.90M
	Investing Cash Flow
-83.80M	-30.70M	-53.00M	-24.40M	-79.90M
	Financing Cash Flow
33.20M	1.20M	29.30M	-27.30M	56.40M

discoverIE Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 538.00
• 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 538 is below the 20-day moving average (MA) of 560.55, below the 50-day MA of 614.86, and below the 200-day MA of 649.69, indicating a bearish trend. The MACD of -22.87 indicates Negative momentum. The RSI at 31.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.16 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
VCT	74 Outperform	£860.89M	50.25	3.58%	5.99%	-5.21%	-72.13%
HLMA	73 Outperform	£9.79B	35.28	16.90%	0.86%	11.94%	20.48%
DSCV	64 Neutral	£514.69M	31.85	5.31%	2.29%	-5.56%	-27.87%
Sector *	58 Neutral	$21.35B	9.98	-18.95%	2.37%	5.03%	-22.66%
DPLM	54 Neutral	£5.39B	43.35	14.50%	1.42%	13.59%	6.14%

discoverIE Group plc Corporate Events

discoverIE Directors Increase Shareholdings, Signaling Confidence in Growth Strategy

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.

discoverIE Group’s Director Joins Volution Group Board

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.

discoverIE Group plc Director’s Family Member Acquires Shares

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.

DiscoverIE Group plc Announces Change in BlackRock’s Voting Rights

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.

BlackRock Alters Stake in discoverIE Group plc

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.

BlackRock Increases Stake in discoverIE Group plc

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.

discoverIE Director Increases Stake with Share Acquisition

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.

Swedbank Robur Fonder AB Increases Stake in discoverIE Group plc

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.

discoverIE Group Shows Resilience with Steady Q3 Performance and Strategic Acquisition

discoverIE Group plc reported a steady performance for the third quarter ended December 31, 2024, with sales maintaining year-on-year levels. Despite a slight decline in organic sales, the company experienced a recovery trend, particularly in the Sensing & Connectivity division. The acquisition of Burster, a specialist sensor manufacturer, positions discoverIE for continued growth. The group’s strong cash generation and a healthy order book indicate robust future prospects as the markets recover.

discoverIE Directors Increase Shareholdings, Signaling Confidence in Growth

discoverIE Group plc has announced recent share acquisitions by two of its directors under a dividend reinvestment plan. Clive Watson acquired 21 shares, while Simon Gibbins acquired 2,260 shares, reflecting modest increases in their stakes in the company. This activity highlights ongoing confidence in discoverIE’s performance and growth prospects, reinforcing its strategic positioning in the electronics industry.

discoverIE Group Acquires Burster to Enhance Sensor Capabilities

discoverIE Group plc has announced the acquisition of Burster Group, a German specialist sensor manufacturer, for an initial €30.6m, with the potential for additional earn-out payments. This acquisition is part of discoverIE’s strategy to expand its international presence and enhance its offerings in the high-performance, custom sensing market. Burster will join discoverIE’s Sensing cluster, benefiting from the group’s broad customer base and expertise. This move is expected to be accretive to earnings and operating margins, supporting discoverIE’s growth-focused approach and positioning it strongly in markets such as the Industrial Internet of Things, medical equipment, and robotics.

DiscoverIE Reports Change in Major Shareholdings

DiscoverIE Group plc, a UK-based company, has announced a change in major shareholdings involving Swedbank Robur Fonder AB. This adjustment reflects a slight decrease in Swedbank Robur Fonder AB’s voting rights from 4.000784% to 3.960309%, indicating a disposal of shares. Such changes could influence stakeholders’ perception of the company’s investor dynamics.