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DSCV

discoverIE Group LSE:DSCV Stock Report

Last Price

UK£6.31

Market Cap

UK£603.4m

7D

-8.6%

1Y

-33.6%

Updated

24 Jun, 2022

Data

Company Financials +
DSCV fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends2/6

DSCV Stock Overview

discoverIE Group plc designs, manufactures, and supplies components for electronic applications worldwide.

discoverIE Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for discoverIE Group
Historical stock prices
Current Share PriceUK£6.31
52 Week HighUK£12.74
52 Week LowUK£5.92
Beta0.64
1 Month Change-13.80%
3 Month Change-20.13%
1 Year Change-33.65%
3 Year Change50.24%
5 Year Change108.42%
Change since IPO223.59%

Recent News & Updates

Jun 17
discoverIE Group (LON:DSCV) Will Pay A Larger Dividend Than Last Year At UK£0.074

discoverIE Group (LON:DSCV) Will Pay A Larger Dividend Than Last Year At UK£0.074

discoverIE Group plc ( LON:DSCV ) has announced that it will be increasing its dividend on the 2nd of August to...

May 07
discoverIE Group's (LON:DSCV) Returns Have Hit A Wall

discoverIE Group's (LON:DSCV) Returns Have Hit A Wall

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Apr 19
Estimating The Fair Value Of discoverIE Group plc (LON:DSCV)

Estimating The Fair Value Of discoverIE Group plc (LON:DSCV)

Today we will run through one way of estimating the intrinsic value of discoverIE Group plc ( LON:DSCV ) by projecting...

Shareholder Returns

DSCVGB ElectricalGB Market
7D-8.6%-3.2%2.3%
1Y-33.6%-48.0%-8.6%

Return vs Industry: DSCV exceeded the UK Electrical industry which returned -47.9% over the past year.

Return vs Market: DSCV underperformed the UK Market which returned -10.4% over the past year.

Price Volatility

Is DSCV's price volatile compared to industry and market?
DSCV volatility
DSCV Average Weekly Movement6.4%
Electrical Industry Average Movement8.1%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: DSCV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DSCV's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19864,900Nick Jefferieshttps://www.discoverieplc.com

discoverIE Group plc designs, manufactures, and supplies components for electronic applications worldwide. It operates in two divisions, Design & Manufacturing, and Custom Supply. The company also offers technically demanding, customized electronic, photonic, and medical products to the industrial, medical, and healthcare markets.

discoverIE Group Fundamentals Summary

How do discoverIE Group's earnings and revenue compare to its market cap?
DSCV fundamental statistics
Market CapUK£603.36m
Earnings (TTM)UK£9.70m
Revenue (TTM)UK£379.20m

62.2x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSCV income statement (TTM)
RevenueUK£379.20m
Cost of RevenueUK£226.50m
Gross ProfitUK£152.70m
Other ExpensesUK£143.00m
EarningsUK£9.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin40.27%
Net Profit Margin2.56%
Debt/Equity Ratio24.0%

How did DSCV perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

104%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DSCV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DSCV?

Other financial metrics that can be useful for relative valuation.

DSCV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA14x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does DSCV's PE Ratio compare to its peers?

DSCV PE Ratio vs Peers
The above table shows the PE ratio for DSCV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.4x

Price-To-Earnings vs Peers: DSCV is expensive based on its Price-To-Earnings Ratio (62.2x) compared to the peer average (18.4x).


Price to Earnings Ratio vs Industry

How does DSCV's PE Ratio compare vs other companies in the Electrical Industry?

Price-To-Earnings vs Industry: DSCV is expensive based on its Price-To-Earnings Ratio (62.2x) compared to the UK Electrical industry average (24.9x)


Price to Earnings Ratio vs Fair Ratio

What is DSCV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DSCV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.2x
Fair PE Ratio27.4x

Price-To-Earnings vs Fair Ratio: DSCV is expensive based on its Price-To-Earnings Ratio (62.2x) compared to the estimated Fair Price-To-Earnings Ratio (27.4x).


Share Price vs Fair Value

What is the Fair Price of DSCV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DSCV (£6.31) is trading above our estimate of fair value (£4.97)

Significantly Below Fair Value: DSCV is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: DSCV is poor value based on its PEG Ratio (2.8x)


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Future Growth

How is discoverIE Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSCV's forecast earnings growth (22.3% per year) is above the savings rate (0.9%).

Earnings vs Market: DSCV's earnings (22.3% per year) are forecast to grow faster than the UK market (10.9% per year).

High Growth Earnings: DSCV's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DSCV's revenue (4% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: DSCV's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DSCV's Return on Equity is forecast to be low in 3 years time (13.1%).


Discover growth companies

Past Performance

How has discoverIE Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DSCV has a large one-off loss of £6.5M impacting its March 31 2022 financial results.

Growing Profit Margin: DSCV's current net profit margins (2.6%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: DSCV's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: DSCV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DSCV had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Electrical industry average (-2.9%).


Return on Equity

High ROE: DSCV's Return on Equity (3.3%) is considered low.


Discover strong past performing companies

Financial Health

How is discoverIE Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DSCV's short term assets (£196.8M) exceed its short term liabilities (£120.9M).

Long Term Liabilities: DSCV's short term assets (£196.8M) exceed its long term liabilities (£112.0M).


Debt to Equity History and Analysis

Debt Level: DSCV's net debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: DSCV's debt to equity ratio has reduced from 41.2% to 24% over the past 5 years.

Debt Coverage: DSCV's debt is well covered by operating cash flow (44.4%).

Interest Coverage: DSCV's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


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Dividend

What is discoverIE Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DSCV's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: DSCV's dividend (1.71%) is low compared to the top 25% of dividend payers in the UK market (5.23%).


Stability and Growth of Payments

Stable Dividend: DSCV's dividend payments have been volatile in the past 10 years.

Growing Dividend: DSCV's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (103.6%), DSCV's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.8%), DSCV's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average management tenure


CEO

Nick Jefferies (55 yo)

13.42yrs

Tenure

UK£1,717,000

Compensation

Mr. Nicholas J. Jefferies, also known as Nick, has been the Group Chief Executive of discoverIE Group plc (formerly known as Acal plc) since January 5, 2009. Mr. Jefferies served as Vice President of Sales...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD2.11M) is above average for companies of similar size in the UK market ($USD1.34M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DSCV's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: DSCV's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DSCV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.9%.


Top Shareholders

Company Information

discoverIE Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: discoverIE Group plc
  • Ticker: DSCV
  • Exchange: LSE
  • Founded: 1986
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: UK£603.356m
  • Shares outstanding: 95.62m
  • Website: https://www.discoverieplc.com

Number of Employees


Location

  • discoverIE Group plc
  • 2 Chancellor Court
  • Occam Road
  • Guildford
  • Surrey
  • GU2 7AH
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.