LSE:DSCV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with proven track record.

Share Price & News

How has discoverIE Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.4%

DSCV

-0.004%

GB Electronic

1.9%

GB Market


1 Year Return

14.6%

DSCV

5.7%

GB Electronic

2.4%

GB Market

Return vs Industry: DSCV exceeded the UK Electronic industry which returned 5.7% over the past year.

Return vs Market: DSCV exceeded the UK Market which returned 2.4% over the past year.


Shareholder returns

DSCVIndustryMarket
7 Day6.4%-0.004%1.9%
30 Day-4.0%-5.4%-1.1%
90 Day0.7%-5.2%-1.8%
1 Year17.2%14.6%7.4%5.7%7.4%2.4%
3 Year86.3%72.8%45.3%38.7%18.2%3.7%
5 Year144.0%113.9%117.7%99.3%35.7%6.1%

Price Volatility Vs. Market

How volatile is discoverIE Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is discoverIE Group undervalued compared to its fair value and its price relative to the market?

21.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DSCV (£4.32) is trading above our estimate of fair value (£3.2)

Significantly Undervalued: DSCV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DSCV is poor value based on its PE Ratio (21.6x) compared to the Electronic industry average (20.1x).

PE vs Market: DSCV is poor value based on its PE Ratio (21.6x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DSCV is overvalued based on its PB Ratio (2.4x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is discoverIE Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSCV's forecast earnings growth (7.6% per year) is above the savings rate (1.2%).

Earnings vs Market: DSCV's earnings (7.6% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: DSCV's earnings are forecast to grow, but not significantly.

Revenue vs Market: DSCV's revenue (3.6% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: DSCV's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DSCV's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has discoverIE Group performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DSCV's earnings have grown significantly by 32.5% per year over the past 5 years.

Accelerating Growth: DSCV's earnings growth over the past year (37.7%) exceeds its 5-year average (32.5% per year).

Earnings vs Industry: DSCV earnings growth over the past year (37.7%) exceeded the Electronic industry -7.7%.


Return on Equity

High ROE: DSCV's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: DSCV's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: DSCV has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is discoverIE Group's financial position?


Financial Position Analysis

Short Term Liabilities: DSCV's short term assets (£179.1M) exceeds its short term liabilities (£96.0M)

Long Term Liabilities: DSCV's short term assets (179.1M) exceeds its long term liabilities (97.6M)


Debt to Equity History and Analysis

Debt Level: DSCV's debt to equity ratio (64%) is considered high

Reducing Debt: DSCV's debt to equity ratio has increased from 33.6% to 64% over the past 5 years.

Debt Coverage: DSCV's debt is well covered by operating cash flow (26%).

Interest Coverage: DSCV's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: DSCV has a high level of physical assets or inventory.

Debt Coverage by Assets: DSCV's debt is covered by short term assets (assets are 2.077720x debt).


Next Steps

Dividend

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

2.21%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DSCV's dividend (2.21%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: DSCV's dividend (2.21%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), DSCV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DSCV's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

What is the CEO of discoverIE Group's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average management tenure


CEO

Nick Jefferies (53yo)

10.8yrs

Tenure

UK£1,797,000

Compensation

Mr. Nicholas J. Jefferies, also known as Nick, has been the Group Chief Executive of Acal Plc since January 5, 2009. Mr. Jefferies served as Vice President of Sales and Customer Marketing of Eurodis Electr ...


CEO Compensation Analysis

Compensation vs. Market: Nick's total compensation ($USD2.31M) is about average for companies of similar size in the UK market ($USD874.66K).

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


Management Age and Tenure

9.3yrs

Average Tenure

Experienced Management: DSCV's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: DSCV's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£20,00018 Apr 19
Malcolm Diamond
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,000
Max PriceUK£4.00
BuyUK£32,00018 Apr 19
Bruce Thompson
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares8,000
Max PriceUK£4.00
BuyUK£20,00018 Apr 19
Simon Gibbins
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares5,000
Max PriceUK£4.00
BuyUK£19,99205 Dec 18
Malcolm Diamond
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,362
Max PriceUK£3.73

Ownership Breakdown


Management Team

  • Nick Jefferies (53yo)

    Group Chief Executive & Director

    • Tenure: 10.8yrs
    • Compensation: UK£1.80m
  • Simon Gibbins (52yo)

    Group Finance Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£881.00k
  • Jeremy Morcom

    Group Head of Corporate Development

    • Tenure: 2.6yrs

Board Members

  • Malcolm Diamond (71yo)

    Non-Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£135.00k
  • Bruce Thompson (64yo)

    Senior Independent Director

    • Tenure: 0.6yrs
    • Compensation: UK£45.00k
  • Nick Jefferies (53yo)

    Group Chief Executive & Director

    • Tenure: 10.8yrs
    • Compensation: UK£1.80m
  • Tracey Graham (54yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£45.00k
  • Clive Watson (61yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Simon Gibbins (52yo)

    Group Finance Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£881.00k

Company Information

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


Key Information

  • Name: discoverIE Group plc
  • Ticker: DSCV
  • Exchange: LSE
  • Founded: 1986
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: UK£348.499m
  • Shares outstanding: 80.67m
  • Website: https://www.discoverieplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DSCVLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
9A5BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

discoverIE Group plc designs, manufactures, and supplies components for electronic applications worldwide. It operates through two divisions, Design and Manufacturing, and Custom Supply. The company also o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:36
End of Day Share Price2019/10/16 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.