LSE:DSCV

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 8.21% per year

Risk Analysis

No risks detected for DSCV from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable 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

Stable Share Price: DSCV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DSCV's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-9.9%

DSCV

1.9%

GB Electronic

1.3%

GB Market


1 Year Return

2.2%

DSCV

12.1%

GB Electronic

-6.4%

GB Market

Return vs Industry: DSCV underperformed the UK Electronic industry which returned 11.5% over the past year.

Return vs Market: DSCV exceeded the UK Market which returned -6.8% over the past year.


Shareholder returns

DSCVIndustryMarket
7 Day-9.9%1.9%1.3%
30 Day-3.1%1.7%14.1%
90 Day-8.2%7.9%9.6%
1 Year2.7%2.2%13.1%12.1%-2.7%-6.4%
3 Year66.3%58.3%40.0%34.6%3.9%-8.6%
5 Year127.4%103.6%144.1%126.3%34.6%4.4%

Long-Term 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?

41.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DSCV (£5.62) is trading above our estimate of fair value (£4.26)

Significantly Below Fair Value: 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 (41x) compared to the GB Electronic industry average (32.5x).

PE vs Market: DSCV is poor value based on its PE Ratio (41x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: DSCV is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: DSCV's PB Ratio (2.4x) is in line with the GB Electronic industry average.


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSCV's forecast earnings growth (8.2% per year) is above the savings rate (1.2%).

Earnings vs Market: DSCV's earnings (8.2% per year) are forecast to grow slower than the UK market (27% per year).

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

Revenue vs Market: DSCV's revenue (4.9% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: DSCV's revenue (4.9% 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 (11.8%).


Next Steps

Past Performance

How has discoverIE Group performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSCV has high quality earnings.

Growing Profit Margin: DSCV's current net profit margins (2.7%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: DSCV's earnings have grown significantly by 22.6% 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 (-27.9%) over the past year, making it difficult to compare to the Electronic industry average (-2.3%).


Return on Equity

High ROE: DSCV's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is discoverIE Group's financial position?


Financial Position Analysis

Short Term Liabilities: DSCV's short term assets (£182.1M) exceed its short term liabilities (£101.6M).

Long Term Liabilities: DSCV's short term assets (£182.1M) exceed its long term liabilities (£105.7M).


Debt to Equity History and Analysis

Debt Level: DSCV's debt to equity ratio (35%) is considered satisfactory.

Reducing Debt: DSCV's debt to equity ratio has reduced from 40.4% to 35% over the past 5 years.

Debt Coverage: DSCV's debt is well covered by operating cash flow (72.9%).

Interest Coverage: DSCV's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.12%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DSCV's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.68%).

High Dividend: DSCV's dividend (1.12%) is low compared to the top 25% of dividend payers in the UK market (4.85%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), 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 (36.7% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Nick Jefferies (54 yo)

11.92yrs

Tenure

UK£2,094,000

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 ($USD2.79M) is above average for companies of similar size in the UK market ($USD1.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Jefferies
Group Chief Executive & Executive Director11.92yrsUK£2.09m1.08%
£ 5.8m
Simon Gibbins
Group Finance Director & Executive Director10.42yrsUK£1.06m0.30%
£ 1.6m
Greg Davidson
Group General Counsel1.08yrsno datano data
Jeremy Morcom
Group Head of Corporate Development3.75yrsno datano data

7.1yrs

Average Tenure

Experienced Management: DSCV's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Jefferies
Group Chief Executive & Executive Director11.92yrsUK£2.09m1.08%
£ 5.8m
Simon Gibbins
Group Finance Director & Executive Director10.42yrsUK£1.06m0.30%
£ 1.6m
Greg Davidson
Group General Counsel1.08yrsno datano data
Malcolm Diamond
Independent Non-Executive Chairman3.67yrsUK£140.00k0.031%
£ 163.4k
Bruce Thompson
Senior Independent Director1.75yrsUK£54.00k0.028%
£ 149.5k
Tracey Graham
Independent Non-Executive Director5.08yrsUK£54.00k0.010%
£ 56.0k
Clive Watson
Independent Non-Executive Director1.25yrsUK£31.50k0.014%
£ 74.7k

3.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DSCV's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£534.945m
  • Shares outstanding: 89.46m
  • 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
DSCVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

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 t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 19:26
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.