olivLaw · European equity research
discoverIE Group plc DSCV.L
United Kingdom · London Stock Exchange · ISIN GB0000055888 · Vertical: Listed companies from United Kingdom
discoverIE Group designs and manufactures customised, high value-add electronic components for structurally growing markets: renewables, transport, medical, industrial and connectivity, plus security. In fiscal 2025/26 it returned to organic growth, with 79% of Group revenue from these target markets.
At the close of 05 Nov 2026, discoverIE Group plc (DSCV.L) stock was 7.75 GBP (−2.02% on the day), with market capitalisation 744.2 m GBP, P/E 26.4 on diluted EPS of 0.29 GBP over the last 12 months, dividend yield 167.74%, beta 0.95, 52-week range 5.14–8.95 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 40.1
- weak (30–45)
- Bollinger (20, 2)
- 7.70 – 8.87
- in the lower half of the band · %B 0.04 · band width 14.1%
- SMA 50 / 200
- 8.14 / 7.05
- mixed trend
- MACD (12, 26, 9)
- -0.03 / 0.03
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −10.4% | −0.6% | −9.8 pp | — |
| 3 months | −6.9% | −4.2% | −2.7 pp | — |
| 6 months | +14.0% | +4.3% | +9.6 pp | — |
| Year to date | +29.2% | +7.5% | +21.7 pp | — |
| 1 year | +31.1% | +9.9% | +21.2 pp | +5.8% |
| 3 years | +22.4% | +49.8% | −27.4 pp | +26.3% |
| 5 years | −29.0% | +42.8% | −71.9 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 3-quarter history (min 18.3, median 21.8, max 47.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 437.0 m | 422.9 m | 443.3 m |
| Revenue YoY | unavailable | −3.2% | +4.8% |
| Net income | 15.5 m | 24.6 m | 29.0 m |
| Net income YoY | unavailable | +58.7% | +17.9% |
| Diluted EPS | 0.16 | 0.25 | 0.29 |
| Diluted EPS YoY | unavailable | +58.2% | +17.6% |
| net % | 3.5% | 5.8% | 6.5% |
| Free cash flow | 36.4 m | 41.0 m | 39.6 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 125.3 m GBP
- Financial debt
- 110.2 m GBP
- Net debt
- -15.1 m GBP
- Equity
- 328.6 m GBP
- Total assets
- 694.6 m GBP
- Debt / equity
- 0.34x
- Current ratio
- 1.45x
- ROE
- 9.1%
- ROA
- 4.2%
- FCF margin
- 8.9%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 437.0 m | 422.9 m | 443.3 m | esef· 25 Jun 2026verified |
| Operating income | 31.2 m | 42.4 m | 45.2 m | esef· 25 Jun 2026verified |
| Interest expense | 12.9 m | 14.1 m | 11.8 m | esef· 25 Jun 2026verified |
| Pre-tax income | 22.2 m | 32.0 m | 36.1 m | esef· 25 Jun 2026verified |
| Income tax | 6.7 m | 7.4 m | 7.1 m | esef· 25 Jun 2026verified |
| Net income | 15.5 m | 24.6 m | 29.0 m | esef· 25 Jun 2026verified |
| Diluted EPS | 0.16 | 0.25 | 0.29 | esef· 25 Jun 2026verified |
| Dividend per share | 0.12 | 12.50 | 13.00 | esef· 25 Jun 2026verified |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 110.8 m | 139.3 m | 125.3 m | esef· 25 Jun 2026verified |
| Receivables | 88.8 m | 74.4 m | 85.7 m | esef· 25 Jun 2026verified |
| Inventories | 80.1 m | 82.9 m | 85.4 m | esef· 25 Jun 2026verified |
| Current assets | 287.7 m | 298.1 m | 299.5 m | esef· 25 Jun 2026verified |
| Property, plant & equipment, net | 20.5 m | 23.0 m | 24.0 m | esef· 25 Jun 2026verified |
| Goodwill | 231.7 m | 244.2 m | 249.2 m | esef· 25 Jun 2026verified |
| Intangibles (excl. goodwill) | 97.8 m | 92.2 m | 81.3 m | esef· 25 Jun 2026verified |
| Total assets | 668.7 m | 695.0 m | 694.6 m | esef· 25 Jun 2026verified |
| Long-term debt | 136.1 m | 138.6 m | 110.2 m | esef· 25 Jun 2026verified |
| Current liabilities | 185.4 m | 195.5 m | 206.2 m | esef· 25 Jun 2026verified |
| Total liabilities | 367.1 m | 387.0 m | 366.0 m | esef· 25 Jun 2026verified |
| Equity | 301.6 m | 308.0 m | 328.6 m | esef· 25 Jun 2026verified |
| Shares outstanding at year end | 95.7 m | 96.1 m | 96.0 m | esef· 25 Jun 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 41.2 m | 46.4 m | 45.3 m | esef· 25 Jun 2026verified |
| Capex | 4.8 m | 5.4 m | 5.7 m | esef· 25 Jun 2026verified |
| Free cash flow | 36.4 m ≈ | 41.0 m ≈ | 39.6 m ≈ | esef· 25 Jun 2026derived |
| Investing cash flow | -83.8 m | -19.3 m | -11.3 m | esef· 25 Jun 2026verified |
| Financing cash flow | 33.2 m | -13.9 m | -49.1 m | esef· 25 Jun 2026verified |
| Dividends paid | 11.2 m | 11.7 m | 12.2 m | esef· 25 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 49 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 744.2 m GBP
Key indicators
Coverage and freshness
Score by group
- Quality60
- Returns54
- Balance sheet43
- Valuation36
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Neutral profile · Score 49/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 11.7% | 46 (vs peers) | 17% |
| Net margin · Quality | 6.5% | 43 (vs peers) | 10% |
| FCF conversion · Quality | 136.6% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 3.8x | 36 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.5x | 54 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 26.4x | 11 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 5.3% | 67 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 1.6% | 23 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 30.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet43/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality60/100 · 3/3 factors with a value
- Returns54/100 · 2/2 factors with a value
- Valuation36/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DISCOVERIE GROUP PLC (DSCV.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 443.3 m GBP in 2026; YoY growth 4.8%; net margin 6.5%; ROE 9.1%.
The estimated value range is 5.61–7.64 GBP per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 6.45 GBP, the price of 7.75 GBP leaves a potential of -16.8% (value / price − 1) and a margin of safety of -20.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 49/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 136.6%
- Payout ratio (FCF): 30.8%
What contradicts it
- P/E (TTM): 26.4x
- Shareholder yield (distributions): 1.6%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| DSCV.LDiscoverie Group PLC | 744.2 m | 26.4 | 9.1% | 6.5% | +4.8% | +31% / +26% |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for DSCV.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.72 Total return -36% · Per year -36% | 8.34 Total return 12% · Per year 12% | 12.57 Total return 67% · Per year 67% |
| 3 years | 4.61 Total return -31% · Per year -12% | 9.17 Total return 31% · Per year 9% | 15.16 Total return 112% · Per year 28% |
| 5 years | 4.50 Total return -27% · Per year -6% | 10.08 Total return 52% · Per year 9% | 18.28 Total return 166% · Per year 22% |
- Exit P/E± 2.29
- Net margin± 1.60
- Annual revenue growth± 1.31
- Annual dilution± 0.13
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
discoverIE Group designs and manufactures customised, high value-add electronic components for structurally growing markets: renewables, transport, medical, industrial and connectivity, plus security. In fiscal 2025/26 it returned to organic growth, with 79% of Group revenue from these target markets 1.
SWOT
Strengths
- A capital-light model and strong cash conversion that fund investment and acquisitions.
- Engineering expertise and components embedded in customer systems create barriers to replacement.
- Diversification across target markets with different cycles smooths cyclicality.
Weaknesses
- Reliance on acquisitions for growth raises the risk of integrating acquired businesses.
- Operating margin is still below the medium-term target and needs further investment.
- Higher debt after recent acquisitions leaves less room for error.
Opportunities
- A fragmented market offers many consolidation opportunities through well-selected acquisitions.
- Growth in renewables, electric mobility and security could open new designs.
- LEO satellite constellations could expand demand for connectivity and power components.
Threats
- US tariffs and counter-tariffs could reduce orders or raise sourcing costs.
- Geopolitical tensions could disrupt supply chains and accelerate inflation.
- Cyber attacks and climate-related risks could affect operations and customers.
Risks
- Economic and geopolitical environmenthigh
Conflicts in the Middle East and Ukraine could affect demand and costs. The risk remains high if disruption widens.
- Trade tariffshigh
US tariffs and counter-tariffs could affect margins and orders, even though local production reduces exposure.
- Performance of acquired businessesmedium
Integrating acquired businesses could delay synergies and affect group results.
- Loss of major customers or suppliersmedium
Dependence on specific customers or suppliers could hurt revenue if relationships deteriorate.
- Cyber securitymedium
Cyber attacks could interrupt production and expose sensitive customer data.
Investment thesis
What would need to be true (bull case)
- If demand in structural markets continues, the Group could accelerate growth through won design wins and disciplined acquisitions.
- The capital-light model and strong cash conversion could support the dividend and investment without large additional borrowing.
- Design expertise and embedded components could sustain customer retention and stable pricing.
What would break the thesis
- If tariffs and geopolitical uncertainty widen, customer orders could slow again.
- Higher debt after recent acquisitions could limit financial flexibility if results weaken.
- Organic growth over the long term has been modest, which could be insufficient to reach margin targets without acquisitions.
What to watch
- Order intake and order book trends, including book-to-billQ1 2027
- Effects of US tariffs on margins and local production2027
- Integration of recent acquisitions and reduction of gearing2027
- Progress towards the 17% adjusted operating margin targetnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The Group designs and manufactures essential, customised, technically complex electronic products that let customers build better equipment. Its model relies on acquiring specialist component businesses, grouped into clusters for operational efficiency, and on a capital-light model. In fiscal 2025/26 sales rose 5% at CER to £443.3m, and free cash flow reached £36.6m, or 92% of adjusted earnings 1.
Its competitive advantage rests on deep engineering expertise, application knowledge and early design engagement. Components are embedded in customer systems, and replacing them would require redesign, re-testing and re-certification, which discourages switching suppliers 1.
The strategy has five elements: growth in structural markets, acquisition of differentiated businesses, margin improvement through clustering, disciplined capital allocation from strong cash generation, and reduced environmental impact with a net-zero target for Scope 1 and 2 by 2030 1.
Segments
Renewables and transport
This segment covers components for wind and solar, hydrogen, electric trains, hydrogen buses and electric ships. Demand grows with electrification and urbanisation, and the Group could benefit if grid and e-mobility investment continues 1.
Medical and security
The medical segment includes sensors, wireless modules and surgical equipment, with demand supported by ageing populations. Security covers defence vehicle switches, X-ray detectors and magnetic switches for critical infrastructure, markets the Group has added or expanded recently 1.
Industrial and connectivity
Industrial includes temperature sensors, Power-over-Ethernet modules and food-processing detectors. Connectivity covers satellite transformers, fibre connectors and EMC shielding for data centres. Industrial digitalisation and LEO constellations support demand for these products 1.
Market context
The Group operates in a fragmented market with many smaller players, which offers consolidation opportunities. The report links structural growth to megatrends such as electrification, digitalisation and security. European sales grew 3% organically, and Asian orders rose 24% 1.
North American demand grew 10% organically over the year and total orders rose 9%. Growth could depend on industrial customers recovering from destocking and on how trade tariffs develop 1.
Trends
- Electrification and renewablestailwind
Growth in renewable capacity and power grids increases demand for high-efficiency power electronics and sensors. If investment continues, this supports the Group's design wins 1.
- Industrial digitalisationtailwind
Automation and Industry 4.0 increase the need for sensors, converters and communication modules. If automation accelerates, demand for the Group's components could rise 1.
- US trade tariffsheadwind
Tariffs and counter-tariffs disrupted orders and added costs. Local US production limits the direct impact, but uncertainty could weigh on customer investment 1.
- Middle East and Ukraine conflictsmixed
Geopolitical tensions can cause cost inflation and supply chain disruption. The Group says it has no direct trading exposure in the Middle East but is monitoring indirect effects 1.
Competitive position
The Group competes with many specialist electronic component makers, generally smaller. Its advantage comes from co-developing embedded solutions that are hard to replace once designed into customer systems 1.
Competitors are not named in the analysed source. If the market stays fragmented, acquisitions could remain the main route to gaining share 1.
- Specialist European and Asian component makers
Fragmented competitors by product niche; not named in the report.
- Automation and sensor component suppliers
Compete in industrial and sensor segments; not named in the source.
- Transport and energy electronics suppliers
Compete in power electronics for trains, electric vehicles and renewables.
- Security and defence component suppliers
Compete in switches, detectors and components for defence vehicles.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202625 Jun 2026
- Annual report 202524 Jun 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / discoverIE Group plc · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.