# discoverIE Group plc (DSCV.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Electronic Equipment, Instruments & Components. Price 788p, market value 757 millionp.

## Valuation
- **P/E (trailing): 27.2×** (5-yr avg 3239.6×, 3-yr avg 2919.7×). discoverIE Group plc trades at 27.2× trailing earnings, well below its own five-year average of 3239.6×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.06**. A PEG of 1.06 is in the range usually read as fairly priced for its growth.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 11.8×**. Enterprise value is 11.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 11.2%** (5-yr avg 0.1%). Free cash flow equals 11.2% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.7%**. The inverse of the P/E: 3.7% of the price is earned each year.

## Profitability
- **Gross margin: 20.0%**. discoverIE Group plc keeps 20.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 2.4%**. 2.4% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 6.5%**. 6.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.8%**. 8.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 3.7%**. Return on all capital, debt included, is 3.7%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): 4.8%** (3-yr -0.4%/yr, 5-yr 7.9%/yr). Revenue grew 4.8% over the last year, against 7.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 16.0%** (3-yr 9.6%/yr, 5-yr 17.4%/yr). Earnings per share rose 16.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 9.6%/yr**. Free cash flow has compounded at 9.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.73**. Debt is 0.73 times equity, moderate leverage.
- **Net debt / EBITDA: 1.6×**. It would take 1.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 0.8×**. Operating profit covers interest only 0.8×: fragile.
- **Current ratio: 1.45** (quick 1.04). Current assets cover the next year's liabilities 1.45 times.
- **Altman Z-score: 2.91**. A Z-score of 2.91 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.64%** (0p per share, trailing). discoverIE Group plc yields 1.64%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 42%** (28% of free cash flow). 42% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 32.1%/yr** (1-yr 4.1%). The dividend has compounded at 32.1% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 1.6%**. Dividends plus net buybacks return 1.6% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (10 analysts). 10 analysts cover discoverIE Group plc; the consensus is strong_buy, with an average price target of 921p (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 32.9%** (YTD 33.1%, 3-mo 12.0%). The shares are up 32.9% over twelve months including dividends.
- **From 52-week high: -6.2%** (56.0% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 1.12** (volatility 33%). Beta of 1.12 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DSCV.L · Page: https://foliofundamentals.com/stocks/dscv.l

Not investment advice.