Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
discoverIE Group is an international designer and manufacturer of customized electronic components for industrial applications. Operating through approximately 30 businesses across the UK, Continental Europe, Asia, and North America, the company serves original equipment manufacturers globally across five key markets: Renewable Energy, Transport, Medical, Security, and Industrial & Connectivity. discoverIE's product portfolio includes transformers, inductors, chokes, magnetic sensors, power-over-Ethernet components, wireless antennas, trackballs, servo motors, and specialized sensors. The company organizes its operations into two primary segments: Magnetics & Controls, which focuses on industrial magnetic, power, computing, and control components; and Sensing & Connectivity, which provides industrial sensing and connectivity solutions. Founded in 1986 and headquartered in Guildford, United Kingdom, discoverIE is listed on the London Stock Exchange as a FTSE 250 constituent. The company's business model centers on designing and manufacturing custom electrical and electronic components tailored to meet the technical challenges of its customers worldwide.
£6.83
+£0.07 (+1.04%)
EOD Jul 3, 2026
10.20% operating margin is respectable but not wide. ROIC at 6.38%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 4.8%, steady but not accelerating.
Even for strong businesses, today's 23x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
23.2x earnings, 17.0x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£443M
▲ +4.8% YoY
Net Income (TTM)
£29M
▲ +17.9% YoY
Op. Margin
10.20%
▲ +0.2pp YoY
ROIC
6.38%
▲ +0.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£39M
▼ -4.0% YoY
Op. Cash Flow (TTM)
£44M
▼ -7.9% YoY
Net Debt
£115M
Cash & Equiv.
£125M
3Y CAGR: -0.4%
3Y CAGR: +8.0%
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At a P/E of 23.2 and a price-to-free-cash-flow of 17.0, discoverIE Group (DSCV.XLON) trades below a two-stage DCF intrinsic value of about £9.71 per share, so at £6.83 the stock looks undervalued (42.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, discoverIE Group scores 52/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £9.71 per share for DSCV.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £7.28. At today's £6.83, that puts the stock about 42.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
discoverIE Group scores 52 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 10.2% operating margin and a 6.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, discoverIE Group pays a regular dividend of about £0.13 per share per year (typically in quarterly installments), a yield of roughly 1.9% at the current price. That is a payout ratio of about 42.1% of earnings, so the dividend is well covered. discoverIE Group has grown the dividend at roughly 6.7% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For DSCV.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. DSCV.XLON currently trades below its estimated intrinsic value and scores 52/100 on quality (mixed). It also yields about 1.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.