# Discoverie Group (DSCV.LSE)

Canonical: https://gigainvestors.com/s/DSCV.LSE

Analysis as of: 2026-10-16T07:43:50.881Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 815.00 per share; close as of 2026-10-15.

Estimated value: low GBX 563.51 per share, central GBX 624.50 per share, high GBX 705.70 per share. Buy at or below the central value GBX 624.50 per share. Valuation as of 2026-10-16T07:43:50.881Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.05×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.07×

- FY2025: 0.10×

- FY2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 13.9%

- ROIC, second-lowest year: 10.7%

- Typical minus recent gross margin: -10.0 pp

- Typical gross margin (annual median): 32.9%

- Recent gross margin (lower of latest and 3-year median): 42.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 9.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 14.1%

- FY2018: 13.6%

- FY2019: 16.3%

- FY2020: 12.3%

- FY2021: 8.6%

- FY2022: 10.7%

- FY2023: 15.0%

- FY2024: 11.2%

- FY2025: 17.6%

- FY2026: 17.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.77×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 194M

- Net income, five-year total: GBP 109M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 2.3 pp

- Working capital / revenue, final three-year average: 26.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.75×

- FY2023: 1.82×

- FY2024: 2.22×

- FY2025: 1.68×

- FY2026: 1.57×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 14.1% vs 17.2%

- Per-share earnings: 0.11 to 0.25 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.6%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: GBP 349M

- Cumulative retained earnings: GBP 131M

- Diluted shares, 10-year annual growth: 3.6%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.2%

- Per-share value change: GBP 0.14

- Per-share value, starting three-year median: GBP 0.11

- Per-share value, ending three-year median: GBP 0.25

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 3.2%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 379M

- Cumulative net income, 10 years: GBP 166M

- ROIC, first three-year median: 14.1%

- ROIC, last three-year median: 17.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.05

- FY2018: GBP 0.16

- FY2019: GBP 0.18

- FY2020: GBP 0.16

- FY2021: GBP 0.13

- FY2022: GBP 0.19

- FY2023: GBP 0.22

- FY2024: GBP 0.16

- FY2025: GBP 0.25

- FY2026: GBP 0.30

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.66×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.1%

- FY2018: -1.1%

- FY2019: -2.4%

- FY2020: -5.3%

- FY2021: -8.1%

- FY2022: -2.0%

- FY2023: -2.6%

- FY2024: -3.8%

- FY2025: -3.1%

- FY2026: -2.7%

## Holders

## Price story

Down 22% since Oct 2021 · sales +4.8%

Story as of 2026-10-16T10:00:12.841Z; price observation 2026-10-15.

Price needs cash profits to grow 4.9% a year for ten years

### Sales · FY2025–2026

sales +4.8%; source https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html; observed 2026-06-25.

- FY2017: GBP 338M 

- FY2018: GBP 388M 

- FY2019: GBP 439M 

- FY2020: GBP 466M 

- FY2021: GBP 303M 

- FY2022: GBP 379M 

- FY2023: GBP 449M 

- FY2024: GBP 437M 

- FY2025: GBP 423M 

- FY2026: GBP 443M 

### Gross margin · FY2026

gross margin 43.4%; source https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html; observed 2026-06-25.

- FY2017: 32.8% 

- FY2018: 32.7% 

- FY2019: 33.0% 

- FY2020: 31.7% 

- FY2021: 34.3% 

- FY2022: 7.2% 

- FY2023: 8.1% 

- FY2024: 40.5% 

- FY2025: 42.9% 

- FY2026: 43.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are GBP 443.3 million.

- Source: https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html (filed 2026-06-25); FY2026: revenue 443300000; grossProfit 192500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DSCV.LSE: discoverIE Group plc designs, manufactures, and supplies specialist electronic components for industrial applications in the United Kingdom, Europe, North America, Asia, and internationally. It operates through Magnetics & Controls; and Sensing & Connectivity segments. The company offers magnetic and power components, embedded computing and interface controls, and sensing and connectivity components for industrial applications. The Magnetics & Controls segment offers Electronics for power conversion and switching, X-ray detection, signal conditioning, monitoring, human-machine interface controls and embedded computing. The Sensing & Connectivity segment offers electronics for wireless transmission, fibre optic and cable connection, electromagnetic shielding, and sensing components for measuring movement, temperature, pressure, position, force, and load. It serves renewable energy, transportation, security, medical, industrial and connectivity, and other markets. The company was formerly known as Acal plc and changed its name to discoverIE Group plc in November 2017. discoverIE Group plc was incorporated in 1986 and is based in Guildford, the United Kingdom.

### Why customers stay

Margins ranged from 40.5% to 43.4% during 2024–26; it earns 13.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: grossProfit / revenue = 40.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: grossProfit / revenue = 42.9%.

- Source: https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html (filed 2026-06-25); FY2026: grossProfit / revenue = 43.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); 10-year return on capital observations [[2017,0.14098419540229887],[2018,0.13639653647159747],[2019,0.1631089921889008],[2020,0.1225937183383992],[2021,0.0863121834971701],[2022,0.10728915662650602],[2023,0.15011357679538703],[2024,0.11228754527723599],[2025,0.17571428571428574],[2026,0.17151943129722463]]; median 0.13869036593694817. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2017: growth capex 0; upkeep 2800000; owner earnings 8300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2018: growth capex 0; upkeep 3700000; owner earnings 17100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2019: growth capex 0; upkeep 4200000; owner earnings 21500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2020: growth capex 0; upkeep 6300000; owner earnings 25000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2021: growth capex 0; upkeep 3900000; owner earnings 24000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2022: growth capex 0; upkeep 6200000; owner earnings 33280000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2023: growth capex 0; upkeep 5600000; owner earnings 38840000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: growth capex 0; upkeep 4800000; owner earnings 34480000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: growth capex 0; upkeep 6100000; owner earnings 41420000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html (filed 2026-06-25); FY2026: growth capex 0; upkeep 5700000; owner earnings 45600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Dividend observations: [[2017,5200000],[2018,6200000],[2019,6700000],[2020,8100000],[2021,2800000],[2022,9400000],[2023,10500000],[2024,11200000],[2025,11700000],[2026,12200000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 3.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DSCV.LSE SharesStats.PercentInsiders = 3.4770000000000003 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html (filed 2026-06-25); cted in how we manage

our design pipeline. We are selective, focusing on design

opportunities that demand unique, value-added solutions

and that offer long-term profitable revenue potential.

These quality design wins translate into consistent,

high-margin growth over time.

Progress to date

The industrial sector experienced a prolonged and

steep destocking period between 2023 and 2025 as

the pandemic-induced inventory surpluses unwound.

Although destocking in most of the end markets ended in

the second half of 2025, demand recovery has been slow

due to the uncertainty around the US tariffs introduced in

April 2025. In FY 2025/26, Group sales increased by 5% CER

and 2% organically. Despite the temporary headwinds,

our through-cycle organic growth in the past ten years,

averaging 4% per annum, remains well ahead of the GDP

growth rate in our core markets of developed economies.



### What the price says

The price assumes cash profits grow 4.9% yearly over ten years; actual growth was 11.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Ten-year compound average after fade. Initial solved rate 0.05745079543109531. Price 815; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.15746417318682232 → FY2026 0.47429843356701545. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 231.00 per share

- 2016-11: GBX 213.00 per share

- 2016-12: GBX 226.00 per share

- 2017-01: GBX 234.00 per share

- 2017-02: GBX 216.00 per share

- 2017-03: GBX 224.75 per share

- 2017-04: GBX 256.88 per share

- 2017-05: GBX 277.50 per share

- 2017-06: GBX 302.75 per share

- 2017-07: GBX 314.25 per share

- 2017-08: GBX 299.00 per share

- 2017-09: GBX 309.75 per share

- 2017-10: GBX 317.00 per share

- 2017-11: GBX 331.00 per share

- 2017-12: GBX 370.25 per share

- 2018-01: GBX 380.00 per share

- 2018-02: GBX 385.00 per share

- 2018-03: GBX 415.00 per share

- 2018-04: GBX 423.00 per share

- 2018-05: GBX 437.00 per share

- 2018-06: GBX 437.00 per share

- 2018-07: GBX 411.00 per share

- 2018-08: GBX 412.00 per share

- 2018-09: GBX 379.50 per share

- 2018-10: GBX 355.00 per share

- 2018-11: GBX 340.00 per share

- 2018-12: GBX 363.00 per share

- 2019-01: GBX 419.00 per share

- 2019-02: GBX 409.00 per share

- 2019-03: GBX 394.00 per share

- 2019-04: GBX 425.00 per share

- 2019-05: GBX 421.00 per share

- 2019-06: GBX 420.00 per share

- 2019-07: GBX 442.00 per share

- 2019-08: GBX 428.00 per share

- 2019-09: GBX 430.00 per share

- 2019-10: GBX 454.00 per share

- 2019-11: GBX 550.00 per share

- 2019-12: GBX 570.00 per share

- 2020-01: GBX 570.00 per share

- 2020-02: GBX 514.00 per share

- 2020-03: GBX 491.00 per share

- 2020-04: GBX 498.00 per share

- 2020-05: GBX 550.00 per share

- 2020-06: GBX 512.00 per share

- 2020-07: GBX 594.00 per share

- 2020-08: GBX 610.00 per share

- 2020-09: GBX 610.00 per share

- 2020-10: GBX 574.00 per share

- 2020-11: GBX 632.00 per share

- 2020-12: GBX 674.00 per share

- 2021-01: GBX 678.00 per share

- 2021-02: GBX 670.00 per share

- 2021-03: GBX 670.00 per share

- 2021-04: GBX 778.00 per share

- 2021-05: GBX 750.00 per share

- 2021-06: GBX 947.00 per share

- 2021-07: GBX 1,040.00 per share

- 2021-08: GBX 1,006.00 per share

- 2021-09: GBX 1,042.00 per share

- 2021-10: GBX 1,046.00 per share

- 2021-11: GBX 1,004.00 per share

- 2021-12: GBX 1,026.00 per share

- 2022-01: GBX 851.00 per share

- 2022-02: GBX 803.00 per share

- 2022-03: GBX 788.00 per share

- 2022-04: GBX 764.00 per share

- 2022-05: GBX 745.00 per share

- 2022-06: GBX 620.00 per share

- 2022-07: GBX 757.00 per share

- 2022-08: GBX 790.00 per share

- 2022-09: GBX 648.00 per share

- 2022-10: GBX 745.00 per share

- 2022-11: GBX 830.00 per share

- 2022-12: GBX 731.00 per share

- 2023-01: GBX 860.00 per share

- 2023-02: GBX 855.00 per share

- 2023-03: GBX 771.00 per share

- 2023-04: GBX 845.00 per share

- 2023-05: GBX 790.00 per share

- 2023-06: GBX 840.00 per share

- 2023-07: GBX 801.00 per share

- 2023-08: GBX 730.00 per share

- 2023-09: GBX 678.00 per share

- 2023-10: GBX 617.00 per share

- 2023-11: GBX 617.00 per share

- 2023-12: GBX 790.00 per share

- 2024-01: GBX 784.00 per share

- 2024-02: GBX 671.00 per share

- 2024-03: GBX 757.00 per share

- 2024-04: GBX 705.00 per share

- 2024-05: GBX 728.00 per share

- 2024-06: GBX 671.00 per share

- 2024-07: GBX 677.00 per share

- 2024-08: GBX 662.00 per share

- 2024-09: GBX 608.00 per share

- 2024-10: GBX 665.00 per share

- 2024-11: GBX 624.00 per share

- 2024-12: GBX 715.00 per share

- 2025-01: GBX 644.00 per share

- 2025-02: GBX 546.00 per share

- 2025-03: GBX 544.00 per share

- 2025-04: GBX 567.00 per share

- 2025-05: GBX 635.00 per share

- 2025-06: GBX 652.00 per share

- 2025-07: GBX 691.00 per share

- 2025-08: GBX 606.00 per share

- 2025-09: GBX 594.00 per share

- 2025-10: GBX 581.00 per share

- 2025-11: GBX 592.00 per share

- 2025-12: GBX 600.00 per share

- 2026-01: GBX 634.00 per share

- 2026-02: GBX 656.00 per share

- 2026-03: GBX 538.00 per share

- 2026-04: GBX 646.00 per share

- 2026-05: GBX 764.00 per share

- 2026-06: GBX 676.00 per share

- 2026-07: GBX 775.00 per share

- 2026-08: GBX 813.00 per share

- 2026-09: GBX 836.00 per share

- 2026-10: GBX 815.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 139.90 per share, central GBX 156.57 per share, high GBX 178.77 per share

- FY2018: low GBX 158.82 per share, central GBX 178.10 per share, high GBX 203.76 per share

- FY2019: low GBX 236.24 per share, central GBX 272.48 per share, high GBX 314.05 per share

- FY2020: low GBX 274.14 per share, central GBX 308.45 per share, high GBX 353.44 per share

- FY2021: low GBX 198.56 per share, central GBX 222.52 per share, high GBX 254.41 per share

- FY2022: low GBX 329.61 per share, central GBX 360.83 per share, high GBX 402.40 per share

- FY2023: low GBX 470.84 per share, central GBX 525.27 per share, high GBX 597.73 per share

- FY2024: low GBX 488.72 per share, central GBX 541.80 per share, high GBX 612.45 per share

- FY2025: low GBX 538.77 per share, central GBX 594.75 per share, high GBX 669.26 per share

- FY2026: low GBX 563.42 per share, central GBX 624.40 per share, high GBX 705.59 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:49:26.602Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800BMDLQU1VEEAN68/2026-03-31/ESEF/GB/0/213800BMDLQU1VEEAN68-2026-03-31-1/reports/213800BMDLQU1VEEAN68-2026-03-31-1-T01.html); period 2026-03-31, filed 2026-06-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.