discoverIE Group Plc (DSCV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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discoverIE Group Plc

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Why is discoverIE Group Plc ?

Poor Management Efficiency with a low ROCE of 9.04%

The company has been able to generate a Return on Capital Employed (avg) of 9.04% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.04%

Poor long term growth as Net Sales has grown by an annual rate of -0.49% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 6.32% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 13.15%

With a growth in Net Profit of 5.56%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at GBP 97.9 MM
ROCE(HY) Highest at 9.11%
DEBT-EQUITY RATIO (HY) Lowest at 34.84 %

With ROE of 8.06%, it has a fair valuation with a 2.12 Price to Book Value

Over the past year, while the stock has generated a return of 8.56%, its profits have fallen by -4.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to discoverIE Group Plc should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is discoverIE Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

discoverIE Group Plc

8.56%

0.02

31.23%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.49%

EBIT Growth (5y)

13.15%

EBIT to Interest (avg)

4.43

Debt to EBITDA (avg)

1.18

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

0.87

Tax Ratio

23.13%

Dividend Payout Ratio

43.09%

Pledged Shares

Institutional Holding

ROCE (avg)

9.04%

ROE (avg)

6.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.12

EV to EBIT

18.62

EV to EBITDA

11.01

EV to Capital Employed

1.89

EV to Sales

1.77

PEG Ratio

Dividend Yield

1.75%

ROCE (Latest)

10.13%

ROE (Latest)

8.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 97.9 MM

ROCE(HY)

Highest at 9.11%

DEBT-EQUITY RATIO (HY)

Lowest at 34.84 %

INTEREST COVERAGE RATIO(Q)

Highest at 633.93

RAW MATERIAL COST(Y)

Fallen by -771.81% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.59 times

NET SALES(Q)

Highest at GBP 226.9 MM

EPS(Q)

Highest at GBP 0.16

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 54.81%

PRE-TAX PROFIT(Q)

Fallen at -25%

Here's what is working for discoverIE Group Plc

Operating Cash Flow

Highest at GBP 97.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Highest at 633.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 34.84 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at GBP 226.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

EPS

Highest at GBP 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Highest at 5.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -771.81% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for discoverIE Group Plc

Pre-Tax Profit

Fallen at -25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Dividend Payout Ratio

Lowest at 54.81%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)