Discovery Limited (DSY.JO) stock analysis

In our weekly check, Discovery Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 6.

About Discovery Limited

Discovery Limited is a Financial Services company (Insurance - Life) based in South Africa, listed on JNB as DSY.JO.

What our checks show for DSY.JO

Red flags

• Analysts expect revenue to shrink about 8% a year.
• The dividend takes 277% of profit: little cushion if profit falls.
• A small company (market value $109 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 69% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.5 years.

Warning signs

• Operating cash flow is only 0.58x net profit: part of the reported profit does not arrive as cash.
• Revenue grew only 2.7% a year over the last 3 years.
• Free cash flow is only 3.3% of revenue.
• Return on capital (ROCE) is only 7.7%.

Strengths

• The net margin rose by 6.1 points over 5 years, to 14.4%.
• Analysts expect the net margin to improve by 10.9 points from today's 14.4%.
• Earnings per share grew 34.3% a year over the last 3 years.
• Net profit grew 26.2% a year over the last 3 years.
• The price is 13.9 times earnings (P/E), reasonable for its growth.
• Beta 0.59: the stock usually moves less than the market.

Similar companies

SLM.JO · 1336.HK · GWO.TO · MFC · MET · AFL

Questions

What grade does Discovery Limited (DSY.JO) have?

In our weekly check, Discovery Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of DSY.JO stock?

This week's biggest flags for Discovery Limited: Weak revenue forecast, Dividend stretched, Small company. In total 10 of 25 checks show a warning or a red flag.

What does Discovery Limited do?

Discovery Limited is a Financial Services company (Insurance - Life) based in South Africa, listed on JNB as DSY.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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