Update shared on12 Oct 2025
Fair value Decreased 2.20%Analysts have revised their price target for Drax Group downward, lowering the estimated fair value from £8.58 to £8.39 per share. This change reflects updated outlooks on the company's profitability and growth prospects.
What's in the News
- Drax Group plans to propose a dividend for the 2025 financial year of 29.0 pence per ordinary share, which is an 11.5% increase compared to the previous period. The interim dividend of 11.6 pence per share will be paid on 24 October 2025 to shareholders on record as of 26 September 2025 (Key Developments).
- The company completed the repurchase of 42,685,935 shares, representing 11.34% of the share base for £272 million under the buyback program announced on 26 July 2024. Between January and July 2025, 24,928,160 shares were repurchased (Key Developments).
- On 30 July 2025, Drax Group announced an increase in its equity buyback program authority by £450 million, bringing the total authorization to £750 million and extending the plan through the end of 2028 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: The estimated fair value per share decreased from £8.58 to £8.39, reflecting a modest downward revision.
- Discount Rate: Marginally reduced from 8.44% to 8.43%.
- Revenue Growth: Remains virtually unchanged at around negative 5.75%.
- Net Profit Margin: No significant change, holding steady at approximately 4.34%.
- Future P/E Ratio: Slightly declined from 18.57 times to 18.15 times.
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