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DRX

Drax Group LSE:DRX Stock Report

Last Price

UK£6.01

Market Cap

UK£2.4b

7D

-12.8%

1Y

21.1%

Updated

30 Sep, 2022

Data

Company Financials +
DRX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends3/6

DRX Stock Overview

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom.

Drax Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Drax Group
Historical stock prices
Current Share PriceUK£6.01
52 Week HighUK£8.46
52 Week LowUK£4.68
Beta1.17
1 Month Change-5.58%
3 Month Change-8.95%
1 Year Change21.12%
3 Year Change110.11%
5 Year Change98.78%
Change since IPO6.09%

Recent News & Updates

Sep 19
At UK£6.91, Is It Time To Put Drax Group plc (LON:DRX) On Your Watch List?

At UK£6.91, Is It Time To Put Drax Group plc (LON:DRX) On Your Watch List?

While Drax Group plc ( LON:DRX ) might not be the most widely known stock at the moment, it saw a decent share price...

Aug 24
Drax Group (LON:DRX) Takes On Some Risk With Its Use Of Debt

Drax Group (LON:DRX) Takes On Some Risk With Its Use Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 28
Analysts' Revenue Estimates For Drax Group plc (LON:DRX) Are Surging Higher

Analysts' Revenue Estimates For Drax Group plc (LON:DRX) Are Surging Higher

Drax Group plc ( LON:DRX ) shareholders will have a reason to smile today, with the analysts making substantial...

Shareholder Returns

DRXGB Renewable EnergyGB Market
7D-12.8%-8.2%-1.7%
1Y21.1%22.6%-15.1%

Return vs Industry: DRX underperformed the UK Renewable Energy industry which returned 25.1% over the past year.

Return vs Market: DRX exceeded the UK Market which returned -16.2% over the past year.

Price Volatility

Is DRX's price volatile compared to industry and market?
DRX volatility
DRX Average Weekly Movement6.4%
Renewable Energy Industry Average Movement4.8%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.8%

Stable Share Price: DRX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DRX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20052,931Will Gardinerhttps://www.drax.com

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. The company operates through three segments: Generation, Customers, and Pellet Production. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid.

Drax Group Fundamentals Summary

How do Drax Group's earnings and revenue compare to its market cap?
DRX fundamental statistics
Market CapUK£2.41b
Earnings (TTM)UK£210.60m
Revenue (TTM)UK£6.47b

11.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRX income statement (TTM)
RevenueUK£6.47b
Cost of RevenueUK£5.46b
Gross ProfitUK£1.01b
Other ExpensesUK£797.70m
EarningsUK£210.60m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.53
Gross Margin15.58%
Net Profit Margin3.25%
Debt/Equity Ratio107.1%

How did DRX perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

37%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DRX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRX?

Other financial metrics that can be useful for relative valuation.

DRX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA6.3x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does DRX's PE Ratio compare to its peers?

DRX PE Ratio vs Peers
The above table shows the PE ratio for DRX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average46.5x
GLO ContourGlobal
10.1x-21.3%UK£1.7b
YU. Yü Group
4.2x8.2%UK£33.7m
PNN Pennon Group
133.2x35.8%UK£2.1b
TEP Telecom Plus
38.5x23.8%UK£1.4b
DRX Drax Group
11.4x17.8%UK£2.4b

Price-To-Earnings vs Peers: DRX is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (46.5x).


Price to Earnings Ratio vs Industry

How does DRX's PE Ratio compare vs other companies in the European Renewable Energy Industry?

Price-To-Earnings vs Industry: DRX is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Renewable Energy industry average (22.9x)


Price to Earnings Ratio vs Fair Ratio

What is DRX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio26.3x

Price-To-Earnings vs Fair Ratio: DRX is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.3x).


Share Price vs Fair Value

What is the Fair Price of DRX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRX (£6.01) is trading below our estimate of fair value (£30.42)

Significantly Below Fair Value: DRX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Drax Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRX's forecast earnings growth (17.8% per year) is above the savings rate (0.9%).

Earnings vs Market: DRX's earnings (17.8% per year) are forecast to grow faster than the UK market (8.9% per year).

High Growth Earnings: DRX's earnings are forecast to grow, but not significantly.

Revenue vs Market: DRX's revenue (1.6% per year) is forecast to grow slower than the UK market (4.4% per year).

High Growth Revenue: DRX's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRX's Return on Equity is forecast to be high in 3 years time (23%)


Discover growth companies

Past Performance

How has Drax Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DRX has high quality earnings.

Growing Profit Margin: DRX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DRX has become profitable over the past 5 years, growing earnings by 30% per year.

Accelerating Growth: DRX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DRX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (40.8%).


Return on Equity

High ROE: DRX's Return on Equity (16.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Drax Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DRX's short term assets (£3.1B) exceed its short term liabilities (£3.1B).

Long Term Liabilities: DRX's short term assets (£3.1B) exceed its long term liabilities (£2.3B).


Debt to Equity History and Analysis

Debt Level: DRX's net debt to equity ratio (84.9%) is considered high.

Reducing Debt: DRX's debt to equity ratio has increased from 30.4% to 107.1% over the past 5 years.

Debt Coverage: DRX's debt is well covered by operating cash flow (24.2%).

Interest Coverage: DRX's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


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Dividend

What is Drax Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.28%

Current Dividend Yield

Dividend Yield vs Market

Drax Group Dividend Yield vs Market
How does Drax Group dividend yield compare to the market?
SegmentDividend Yield
Company (Drax Group)3.3%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Renewable Energy)4.3%
Analyst forecast in 3 Years (Drax Group)4.0%

Notable Dividend: DRX's dividend (3.28%) is higher than the bottom 25% of dividend payers in the UK market (2.15%).

High Dividend: DRX's dividend (3.28%) is low compared to the top 25% of dividend payers in the UK market (6.29%).


Stability and Growth of Payments

Stable Dividend: DRX's dividend payments have been volatile in the past 10 years.

Growing Dividend: DRX's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.4%), DRX's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (74.3%), DRX's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Will Gardiner (57 yo)

6.83yrs

Tenure

UK£2,734,000

Compensation

Mr. Dwight Daniel Willard Gardiner, known as Will, serves as a Director at Drax Power Limited. He has been Group Chief Executive Officer of Drax Group plc since January 1, 2018. Mr. Gardiner has been Execu...


CEO Compensation Analysis

Will Gardiner's Compensation vs Drax Group Earnings
How has Will Gardiner's remuneration changed compared to Drax Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£211m

Mar 31 2022n/an/a

UK£133m

Dec 31 2021UK£3mUK£570k

UK£56m

Sep 30 2021n/an/a

-UK£35m

Jun 30 2021n/an/a

-UK£125m

Mar 31 2021n/an/a

-UK£160m

Dec 31 2020UK£2mUK£557k

-UK£195m

Jun 30 2020n/an/a

-UK£89m

Mar 31 2020n/an/a

-UK£49m

Dec 31 2019UK£1mUK£541k

-UK£10m

Sep 30 2019n/an/a

UK£14m

Jun 30 2019n/an/a

UK£28m

Mar 31 2019n/an/a

UK£24m

Dec 31 2018UK£2mUK£530k

UK£20m

Sep 30 2018n/an/a

-UK£33m

Jun 30 2018n/an/a

-UK£86m

Mar 31 2018n/an/a

-UK£127m

Dec 31 2017UK£790kUK£397k

-UK£168m

Sep 30 2017n/an/a

-UK£104m

Jun 30 2017n/an/a

-UK£40m

Mar 31 2017n/an/a

UK£77m

Dec 31 2016UK£971kUK£390k

UK£194m

Sep 30 2016n/an/a

UK£180m

Jun 30 2016n/an/a

UK£166m

Mar 31 2016n/an/a

UK£111m

Dec 31 2015UK£96kUK£49k

UK£56m

Compensation vs Market: Will's total compensation ($USD3.05M) is about average for companies of similar size in the UK market ($USD2.67M).

Compensation vs Earnings: Will's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DRX's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: DRX's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

LSE:DRX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 May 22SellUK£242,550Dwight Daniel GardinerIndividual30,000UK£8.09
22 Dec 21SellUK£99,169Dwight Daniel GardinerIndividual16,667UK£5.95

Ownership Breakdown

What is the ownership structure of DRX?
Owner TypeNumber of SharesOwnership Percentage
Public Companies128,4340.03%
Private Companies149,6090.04%
Employee Share Scheme410,8100.1%
State or Government920,0000.2%
Individual Insiders1,016,0390.3%
General Public23,170,0365.8%
Institutions374,767,53293.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 67.88% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.15%
BlackRock, Inc.
32,647,493£196.0m21.19%0.01%
6.9%
Invesco Ltd.
27,620,010£165.9m-6.36%0.06%
6.31%
Schroder Investment Management Limited
25,293,417£151.9m-2.99%0.14%
5.05%
Orbis Investment Management Limited
20,227,537£121.5m0.3%0.61%
4.78%
Jupiter Fund Management Plc
19,146,815£115.0m-16.4%0.44%
4.59%
The Vanguard Group, Inc.
18,392,185£110.4m0.46%no data
3.62%
Dimensional Fund Advisors LP
14,500,993£87.1m1.11%0.02%
2.72%
Ignis Investment Services Limited
10,880,169£65.3m-3.35%0.29%
2.61%
Deutsche Asset & Wealth Management
10,468,275£62.9m50.87%0.03%
2.32%
abrdn plc
9,298,571£55.8m-13.33%0.07%
2.12%
Premier Fund Managers Limited
8,500,015£51.0m0%0.69%
2.02%
Societe Generale Group, Banking Investments
8,105,071£48.7m36.04%0.57%
1.86%
Norges Bank Investment Management
7,444,863£44.7m-2.54%0.01%
1.65%
Legal & General Investment Management Limited
6,589,945£39.6m-2%0.01%
1.57%
J.P. Morgan Asset Management, Inc.
6,305,889£37.9m10.21%0.01%
1.57%
UBS Asset Management
6,305,679£37.9m33.41%0.01%
1.52%
HSBC Global Asset Management (UK) Limited
6,080,516£36.5m13.23%0.03%
1.3%
M&G Investment Management Limited
5,187,589£31.2m-45.57%0.08%
1.2%
J O Hambro Capital Management Limited
4,803,848£28.8m-28.86%0.19%
1.19%
Skandinaviska Enskilda Banken AB, Private Banking, Investment Banking, and Insurance Arm
4,763,400£28.6m-37.78%0.65%
1.06%
Jennison Associates LLC
4,235,005£25.4m0%0.03%
1%
State Street Global Advisors, Inc.
4,011,428£24.1m-2.16%no data
1%
Amundi Asset Management
4,007,696£24.1m20.84%0.01%
0.92%
Swedbank Robur Fonder AB
3,676,992£22.1m0%0.04%
0.85%
Barclays Bank PLC, Securities Investments
3,414,103£20.5m4630.05%0.07%

Company Information

Drax Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Drax Group plc
  • Ticker: DRX
  • Exchange: LSE
  • Founded: 2005
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Implied Market Cap: UK£2.405b
  • Shares outstanding: 400.56m
  • Website: https://www.drax.com

Number of Employees


Location

  • Drax Group plc
  • Drax Power Station
  • Selby
  • North Yorkshire
  • YO8 8PH
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRXLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2005
D9F2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005
DRXG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2005
DRXLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2005
DRXG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2011

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.