# Drax Group plc (DRX.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Independent Power and Renewable Electricity Producers. Price 802p, market value 2.7 billionp.

## Valuation
- **P/E (trailing): 89.1×** (5-yr avg 1772.4×, 3-yr avg 291.0×). Drax Group plc trades at 89.1× trailing earnings, well below its own five-year average of 1772.4×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 14.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.01**. A PEG of 0.01 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.6×**. The shares trade at 1.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 1.8×**. Enterprise value is 1.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 37.3%** (5-yr avg 3.6%). Free cash flow equals 37.3% of the market value, above its five-year average of 3.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 1.1%**. The inverse of the P/E: 1.1% of the price is earned each year.

## Profitability
- **Gross margin: 25.0%**. Drax Group plc keeps 25.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 11.8%**. 11.8% of revenue is left after running the business.
- **Net margin: 1.4%**. 1.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.3%**. 4.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 34.3%**. Return on all capital, debt included, is 34.3%: comfortably above what that capital costs.
- **Return on assets: 13.3%**. Each dollar of assets produces 13.3% of profit.

## Growth
- **Revenue growth (1 yr): -13.1%** (3-yr -11.7%/yr, 5-yr 4.8%/yr). Revenue fell 13.1% over the last year, against 4.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 1396.3%** (3-yr 358.2%/yr). Earnings per share rose 1396.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 152.0%/yr**. Free cash flow has compounded at 152.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.63**. Debt is 0.63 times equity, moderate leverage.
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.6×**. Operating profit covers interest 7.6× over, a safe margin.
- **Current ratio: 1.07** (quick 0.91). Current assets cover the next year's liabilities 1.07 times.
- **Altman Z-score: 2.72**. A Z-score of 2.72 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.80%** (0p per share, trailing). Drax Group plc yields 3.80%, an income-level yield.
- **Payout ratio: 131%** (19% of free cash flow). The dividend exceeds earnings (131% payout), though free cash flow still covers it.
- **Consecutive years of increases: 9**. 9 straight years of increases.
- **Dividend growth (5 yr): 10.8%/yr** (1-yr 11.9%). The dividend has compounded at 10.8% a year over five years, doubling roughly every 7 years at that pace.
- **Shareholder yield: 16.0%**. Dividends plus net buybacks return 16.0% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (9 analysts). 9 analysts cover Drax Group plc; the consensus is buy, with an average price target of 923p (+15% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 22.9%** (YTD -4.2%, 3-mo 2.7%). The shares are up 22.9% over twelve months including dividends.
- **From 52-week high: -14.5%** (25.0% above the low). Trading 14% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 66**. An RSI of 66 is neutral.
- **Beta (1 yr): 0.77** (volatility 23%). Beta of 0.77 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DRX.L · Page: https://foliofundamentals.com/stocks/drx.l

Not investment advice.