Drax Group (DRX) Share Price, News & Analysis

Company Overview

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. It operates through three segments: Pellet Production, Generation, and Customers. The Pellet Production segment produces and sells biomass pellets. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland. It also owns and operates Daldowie fuel plant that processes sludge, a plant that converts it into dry low-odour fuel pellets. In addition, the company manufactures and sells compressed wood pellets; and supplies renewable electricity. Drax Group plc was incorporated in 2005 and is based in Selby, the United Kingdom.

Key Stats

• Today's Range: 616.50 to 630.50
• 50-Day Range: 613 to 665
• 52-Week Range: 403.21 to 679.50
• Volume: 557,604 shs
• Average Volume: 1.51 million shs
• Market Capitalization: £2.38 billion
• P/E Ratio: 376.51
• Dividend Yield: 3.84%
• Price Target: GBX 761
• Consensus Rating: Moderate Buy

Drax Group Stock Analysis - MarketRank™

Drax Group scored higher than 39% of companies evaluated by MarketBeat. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Drax Group has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 3 buy ratings, no hold ratings, and 1 sell rating.

Amount of Analyst Coverage

Drax Group has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: N/A

Price to Earnings Ratio vs. the Market

The P/E ratio of Drax Group is 376.51, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 131.68.

Price to Earnings Ratio vs. Sector

The P/E ratio of Drax Group is 376.51, which means that it is trading at a more expensive P/E ratio than the Utilities sector average P/E ratio of about 97.13.

Price to Earnings Growth Ratio

Drax Group has a PEG Ratio of 0.10. PEG Ratios below 1 indicate that a company could be undervalued.

Price to Book Value per Share Ratio

Drax Group has a P/B Ratio of 1.12. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: N/A
• Short Interest Level: N/A

Short Interest

There is no current short interest data available for DRX.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Drax Group is a leading dividend payer. It pays a dividend yield of 3.82%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Drax Group does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Drax Group is 1,445.78%. Payout ratios above 75% are not desirable because they may not be sustainable.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Short Interest

There is no current short interest data available for DRX.

News and Social Media

• Score: 1.9 / 5
• News Sentiment: -0.61

News Sentiment

Drax Group has a news sentiment score of -0.61. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.48 average news sentiment score of Utilities companies.

News Coverage This Week

MarketBeat has tracked 2 news articles for Drax Group this week, compared to 1 article on an average week.

Search Interest

2 people have searched for DRX on MarketBeat in the last 30 days. This is an increase of 100% compared to the previous 30 days.

MarketBeat Follows

2 people have added Drax Group to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Drax Group insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.67% of the stock of Drax Group is held by insiders.

Percentage Held by Institutions

70.87% of the stock of Drax Group is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

DRX Stock Analysis - Frequently Asked Questions

How have DRX shares performed this year?

Drax Group's stock was trading at GBX 489.70 on January 1st, 2024. Since then, DRX stock has increased by 27.6% and is now trading at GBX 625.
View the best growth stocks for 2024 here.

How were Drax Group's earnings last quarter?

Drax Group plc (LON:DRX) issued its quarterly earnings data on Tuesday, February, 27th. The company reported $0.70 EPS for the quarter, missing the consensus estimate of $1.50 by $0.80. The business had revenue of $3.69 billion for the quarter. Drax Group had a net margin of 8.84% and a trailing twelve-month return on equity of 34.30%.

How do I buy shares of Drax Group?

Shares of DRX stock and other U.K. stocks can be purchased through online brokerage accounts that support trading on the London Stock Exchange (LSX). Some U.K. companies can be purchased through major U.S. brokerages in the form of American Depository Receipts (ADRs), which are placeholder equities held in a trust by a bank that represent shares of a foreign stock.
Compare Top Brokerages Here.

What other stocks do shareholders of Drax Group own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Drax Group investors own include 32Red (TTR), Lloyds Banking Group (LLOY), SSE (SSE), Unilever (ULVR), BAE Systems (BA), Babcock International Group (BAB) and Centrica (CNA).

Company Calendar

• Last Earnings: 2/27/2018
• Ex-Dividend for 10/25 Dividend: 9/19/2024
• Dividend Payable: 10/25/2024
• Today: 11/04/2024

Industry, Sector and Symbol

• Stock Exchange: LON
• Sector: Utilities
• Industry: Utilities - Renewable
• Sub-Industry: N/A
• Current Symbol: LON:DRX
• CUSIP: N/A
• CIK: N/A
• Web: www.drax.com
• Phone: +44-1757-618381
• Fax: N/A
• Employees: 3,551
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: GBX 761
• High Stock Price Target: GBX 1,100
• Low Stock Price Target: GBX 434
• Potential Upside/Downside: +21.8%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): GBX 1.66
• Trailing P/E Ratio: 376.51
• Forward P/E Ratio: 6.41
• P/E Growth: 0.1
• Net Income: £653.80 million
• Net Margins: 8.84%
• Pretax Margin: N/A
• Return on Equity: 34.30%
• Return on Assets: 11.44%

Debt

• Debt-to-Equity Ratio: 63.77
• Current Ratio: 1.26
• Quick Ratio: 0.32

Sales & Book Value

• Annual Sales: £7.39 billion
• Price / Sales: 0.32
• Cash Flow: GBX 73.09 per share
• Price / Cash Flow: 8.55
• Book Value: GBX 560 per share
• Price / Book: 1.12

Miscellaneous

• Outstanding Shares: 380,580,000
• Free Float: N/A
• Market Cap: £2.38 billion
• Optionable: Not Optionable
• Beta: 1.22