Drax Group plc (DRXGF)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Drax Group plc (DRXGF) trades at $10.00 with AI Score 45/100 (Grade C). Drax Group plc is a renewable power generation company based in the United Kingdom. Market cap: $3.37B, Sector: Utilities.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for DRXGF: DRXGF does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates DRXGF against Utilities peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
DRXGF: the 1 perspectives are evenly split.
How is this calculated? →Drax Group plc (DRXGF) Utility Operations & Dividend Profile
Drax Group plc is a UK-based renewable power generator, operating through generation, customer, and pellet production segments. The company owns and operates Drax Power Station, Cruachan Power Station, and other hydro-electric power stations. It supplies renewable electricity and manufactures wood pellets, positioning itself in the growing renewable energy market.
What Is the Investment Thesis for DRXGF?
Drax Group plc presents a compelling investment case centered on its strategic shift towards renewable energy and its established position in the UK power market. With a dividend yield of 2.62% and a beta of 0.74, Drax offers a blend of income and relative stability. The company's transition from coal to biomass at Drax Power Station has positioned it as a key player in renewable energy generation. Growth catalysts include increasing demand for renewable energy, supportive government policies, and expansion of pellet production capacity. However, investors may want to evaluate risks such as fluctuations in biomass prices, regulatory changes, and competition from other renewable energy sources. The company's P/E ratio of 52.54 and profit margin of 1.4% warrant careful evaluation in the context of its growth prospects and industry dynamics.
Based on FMP financials and quantitative analysis
DRXGF Key Highlights
- Market capitalization of $3.37B indicates substantial investor interest in Drax Group plc.
- Dividend yield of 2.62% provides an income stream for investors.
- Beta of 0.74 suggests lower volatility compared to the overall market.
- Gross margin of 24.3% reflects the company's ability to manage production costs.
- Operates Drax Power Station with 2,000 MW capacity, a key asset in renewable energy generation.
Who Are DRXGF's Competitors?
DRXGF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BJWTY Beijing Enterprises Water Group Limited | $22.13 | +0.00% | $3.17B | 44 |
| CGKEF The Chugoku Electric Power Co., Inc. | $6.51 | +0.00% | $2.34B | 47 |
| CSGEF China Suntien Green Energy Corporation Limited | $0.46 | +0.00% | $3.10B | 49 |
| EDRWY Electric Power Development Co., Ltd. | $24.95 | +0.00% | $4.39B | 49 |
| ENGGF Enagás, S.A. | $21.65 | +0.00% | $5.63B | 54 |
| SVMRF Magnora ASA | $2.25 | +0.00% | $162.57M | 70 |
| ENLT Enlight Renewable Energy Ltd | $84.26 | -3.25% | $11.78B | 67 |
| ATRWF Altius Renewable Royalties Corp. | $8.50 | +0.00% | $262.46M | 64 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are DRXGF's Key Strengths?
- Large-scale biomass power generation capacity.
- Vertical integration with pellet production.
- Established relationships with key customers.
- Expertise in carbon capture technology.
What Are DRXGF's Weaknesses?
- Reliance on biomass as a fuel source, subject to price fluctuations.
- Exposure to regulatory changes and government policies.
- Relatively low profit margin of 1.4%.
- High P/E ratio of 52.54.
What Could Drive DRXGF Stock Higher?
- Government policies supporting renewable energy generation in the UK.
- Increasing demand for renewable electricity from businesses and households.
- Potential expansion of pellet production capacity.
- Development and deployment of carbon capture technology.
- International expansion into new markets.
What Are the Key Risks for DRXGF?
- Fluctuations in biomass prices.
- Changes in government policies and regulations.
- Competition from other renewable energy sources.
- Technological advancements that could disrupt the biomass power generation market.
- Limited financial disclosure due to OTC listing.
What Are the Growth Opportunities for DRXGF?
- Expansion of Pellet Production: Drax has the opportunity to increase its pellet production capacity to meet the growing demand for biomass as a renewable fuel source. The global wood pellet market is projected to reach $15 billion by 2027, presenting a significant growth opportunity for Drax. Investing in new pellet production facilities and optimizing existing operations can enhance Drax's market share and profitability. Timeline: Ongoing, with continuous investment in pellet production capacity.
- Development of Carbon Capture Technology: Drax is exploring the development and deployment of carbon capture and storage (CCS) technology at its Drax Power Station. CCS technology has the potential to significantly reduce carbon emissions from biomass power generation, making it a carbon-negative process. Government incentives and funding for CCS projects could provide a substantial boost to Drax's CCS initiatives. Timeline: Ongoing, with pilot projects and feasibility studies underway.
- Growth in Renewable Electricity Supply: Drax can expand its renewable electricity supply business by targeting new customer segments and offering innovative energy solutions. The increasing demand for renewable electricity from businesses and households presents a significant growth opportunity. Drax can leverage its existing generation assets and develop new renewable energy projects to meet this demand. Timeline: Ongoing, with continuous efforts to expand customer base.
- International Expansion: Drax can explore opportunities to expand its operations into new international markets. The growing demand for renewable energy in countries around the world presents a significant growth opportunity for Drax. Expanding into new markets can diversify Drax's revenue streams and reduce its reliance on the UK market. Timeline: Medium-term, with potential market entry in the next 3-5 years.
- Investment in Hydro Power Assets: Drax can further invest in hydro power assets to increase its renewable energy generation capacity. Hydro power is a reliable and established renewable energy technology. Acquiring or developing new hydro power plants can enhance Drax's portfolio of renewable energy assets and contribute to its growth. Timeline: Long-term, with potential acquisitions and developments over the next 5-10 years.
What Opportunities Does DRXGF Have?
- Expansion of pellet production capacity.
- Development and deployment of carbon capture technology.
- Growth in renewable electricity supply.
- International expansion into new markets.
What Threats Does DRXGF Face?
- Competition from other renewable energy sources.
- Fluctuations in biomass prices.
- Changes in government policies and regulations.
- Technological advancements that could disrupt the biomass power generation market.
What Are DRXGF's Competitive Advantages?
- Scale and Infrastructure: Drax Power Station is a large-scale biomass-fired power plant with significant infrastructure, providing a competitive advantage.
- Vertical Integration: Drax's pellet production business provides a secure supply of biomass fuel, reducing its reliance on external suppliers.
- Established Relationships: Drax has long-standing relationships with key customers, including National Grid and industrial customers.
- Technological Expertise: Drax has developed expertise in biomass power generation and carbon capture technology.
What Does DRXGF Do?
Drax Group plc, established in 2005 and headquartered in Selby, United Kingdom, is a renewable power generation company committed to a low-carbon future. The company operates through three key segments: Generation, Customers, and Pellet Production. The Generation segment focuses on providing renewable, dispatchable power and system support services to the electricity grid. Drax owns and operates Drax Power Station, a 2,000 MW facility in North Yorkshire, which has transitioned from coal to biomass, significantly reducing its carbon footprint. Additionally, the company operates Cruachan Power Station, a 440 MW pumped hydro storage station in Argyll and Bute, and Lanark and Galloway hydro-electric power stations with a combined capacity of 126 MW in southwest Scotland. The Customers segment offers non-generation system support and energy management services. The Pellet Production segment manufactures and sells compressed wood pellets, a low-carbon fuel source, with production facilities in North America and Europe. Drax also operates the Daldowie fuel plant, which processes sludge into dry, low-odour fuel pellets. The company supplies renewable electricity to businesses and homes, contributing to the UK's renewable energy targets.
What Products and Services Does DRXGF Offer?
- Generates renewable electricity from biomass, hydro, and other sources.
- Operates Drax Power Station, a major biomass-fired power plant.
- Produces and sells compressed wood pellets for use as a renewable fuel.
- Provides system support services to the electricity grid.
- Offers energy management services to businesses.
- Converts sludge into dry, low-odour fuel pellets.
How Does DRXGF Make Money?
- Generates revenue from the sale of electricity to the grid.
- Earns revenue from the sale of wood pellets to industrial and residential customers.
- Provides system support services to National Grid.
- Offers energy management services to businesses, helping them optimize their energy consumption.
What Industry Does DRXGF Operate In?
Drax Group plc operates within the renewable utilities sector, which is experiencing significant growth driven by increasing global demand for clean energy and supportive government policies. The UK, in particular, has set ambitious targets for reducing carbon emissions and increasing renewable energy generation. The competitive landscape includes companies like BJWTY, CGKEF, CSGEF, EDRWY, and ENGGF, all vying for market share in the renewable energy sector. Drax's focus on biomass and hydro power positions it uniquely within this landscape, offering a diversified approach to renewable energy generation. The market is characterized by technological advancements, regulatory changes, and evolving consumer preferences for sustainable energy solutions.
Who Are DRXGF's Key Customers?
- National Grid (UK's electricity system operator)
- Industrial customers who use wood pellets for heating and power generation.
- Commercial businesses seeking renewable electricity supply.
- Residential customers seeking renewable electricity supply.
ROE 4%Key Financial Metrics
Return on equity for Drax Group plc stands at 3.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.6%, showing how much profit it generates from its asset base. DRXGF trades at a trailing price-to-earnings ratio of 44.93, above the Utilities sector average of ~28x. Its free cash flow yield is 20.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.07 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.2%, the inverse of the P/E and a quick read on earnings relative to price.
Drax Group plc (DRXGF) Valuation Context
Valued at $3.37B, DRXGF is classified as a mid-cap stock. Relative to its peer group, DRXGF's quantitative score of 45/100 is roughly in line with the peer average of 49/100.
Company Profile
Drax Group plc operates in the Renewable Utilities industry within the Utilities sector. It is headquartered in Selby, GB. The company is led by CEO Dwight Daniel Willard Gardiner. DRXGF has traded publicly since 2013.
F-Score 5/9Financial Health
Drax Group plc's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.13 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Drax Group plc revenue of about $5.33B for fiscal 2026, with EPS near $0.78. The estimate reflects 6 contributing analysts.
DRXGF Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Drax's future performance, indicating that key stakeholders believe in the company's growth potential.
- Community sentiment has shifted positively, with discussions highlighting Drax's commitment to sustainability and renewable energy initiatives.
- Analysts are increasingly recognizing Drax's role in the green energy transition, which is resonating well with environmentally conscious investors.
- Recent developments in government policies favoring renewable energy sources have bolstered market perception, enhancing Drax's standing as a leader in the sector.
Bear Case
- Concerns over regulatory challenges in the renewable energy sector have emerged, creating uncertainty around Drax's operational landscape.
- Some community members express skepticism about the pace of Drax's growth, questioning whether it can keep up with rising competition in the green energy market.
- Recent reports suggest potential delays in project timelines, which could impact Drax's ability to meet investor expectations in the near term.
- Market sentiment has been tempered by broader economic concerns, leading to cautious attitudes among investors regarding future performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
DRXGF Latest News
No recent news available for DRXGF.
DRXGF Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for DRXGF.
Price Targets
Wall Street price target analysis for DRXGF.
DRXGF MoonshotScore
What does this score mean?
The MoonshotScore rates DRXGF's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Dwight Daniel Willard Gardiner
CEO
Dwight Daniel Willard Gardiner serves as the CEO of Drax Group plc. His background includes extensive experience in the energy sector, with a focus on renewable energy and sustainable business practices. He has held various leadership positions in energy companies, driving strategic initiatives and operational improvements. Gardiner's expertise spans across power generation, energy trading, and renewable energy development. He is known for his commitment to innovation and sustainability in the energy industry.
Track Record: Under Dwight Daniel Willard Gardiner's leadership, Drax Group plc has focused on transitioning to renewable energy sources and expanding its pellet production capacity. He has overseen the development of carbon capture technology and the growth of the company's renewable electricity supply business. His strategic decisions have positioned Drax as a key player in the UK's renewable energy market.
DRXGF OTC Market Information
The OTC Other tier, where DRXGF trades, represents the lowest tier of the OTC market. Companies in this tier often have limited or no financial disclosure, making it difficult for investors to assess their financial health and operational performance. Unlike companies listed on major exchanges like the NYSE or NASDAQ, OTC Other companies do not have to meet minimum listing standards, such as minimum share price or market capitalization requirements. This lack of regulation and oversight increases the risk associated with investing in OTC Other stocks.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases the risk of investing in DRXGF.
- Low trading volume and wide bid-ask spreads can make it difficult to buy or sell shares.
- Lack of regulatory oversight increases the potential for fraud or manipulation.
- The OTC Other tier is often associated with speculative or high-risk investments.
- DRXGF may not meet the listing requirements of major exchanges.
- Verify the company's registration and regulatory filings.
- Review the company's financials, if available.
- Assess the company's business model and competitive landscape.
- Evaluate the management team and their track record.
- Understand the risks associated with investing in OTC stocks.
- Consult with a financial advisor before investing.
- Check for any news or press releases about the company.
- Drax Group plc is a UK-based company with established operations in renewable energy.
- The company operates Drax Power Station, a major biomass-fired power plant.
- Drax Group plc has a market capitalization of $3.37B.
- The company has a dividend yield of 2.62%.
- Drax Group plc is listed on the London Stock Exchange (DRX.L).
What Investors Ask About Drax Group plc (DRXGF) — Utilities
What does Drax Group plc do?
Drax Group plc is a renewable energy company focused on generating electricity from sustainable sources. The company operates through three segments: Generation, Customers, and Pellet Production. Drax owns and operates Drax Power Station, which has been converted from coal to biomass, making it one of the largest biomass-fired power plants in the world. The company also produces and sells wood pellets, a renewable fuel source, and provides energy management services to businesses. Drax contributes to the UK's renewable energy targets and aims to reduce carbon emissions through its sustainable energy solutions.
What are the main risks for DRXGF?
The main risks for Drax Group plc include fluctuations in biomass prices, which can impact the company's profitability. Changes in government policies and regulations regarding renewable energy can also affect Drax's business. Competition from other renewable energy sources, such as wind and solar, poses a threat to Drax's market share. Additionally, technological advancements that could disrupt the biomass power generation market could impact Drax's long-term prospects. The OTC listing also introduces risks related to limited financial disclosure and liquidity.
What are the key factors to evaluate for DRXGF?
Drax Group plc (DRXGF) holds an AI score of 45/100 (low). Not financial advice.
How frequently does DRXGF data refresh on this page?
DRXGF prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven DRXGF's recent stock price performance?
Drax Group plc (DRXGF) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Large-scale biomass power generation capacity. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider DRXGF overvalued or undervalued right now?
Valuing Drax Group plc (DRXGF) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying DRXGF?
Before investing in Drax Group plc (DRXGF), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding DRXGF to a portfolio?
Key strength of Drax Group plc (DRXGF): Large-scale biomass power generation capacity. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for DRXGF.
- OTC market data may be less reliable than exchange-listed data.