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Drax Group (DRX) Fair Value & Analysis

Utilities · GB · Market cap 2.6B GBX

DG Drax Group DRX · LSE
Price£7.57
Fair Value£9.17
Upside+21.1%
Quality95/100
Evidence: High Range £6.88 – £11.46

Fair value as of: Jun 24, 2026

From 26 valuation models · updated 5 days ago

Share price −5.8% over the past month.

Price vs Fair Value (12 months)

£9.14 £6.13 Fair Value £9.17 Jun 2025 Jun 2026

12‑month range £6.13 – £9.14 · fair‑value band £6.88 – £11.46 · the £7.57 price screens below the £9.17 fair value. As of Jun 24, 2026.

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Analysis

Drax Group (DRX) currently trades at £7.57, while our model-based Fair Value estimate is £9.17 — implying the stock looks roughly 21.1% undervalued today. We read business quality at 95/100 (high quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Drax Group generated revenue of £5.4B at a net margin of 1.4%. Revenue declined 8.7% year over year. It earns a return on equity of 3.6%. Net debt stands at £846M. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 5.4B GBX
Revenue growth (YoY) -8.7%
Net margin 1.4%
Return on equity 3.6%
Free cash flow 528M GBX FY2025
P/E ratio 39.3
More key figures
Operating margin 10.9%
EPS (TTM) £0.2000
Dividend yield 3.7%
EPS growth (YoY) -31.1%
Net debt 846M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. The company operates through four segments: Pellet Production, Biomass Generation, Flexible Generation, and Energy Solutions. The company provides renewable, dispatchable power, and system support services. It is involved in production and sale of biomass pellets; generation and sale of electricity from biomass assets, pumped storage, run-of-river hydro, and OCGTs assets; and processing and sale of waste-derived pellets, as well as supply of electricity 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 south-west Scotland. In addition, it owns and operates Daldowie fuel plant that proc…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Drax Group reported revenue of £5.4B in FY2025 versus £5.1B in FY2021, a compound +1.3%/yr. Reported net income was £73.0M in FY2025, compounding +7.3%/yr from FY2021.

Revenue +1.3%/yr
FY21 £5.1B
FY22 £7.8B
FY23 £8.1B
FY24 £6.2B
FY25 £5.4B
Net income +7.3%/yr
FY21 £55.1M
FY22 £85.1M
FY23 £562M
FY24 £527M
FY25 £73.0M

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Similar stocks

6 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥26.94 ¥25.13 -7%
Ørsted A/S, D2G €21.98 €8.27 -62%
Huaneng Lancang River Hydropower Inc 600025 ¥9.73 ¥2.95 -70%
Adani Green Energy Limited ADANIGREEN ₹1,526 ₹139.34 -91%
AXIA Energia SA AXIAP $10.74 $9.67 -10%
VERBUND AG OEWA €56.00 €110.03 +96%

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Frequently asked questions

Is Drax Group (DRX) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £9.17 versus a price of £7.57 — about +21% (undervalued). Model-based estimate, not financial advice.
What is the fair value of DRX?
Our 21-model fair value for Drax Group is £9.17 (as of Jun 24, 2026), built from audited fundamentals. The current price is £7.57.
What is the quality score of DRX?
Drax Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Drax Group (DRX)?
Drax Group reported trailing-twelve-month revenue of about £5.4B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of DRX?
The net profit margin of Drax Group is about 1.4%, meaning it keeps roughly 1.4% of revenue as net income. Based on the latest reported figures.
Does Drax Group pay a dividend?
Drax Group currently shows a dividend yield of about 3.68% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.