0.81%
-5.40%
-0.24%
-3.04%
26.37%
2.38%
120.74%
AI Spotlight on DRX
Company Description
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.
The Customers segment offers non-generation system support and energy management services.The Pellet Production segment provides low carbon fuel.The company owns and operates Drax Power Station with an installed capacity of 2,000 megawatts (MW) located in Selby, North Yorkshire; Cruachan Power Station, a pumped hydro storage station, with an installed capacity of 440 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.
In addition, the company owns and operates Daldowie fuel plant that processes sludge, a plant that converts it into dry low-odour fuel pellets.Further, it 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.
Market Data
| Last Price | 622.5 |
| Change Percentage | 0.81% |
| Open | 620 |
| Previous Close | 617.5 |
| Market Cap ( Millions) | 2277 |
| Volume | 5640578 |
| Year High | 692 |
| Year Low | 407.4 |
| M A 50 | 637.15 |
| M A 200 | 605.01 |
Financial Ratios
| FCF Yield | 17.78% |
| Dividend Yield | 3.90% |
| ROE | 31.63% |
| Debt / Equity | 64.11% |
| Net Debt / EBIDTA | 89.01% |
| Price To Book | 1.11 |
| Price Earnings Ratio | 3.68 |
| Price To FCF | 5.62 |
| Price To sales | 0.33 |
| EV / EBITDA | 2.69 |
News
- Jan -19 - Drax Group Insider Ups Holding During Year
- Jan -15 - How mega-polluters take advantage of billions in green loans
- Jan -02 - Top UK Dividend Stocks To Consider In January 2025
- Dec -12 - A million tonnes of trees to be used for ‘sustainable’ plane fuel
- Dec -04 - 3 Dividend Stocks On UK Exchange Yielding Up To 8.4%
- Nov -12 - FTSE 100 drops to three-month low amid global sell-off
- Nov -05 - Top UK Dividend Stocks To Consider In November 2024
- Oct -16 - Top UK Dividend Stocks Featuring Livermore Investments Group And Two More
- Oct -14 - Is It Too Late To Consider Buying Drax Group plc (LON:DRX)?
- Oct -09 - Drax Group PLC (DRXGF) (Q2 2024) Earnings Call Highlights: Strong Financial Performance and ...
- Sep -27 - 3 UK Dividend Stocks With Yields Up To 7.0%
- Sep -24 - INTRODUCING ELIMINI: WORKING TO DELIVER CARBON REMOVALS AT MEGATON SCALE AND 24/7 RENEWABLE POWER
- Sep -24 - Drax commits $12.5bn for US power plants as group is lured by IRA tax breaks
- Sep -16 - New report finds Drax Contributes $1 Billion to Canadian Economy
- Sep -09 - Top 3 UK Dividend Stocks To Consider
- Aug -30 - Drax to Pay £25 Million Following Ofgem Biomass Probe
- Aug -29 - Shell cuts oil jobs as end of fossil fuel looms
- Aug -29 - Energy & Utilities Roundup: Market Talk
- Aug -29 - Drax to pay £25m penalty for data reporting breach after wood pellet probe
- Aug -29 - Drax to pay £25m penalty for data-reporting breach after wood-burning probe
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Customers
Expected Growth : 7.92 %
What the company do ?
Drax Group plc's customers include industrial, commercial, and residential consumers of electricity, as well as other energy suppliers and traders in the UK and abroad.
Why we expect these perspectives ?
Drax Group plc's 7.92% growth is driven by increasing demand for renewable energy, strategic acquisitions, and expansion into new markets. The company's focus on biomass and hydroelectric power generation, coupled with favorable government policies and incentives, have contributed to its growth momentum.
Segment n°2 -> Generation
Expected Growth : 8.23 %
What the company do ?
Drax Group plc's generation segment produces and sells electricity from its biomass-fueled power stations, with a total capacity of 2,556 MW.
Why we expect these perspectives ?
Drax Group plc's 8.23% growth is driven by increasing demand for renewable energy, successful biomass conversion, and improved operational efficiency. Additionally, the UK's transition to a low-carbon economy and government incentives for clean energy have contributed to the company's growth.
Segment n°3 -> Pellet Production
Expected Growth : 10.98 %
What the company do ?
Drax Group plc's pellet production involves manufacturing compressed wood pellets from sustainable biomass, primarily used as a renewable energy source for power generation.
Why we expect these perspectives ?
Drax Group plc's pellet production growth of 10.98% is driven by increasing demand for renewable energy, government incentives for biomass power generation, and expansion into new markets. Additionally, the company's strategic acquisitions and investments in pellet production facilities have enhanced capacity and efficiency, contributing to the growth.
Segment n°4 -> Exceptional Items and Certain Remeasurements
Expected Growth : 7.77 %
What the company do ?
Exceptional Items and Certain Remeasurements from Drax Group plc refer to one-time, unusual transactions or adjustments, such as impairments, restructuring costs, and changes in accounting estimates, that are separately disclosed to provide a clearer view of the company's underlying performance.
Why we expect these perspectives ?
Drax Group plc's exceptional items and certain remeasurements growth of 7.77% is driven by increased biomass generation, higher electricity prices, and improved operational efficiency. Additionally, the company's strategic acquisitions and divestments, as well as favorable foreign exchange rates, have contributed to this exceptional growth.
Drax Group Plc Products
| Product Range | What is it ? |
|---|---|
| Renewable Energy | Drax Group plc generates renewable energy through its biomass power stations, hydroelectric power stations, and wind farms. |
| Electricity Generation | Drax Group plc generates electricity from a diverse portfolio of power stations, including biomass, gas, and hydroelectric power stations. |
| System Support Services | Drax Group plc provides system support services, including frequency response, reserve power, and grid stability services. |
| Energy Storage | Drax Group plc offers energy storage solutions, including pumped hydro storage and battery storage. |
| Business Energy Supply | Drax Group plc supplies energy to businesses, offering tailored energy solutions and expert advice. |
| Haven Power | Drax Group plc's Haven Power business provides business energy solutions, including energy supply, energy management, and sustainability services. |
Drax Group plc's Porter Forces
Threat Of Substitutes
Drax Group plc operates in the renewable energy sector, which has a relatively low threat of substitutes. While there are alternative energy sources, such as fossil fuels, the shift towards renewable energy is driven by government policies and regulations, reducing the threat of substitutes.
Bargaining Power Of Customers
Drax Group plc's customers are primarily large industrial and commercial entities, which have limited bargaining power due to their dependence on the company's renewable energy solutions.
Bargaining Power Of Suppliers
Drax Group plc relies on a diverse range of suppliers for biomass and other inputs, which reduces the bargaining power of individual suppliers. However, the company is still exposed to fluctuations in global commodity prices.
Threat Of New Entrants
The renewable energy sector is experiencing rapid growth, attracting new entrants and increasing competition. Drax Group plc faces a high threat of new entrants, which could erode its market share and pricing power.
Intensity Of Rivalry
The renewable energy sector is highly competitive, with numerous established players and new entrants vying for market share. Drax Group plc operates in a highly competitive environment, which increases the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 42.39% |
| Debt Cost | 9.71% |
| Equity Weight | 57.61% |
| Equity Cost | 9.71% |
| WACC | 9.71% |
| Leverage | 73.59% |
Drax Group plc : Quality Control
Drax Group plc passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ERG.MI | ERG S.p.A., through its subsidiaries, produces energy through renewable sources in Italy, France, Germany, Poland, Bulgaria, and Romania. The company generates electricity through wind, solar, hydroelectric, and thermoelectric power plants, … |
| FORTUM.HE | Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Germany, the United Kingdom, Russia, the Netherlands, the Baltic Rim … |
| ANE.MC | Corporación Acciona Energías Renovables, S.A. engages in the promotion, construction, operation, maintenance, and development of renewable energy projects in Spain and internationally. The company operates onshore wind, photovoltaic solar, hydraulic, … |
| BKW.SW | BKW AG operates as an international energy and infrastructure company, which plans, builds, and operates infrastructure to produce and supply energy to businesses, households, and the public sector in Switzerland, … |
| AY | Atlantica Sustainable Infrastructure plc owns, manages, and invests in renewable energy, storage, natural gas and heat, electric transmission lines, and water assets in the United States, Canada, Mexico, Peru, Chile, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Drax
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BKW
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Atlantica Sustainable Infrastructure
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1-Year Total Return ->
4
ERG
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5
Fortum
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1-Year Total Return ->
6
