Drax Group plc (DRXGY)
ValueMarkers Composite Index
100% below intrinsic value ($86)
Drax Group plc (DRXGY) — VMCI valuation read
Drax Group plc sits at VMCI 61/100, with the Utilities sector median at 50. That 11-point spread is the first thing to note on DRXGY: it tells the reader the composite is favorable before any single ratio is examined, and the mid-cap tier sets the comparison set.
Form 4 disclosures on DRXGY are blank for the trailing 30 days. With the insider channel offline, the EV/EBITDA delta, free-cash-flow trajectory, and the next earnings print do the talking.
**Investor frame.** The Value read on DRXGY: DRXGY trades at 18.0x earnings, 0% above the Utilities median of 18.0x, with EV/EBITDA at 13.0x against 12.0x. The Quality read: ROIC of 16.0% sits 6.0pp above the Utilities median (10.0%). The Risk read: net debt to EBITDA of -2.0x leaves covenant headroom, anchoring the bear scenario on a measurable balance-sheet metric.
DRXGY fell 0.2% over the trailing 7 days, with a -22.3% read on a 30-day basis.
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.
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