Drax Group plc
Drax Group plc Fundamental Analysis
Drax Group plc (DRXGF) shows weak financial fundamentals with a PE ratio of -95.28, profit margin of -0.92%, and ROE of -2.02%. The company generates $3.2B in annual revenue with weak year-over-year growth of -24.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -6.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DRXGF's fundamental strength across five key dimensions:
Efficiency Score
WeakDRXGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDRXGF trades at attractive valuation levels.
Growth Score
WeakDRXGF faces weak or negative growth trends.
Financial Health Score
ExcellentDRXGF maintains a strong and stable balance sheet.
Profitability Score
WeakDRXGF struggles to sustain strong margins.
Key Financial Metrics
Is DRXGF Expensive or Cheap?
P/E Ratio
DRXGF trades at -95.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DRXGF's PEG of -1.28 indicates potential undervaluation.
Price to Book
The market values Drax Group plc at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.26 times EBITDA. This is generally considered low.
How Well Does DRXGF Make Money?
Net Profit Margin
For every $100 in sales, Drax Group plc keeps $-0.92 as profit after all expenses.
Operating Margin
Core operations generate 10.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.02 in profit for every $100 of shareholder equity.
ROA
Drax Group plc generates $-0.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Drax Group plc produces operating cash flow of $518.26M, showing steady but balanced cash generation.
Free Cash Flow
Drax Group plc generates strong free cash flow of $353.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.05 in free cash annually.
FCF Yield
DRXGF converts 16.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-95.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How DRXGF Stacks Against Its Sector Peers
| Metric | DRXGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -95.28 | 20.45 | Better (Cheaper) |
| ROE | -2.02% | 906.00% | Weak |
| Net Margin | -0.92% | 801.00% | Weak |
| Debt/Equity | 0.67 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 1.46 | Neutral |
| ROA | -0.83% | -5965.00% (disorted) | Weak |
DRXGF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Drax Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.94%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
108600.57%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
114.58%
Industry Style: Defensive, Dividend, Income
High Growth