19 October 2026

strategyland.uk

Drax Group PLC (DRX)

Rank #150 of 280 - Energy - UK Equities

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Drax Group PLC

DRX.L·Energy·Market Cap £2.6b

Rank #150 of 280

Quantitative Model · 280 Stocks Analysed

£7.86

-6.15% YTD

52W: £6.96 - £9.38

Factor Analysis Summary

Editorial assessment generated from Drax Group PLC's live factor scores and sector positioning.

Based on Strategyland's proprietary 7-factor analysis, Drax Group PLC (DRX.L) currently holds an overall rank of #150 out of 280 FTSE 100 constituents, reflecting its weighted composite score across liquidity, valuation, profitability, solvency, asset efficiency, market trading, and technical dimensions.

Key strengths include asset efficiency, where it demonstrates highly efficient capital deployment, converting assets into revenue and returns effectively; market trading, where it demonstrates strong market trading characteristics with favourable volume trends and institutional participation; and valuation (P/E 143.7, dividend yield 3.8%), where it demonstrates reasonable valuation with several price-based metrics ranking favourably.

Areas requiring attention include profitability (ROE 3.9%, net margin 0.3%), where compressed margins and weak returns on equity weigh on the earnings profile, as well as liquidity, where thin trading volumes could increase transaction costs and slippage.

Within the Energy sector, Drax Group PLC sits at composite rank #150, trailing the Energy peer average (rank 118). Among 7 Energy names in our coverage, it ranks above 2 peers and below 4.

The composite profile is weighed down by 3 below-average factor scores, with profitability (rank 270/280) representing the most significant drag on its #150 overall standing.

Strongest Factors

Asset Efficiency — Rank 26/280 (top quartile)
Market Trading — Rank 59/280 (top quartile)
Valuation — Rank 105/280 (above average)

Weakest Factors

Profitability — Rank 270/280 (below average)
Liquidity — Rank 225/280 (below average)

Score Analysis

Drax Group PLC is ranked #150 out of 280 UK stocks. Lower factor scores indicate better performance in that category.

Factor Breakdown

147/280

Average Score

Liquidity

Weak225/280

Valuation

Good105/280

Profitability

Weak270/280

Solvency

Fair155/280

Asset Efficiency

Excellent26/280

Mkt Trading

Excellent59/280

Technical

Weak189/280

1. Liquidity

Score: 225/280

How liquid is DRX and can it meet its short-term obligations?

2/6

liquidity criteria met

Metric

Sector Range

Value

Rank

✓

Quick Ratio

0.8 - 1.3

0.91xRank 80/280

Range: 0.8 - 1.3Rank 80/280

✓

Current Ratio

1.0 - 1.5

1.07xRank 156/280

Range: 1.0 - 1.5Rank 156/280

✗

TTM Operating Cash Flow

1.0 - 2.0

0.31xRank 162/280

Range: 1.0 - 2.0Rank 162/280

–

Liquidity Coverage Ratio

N/A

Range: N/A

✗

Intangible Asset Ratio

3 - 12

0.01xRank 146/280

Range: 3 - 12Rank 146/280

✗

Cash-to-Debt Ratio

0.2 - 0.7

0.09xRank 203/280

Range: 0.2 - 0.7Rank 203/280

Key Liquidity Metrics

Quick Ratio

0.91x

Sector: 0.8 - 1.3

Current Ratio

1.07x

Sector: 1.0 - 1.5

Overall Liquidity Rank

Rank within universe#225/280

Best (1)Worst (280)

2. Valuation

Score: 105/280

Is DRX undervalued compared to its peers and fair value metrics?

5/7

valuation criteria met

Metric

Sector Range

Value

Rank

✓

FY27e P/E

8x - 18x

14.3xRank 152/280

Range: 8x - 18xRank 152/280

✓

FY26e P/E

8x - 18x

9.7xRank 41/280

Range: 8x - 18xRank 41/280

✓

FY27e Net Div Yld (%)

3.0 - 7.0

4.49%Rank 79/280

Range: 3.0 - 7.0Rank 79/280

✗

Div Payout Ratio

35 - 65

507.80%Rank 25/280

Range: 35 - 65Rank 25/280

✗

Current EV/EBITDA

5.0x - 9.0x

3.9xRank 34/280

Range: 5.0x - 9.0xRank 34/280

✓

Current P/TBV

1.0x - 3.0x

2.24xRank 133/280

Range: 1.0x - 3.0xRank 133/280

✓

Current P/B

1.0x - 3.0x

1.66xRank 145/280

Range: 1.0x - 3.0xRank 145/280

Key Valuation Metrics

TTM P/E

Price-to-Earnings

143.7x

FY26e P/E

Forward estimate

9.7x

FY27e P/E

Forward estimate

14.3x

Current P/B

Price-to-Book

1.66x

Current P/TBV

Tangible Book Value

2.24x

Current EV/EBITDA

Enterprise Value

3.9x

FY26e EV/EBITDA

Forward estimate

5.6x

FY27e EV/EBITDA

Forward estimate

5.6x

Dividend

DRX pays a dividend yield of 3.82%.

Current Yield

3.82%

FY27e Net Div Yield

4.49%

FY26e Gross DPS

0.321

FY27e Gross DPS

0.353

Dividend Per Share Forecast

3. Profitability

Score: 270/280

How profitable is DRX relative to its peers?

1/7

profitability criteria met

Metric

Sector Range

Value

Rank

✗

TTM Profit Margin

8 - 16

0.3%Rank 248/280

Range: 8 - 16Rank 248/280

✗

T12 FCF Margin

10 - 25

0.8%Rank 83/280

Range: 10 - 25Rank 83/280

✓

FY27e RoE

10 - 18

10.3%Rank 151/280

Range: 10 - 18Rank 151/280

✗

FY26 EPS Growth

15 - 30

-41.1%Rank 221/280

Range: 15 - 30Rank 221/280

✗

FY27e EPS Growth

0 - 12

-60.0%Rank 223/280

Range: 0 - 12Rank 223/280

–

NIM

N/A

Range: N/A

–

Expense Ratio

70 - 80

N/A

Range: 70 - 80

TTM Profit Margin

0.3%

Current RoCE

3.9%

FY27e RoE

10.3%

T12 FCF Margin

0.8%

EPS Growth

4. Solvency

Score: 155/280

How strong is DRX's balance sheet and financial position?

2/6

solvency criteria met

Metric

Sector Range

Value

Rank

✓

Debt/Eqt

0.5x - 1.0x

0.63xRank 162/280

Range: 0.5x - 1.0xRank 162/280

–

Interest Coverage Ratio

5x - 12x

Rank 129Rank 129/280

Range: 5x - 12xRank 129/280

✓

Net Leverage Ratio

1.0x - 2.5x

2.49xRank 142/280

Range: 1.0x - 2.5xRank 142/280

–

Altman Z-Score (Manufacturing)

<1.10 - >2.60

3.47Rank 158/280

Range: <1.10 - >2.60Rank 158/280

–

Z-Score (Non Manufacturing)

<1.10 - >2.60

Rank 147Rank 147/280

Range: <1.10 - >2.60Rank 147/280

–

CapAdeq Ratio Tier1

N/A

Range: N/A

Key Solvency Metrics

Debt/Eqt

0.63x

Net Leverage Ratio

2.49x

Interest Coverage

Rank 129

T12 FCF Margin

0.8%

Altman Z-Score

3.47

Safe Zone

01.812.995+

5. Asset Efficiency

Score: 26/280

How efficiently does DRX deploy its assets and intellectual capital?

1/5

asset efficiency criteria met

Metric

Sector Range

Value

Rank

–

Efficiency Ratio

N/A

Range: N/A

✓

TTM Asset Turnover Ratio

0.5x - 1.2x

1.03xRank 51/280

Range: 0.5x - 1.2xRank 51/280

✗

TTM CAPEX/Sales

6 - 10

4.9%Rank 89/280

Range: 6 - 10Rank 89/280

✗

Working Capital Turnover

4x - 10x

74.09xRank 6/280

Range: 4x - 10xRank 6/280

–

R&D/Sales FY27e

0.2 - 0.5

N/A

Range: 0.2 - 0.5

Overall Asset Efficiency Rank

Rank within sector peers#26/280

Best (1)Worst (280)

6. Market Trading

Score: 59/280

How liquid and actively traded is DRX?

1/2

market trading criteria met

Metric

Sector Range

Value

Rank

✗

Intraday Sentiment (%)

40 - 70

83.0%Rank 39/280

Range: 40 - 70Rank 39/280

–

10D-Avg v/s 3M-Avg Vol

N/A

90%Rank 50/280

Range: N/ARank 50/280

✓

Avg Directional Index 30D

15 - 60

23.1Rank 96/280

Range: 15 - 60Rank 96/280

–

Parabolic SAR

N/A

811.95Rank 109/280

Range: N/ARank 109/280

–

Stock Rating Rank

N/A

Rank 50Rank 50/280

Range: N/ARank 50/280

Market Cap

£2,644,132,303

Enterprise Value

£3,663,231,685

Trading Volume

7. Technical

Score: 189/280

What do the technical indicators say about DRX?

0/5

technical criteria met

Metric

Chart

Sector Range

Value

Rank

–

CMP v/s 52-WH

£9.38£6.96

-16.2%CMP: £7.86

N/A

-16.2%Rank 181/280

£9.38£6.96

-16.2%CMP: £7.86

Range: N/ARank 181/280

–

CMP v/s 52-WL

£9.38£6.96

+12.9%CMP: £7.86

N/A

12.9%Rank 67/280

£9.38£6.96

+12.9%CMP: £7.86

Range: N/ARank 67/280

–

RSI 14D

034.0 - Bearish100

N/A

34.0Rank 50/280

034.0 - Bearish100

Range: N/ARank 50/280

–

MA50 - MA200

£7.76-0.49£8.24

N/A

BearishRank 247/280

£7.76-0.49£8.24

Range: N/ARank 247/280

–

MACD Rank

Death Cross

MACD: -5.99

N/A

-5.99

Death Cross

MACD: -5.99

Range: N/A

RSI (14 Day)

34.0

Bearish

0 (Oversold)50100 (Overbought)

Moving Averages

50 SMA£7.76

200 SMA£8.24

SignalDeath Cross (Bearish)

MACD-5.99

Risk Metrics

Beta

N/A

3-Yr Std Dev

N/A

5-Yr Std Dev

N/A

Peer Comparison

How does DRX compare to other Energy stocks?

Overall Rank Comparison

Factor Score Comparison

Stock	Rank	Liquidity	Valuation	Profitability	Solvency	Mkt Trading	Technical
DRX	#150	225	105	270	155	59	189
SHEL.L	#1	165	82	69	138	43	31
HBR.L	#45	59	3	107	200	241	249
ENOG.L	#121	215	20	142	265	204	201
ITH.L	#132	262	72	182	178	177	84
CWR.L	#179	16	209	276	136	242	273
BP.L	#227	181	67	120	225	142	151

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Methodology Note

The analysis presented for Drax Group PLC is produced using Strategyland's proprietary 7-factor quantitative model, which evaluates each stock across Liquidity, Valuation, Profitability, Solvency, Asset Efficiency, Market Trading, and Technical dimensions. Individual factor scores and the composite rank reflect relative rankings within the FTSE 100 universe — a lower rank number indicates stronger performance in that category.

Underlying financial and market data is sourced from LSEG (London Stock Exchange Group) and processed through our scoring engine. Scores are recalculated as new data becomes available and should be interpreted as a systematic screening output, not a forecast of future share price performance.

This content is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Past performance and factor rankings are not indicative of future results. Please read our Risk Disclaimer before making any investment decisions.

Strategyland Research Center - strategyland.ukThis report is for informational purposes only. Not financial advice.