Drax Group PLC
LSE:DRX

Watchlist Manager
Drax Group PLC Logo
Drax Group PLC
LSE:DRX
Watchlist
Price: 684.5 GBX -2% Market Closed
Market Cap: 2.4B GBX

Operating Margin
Drax Group PLC

13.8%
Current
7%
Average
14.2%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
13.8%
=
Operating Profit
841.5m
/
Revenue
6.1B

Operating Margin Across Competitors

Drax Group PLC
Glance View

Market Cap
2.5B GBX
Industry
Utilities

Once nestled in the coal-rich heart of Britain, Drax Group PLC began its journey as a major coal-fired power station, renowned for its role in fueling the UK's electricity grid. This legacy company, rooted in the traditional energy sector, would face the inevitability of change as global imperatives shifted towards sustainability and environmental responsibility. As whispers of a cleaner, more sustainable future grew louder, Drax embarked on a transformative journey. In a strategic pivot, it shifted focus from coal to biomass, eventually evolving into the world’s largest renewable energy resource by biomass capacity. By retrofitting its existing infrastructure, Drax adapted its vast operations to burn compressed wood pellets, a renewable energy source considered more climate-friendly than fossil fuels. This evolution not only redefined its operational model but also placed Drax at the forefront of the UK’s renewable energy landscape. Today, Drax Group is more than just a repurposed power station; it’s a diversified energy company with a dual focus on sustainable energy and innovation. The company operates a complex supply chain, importing sustainable biomass from across the globe, which is crucial to fueling its power operations. Through its renewable energy generation, the company capitalizes on governmental incentives and renewable energy certificates, firmly establishing a robust revenue stream. Drax’s business model has expanded to include providing energy services to a portfolio of businesses and commercial clients, ensuring a stable financial platform that balances both environmental goals and profitability. This delicate harmony of energy transformation and financial stewardship underscores Drax’s commitment to not only powering the UK but also championing a sustainable energy future.

DRX Intrinsic Value
947.56 GBX
Undervaluation 28%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
13.8%
=
Operating Profit
841.5m
/
Revenue
6.1B
What is the Operating Margin of Drax Group PLC?

Based on Drax Group PLC's most recent financial statements, the company has Operating Margin of 13.8%.

Back to Top