Drax Group plc (DRX.XLON) Quality Score
Business quality remains strong (avg 75/100), but growth is pulling the composite down (avg 50/100).
Broad-market heuristics · Not a buy/sell signal
Valuation and growth
Valuation
Growth
Above 30x, priced for sustained outperformance
Under 20x cash flow, well covered
Below 2%, essentially flat
Above 10% CAGR, strong compounder
Business Quality & Capital Allocation
Shrinking >2%, active buybacks
Expanded 3+pp, strong improvement
Net debt/FCF of 1.5x, somewhat elevated
10–15%, respectable returns
Drax Group (DRX.XLON) quality: score, margins and returns
Drax Group (DRX.XLON) scores 69/100 on Intrinsiqq's quality score (a solid business), a weighted blend of 8 metrics each scored 0 to 100, on 11.7% operating margins and 10.2% ROIC. Every metric is computed from company filings; this is analysis, not investment advice.
Frequently asked
Is Drax Group (DRX.XLON) a high-quality business?+
Drax Group scores 69 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a solid business on these measures. Recent figures include a 11.7% operating margin and a 10.2% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.
What does Drax Group's quality score measure?+
Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from DRX.XLON's company filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Drax Group scores well and where it falls behind.
What is Drax Group's return on invested capital (ROIC)?+
Drax Group earns about 10.2% on its invested capital, which is solid. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to DRX.XLON's margins and growth on this scorecard to judge durability.
How profitable is Drax Group?+
Drax Group runs an operating margin of about 11.7% and a net margin of about 1.3%. Revenue has grown at roughly 1.5% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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