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Drax Group (MEX:DRX N) Moat Score : 4/10 (As of Jul. 05, 2025)


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What is Drax Group Moat Score?

Drax Group has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Drax Group has Narrow Moat: Drax Group PLC has a discernible but modest moat due to its position in the energy sector, benefiting from some regulatory barriers and economies of scale. However, it lacks strong brand strength, customer loyalty, and significant intellectual property, limiting its competitive advantage.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Drax Group might have Narrow Moat - Discernible but modest moat.


Competitive Comparison of Drax Group's Moat Score

For the Utilities - Renewable subindustry, Drax Group's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Drax Group's Moat Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Drax Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Drax Group's Moat Score falls into.


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Drax Group  (MEX:DRX N) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Drax Group Moat Score Related Terms

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Drax Group Business Description

Traded in Other Exchanges
Address
Drax Power Station, Selby, North Yorkshire, GBR, YO8 8PH
Drax Group PLC is a UK-based renewable energy company engaged in renewable power generation, the production of sustainable biomass and the sale of renewable electricity to businesses. It operates a generation portfolio of sustainable biomass, hydro-electric, and pumped hydro storage assets across four sites in England and Scotland. The company also operates a global bioenergy supply business with manufacturing facilities in the United States and Canada, producing compressed wood pellets for its own use and for customers in Europe and Asia. Its segments include Pellet Production, Generation, and Customers. The majority of its revenue is generated from the Customers segment which sells renewable electricity to industrial and commercial customers in the United Kingdom.

Drax Group Headlines

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