DRXGY (Drax Group) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

DRXGY Drax Group PLC DRXGY
65 GF Score
Price $22.66
GF Value $14.20
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Drax Group Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Drax Group is: Moderate Risk: Sensitive, better choose undervalued stock.

Drax Group  (OTCPK:DRXGY) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Drax Group Risk Assessment Related Terms

Drax Group Risk Assessment Competitor Comparison

For the Utilities - Renewable subindustry, Drax Group's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Utilities - Independent Power Producers Industry

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

* The bar in red indicates where Drax Group's Risk Assessment falls into.


DRXGY
65GF Score
Drax Group PLC DRXGY
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Drax Group (DRXGY) Overvalued in 2026?

Based on GuruFocus' analysis, Drax Group stock appears to be overvalued. The current stock price of $22.66 is trading 59.6% above its estimated GF Value™ of $14.20. GuruFocus considers Drax Group to be Significantly Overvalued.

Key valuation signals for DRXGY:

  • Risk Assessment:
  • GF Value™: $14.20 vs. price of $22.66 (59.6% above fair value)
  • GF Score™: 65/100 with 3 warning signs

No single metric tells the full story. See the DRXGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Drax Group Business Description

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 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.
65GF Score

Get the complete analysis for DRXGY

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$22.66
Price
$14.20
GF Value