DRXGY (Drax Group) ROCE %: -3.63% (As of Dec. 2025)


DRXGY Drax Group PLC DRXGY
63 GF Score
Price $22.66
GF Value $14.39
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Drax Group ROCE %?

Drax Group DRXGY 63 ROCE % is -3.63% as of Dec. 2025. GuruFocus rates DRXGY with a GF Score™ of 63/100 and a GF Value™ of $14.39 (Significantly Overvalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Drax Group's annualized ROCE % for the quarter that ended in Dec. 2025 was -3.63%.

Drax Group  (OTCPK:DRXGY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Drax Group ROCE % Related Terms

Drax Group ROCE % Historical Data

* Premium members only.

The historical data trend for Drax Group's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Drax Group ROCE % Chart

Drax Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.87 4.14 24.19 22.03 7.79

Drax Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.00 25.83 17.23 18.49 -3.63
DRXGY
63GF Score
Drax Group PLC DRXGY
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Drax Group ROCE % Calculation

Drax Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=352.61/( ( (6812.389 - 1940.582) + (6017.938 - 1836.948) )/ 2 )
=352.61/( (4871.807+4180.99)/ 2 )
=352.61/4526.3985
=7.79 %

Drax Group's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=-159.572/( ( (7149.118 - 2541.791) + (6017.938 - 1836.948) )/ 2 )
=-159.572/( ( 4607.327 + 4180.99 )/ 2 )
=-159.572/4394.1585
=-3.63 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -3.63% mean?
Drax Group (DRXGY) has a ROCE % of -3.63% as of Dec. 2025.
Is Drax Group's ROCE % too high?
Drax Group's current ROCE % is -3.63%. Overall, Drax Group has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Drax Group's ROCE % compare to competitors?
Drax Group's ROCE % of -3.63% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROCE % is 4.79. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Independent Power Producers company?
The median ROCE % among Utilities - Independent Power Producers companies is 4.79, based on 437 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Independent Power Producers industry, the median ROCE % is 4.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drax Group's current ROCE % is -3.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drax Group stock overvalued right now?
Based on GuruFocus' analysis, Drax Group (DRXGY) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.39, compared to a current price of $22.66 — trading 57.5% above its estimated fair value. The current ROCE % is -3.63%. Drax Group's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Drax Group (DRXGY), the current ROCE % is -3.63% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

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 57.5% above its estimated GF Value™ of $14.39. GuruFocus considers Drax Group to be Significantly Overvalued.

Key valuation signals for DRXGY:

  • ROCE %: -3.63%
  • GF Value™: $14.39 vs. price of $22.66 (57.5% above fair value)
  • GF Score™: 63/100 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.
63GF Score

Get the complete analysis for DRXGY

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

$22.66
Price
$14.39
GF Value