DRDGOLD (NYSE:DRD) - Share price, News & Analysis

DRD fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	5/6

DRD Stock Overview

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa.

Rewards

PE ratio (9.3x) is below the US market (15.3x)

Risk Analysis

Earnings are forecast to decline by an average of 6.3% per year for the next 3 years

Unstable dividend track record

DRDGOLD Competitors

Newmont

NYSE:NEM

US$53.3b

Barrick Gold

TSX:ABX

CA$47.4b

Anglo American Platinum

JSE:AMS

R407.2b

Gold Fields

JSE:GFI

R157.3b

Price History & Performance

Summary of all time highs, changes and price drops for DRDGOLD
Historical stock prices
Current Share Price	US$6.71
52 Week High	US$13.18
52 Week Low	US$6.12
Beta	1.27
1 Month Change	-24.86%
3 Month Change	-23.75%
1 Year Change	-45.18%
3 Year Change	287.86%
5 Year Change	107.74%
Change since IPO	-91.61%

Recent News & Updates

May 13

There's Been No Shortage Of Growth Recently For DRDGOLD's (NYSE:DRD) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 11

DRDGold Limited: The Selloff Seems Overdone

Gold prices are back to their levels from the middle of January, but the market valuation of DRDGold has decreased 17% compared to then. Gold has historically been a good inflation hedge, and I think that it’s likely to resume its upward trend. In my view, the Q1 2022 results of DRDGold were good, and this seems like a good time to pick up some shares cheap.

Feb 20

DRDGOLD (NYSE:DRD) Is Paying Out Less In Dividends Than Last Year

DRDGOLD Limited ( NYSE:DRD ) has announced it will be reducing its dividend payable on the 24th of March to US$0.10...

Shareholder Returns

	DRD	US Metals and Mining	US Market
7D	4.4%	2.3%	-2.7%
1Y	-45.2%	-5.9%	-12.9%

Return vs Industry: DRD underperformed the US Metals and Mining industry which returned -5.9% over the past year.

Return vs Market: DRD underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is DRD's price volatile compared to industry and market?
DRD volatility
DRD Average Weekly Movement	7.4%
Metals and Mining Industry Average Movement	10.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: DRD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DRD's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1895	953	Niel Pretorius	https://www.drdgold.com

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. The company is involved in the exploration, extraction, processing, and smelting activities. It recovers gold from surface tailings in the Witwatersrand basin in Gauteng province.

DRDGOLD Fundamentals Summary

How do DRDGOLD's earnings and revenue compare to its market cap?
DRD fundamental statistics
Market Cap	R9.14b
Earnings (TTM)	R986.40m
Revenue (TTM)	R4.79b

9.3x

P/E Ratio

1.9x

P/S Ratio

Is DRD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRD income statement (TTM)
Revenue	R4.79b
Cost of Revenue	R3.52b
Gross Profit	R1.27b
Other Expenses	R286.10m
Earnings	R986.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	11.50
Gross Margin	26.57%
Net Profit Margin	20.59%
Debt/Equity Ratio	0%

How did DRD perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

52%

Payout Ratio

Valuation

Is DRDGOLD undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.27x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: DRD ($6.71) is trading above our estimate of fair value ($4.24)

Significantly Below Fair Value: DRD is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: DRD is poor value based on its PE Ratio (9.3x) compared to the US Metals and Mining industry average (8.3x).

PE vs Market: DRD is good value based on its PE Ratio (9.3x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: DRD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: DRD's PB Ratio (1.8x) is in line with the US Metals and Mining industry average.

Future Growth

How is DRDGOLD forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-6.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRD's earnings are forecast to decline over the next 3 years (-6.3% per year).

Earnings vs Market: DRD's earnings are forecast to decline over the next 3 years (-6.3% per year).

High Growth Earnings: DRD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DRD's revenue (3.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: DRD's revenue (3.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DRD's Return on Equity is forecast to be low in 3 years time (12.7%).

Past Performance

How has DRDGOLD performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

65.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DRD has high quality earnings.

Growing Profit Margin: DRD's current net profit margins (20.6%) are lower than last year (24.8%).

Past Earnings Growth Analysis

Earnings Trend: DRD's earnings have grown significantly by 65.9% per year over the past 5 years.

Accelerating Growth: DRD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DRD had negative earnings growth (-21.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (94.3%).

Return on Equity

High ROE: DRD's Return on Equity (19.8%) is considered low.

Financial Health

How is DRDGOLD's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DRD's short term assets (ZAR2.8B) exceed its short term liabilities (ZAR553.8M).

Long Term Liabilities: DRD's short term assets (ZAR2.8B) exceed its long term liabilities (ZAR1.0B).

Debt to Equity History and Analysis

Debt Level: DRD is debt free.

Reducing Debt: DRD currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: DRD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DRD has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is DRDGOLD current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DRD's dividend (5.63%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: DRD's dividend (5.63%) is in the top 25% of dividend payers in the US market (4.11%)

Stability and Growth of Payments

Stable Dividend: DRD's dividend payments have been volatile in the past 10 years.

Growing Dividend: DRD's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52%), DRD's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (62.7%), DRD's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure

CEO

Niel Pretorius (54 yo)

13.33yrs

Tenure

R37,539,000

Compensation

Mr. Daniel Johannes Pretorius, also known as Niel, B.Proc., LLB, LLM, serves as Chief Executive Officer at DRDGOLD Ltd. since January 1, 2009. Mr. Pretorius served as the Chief Executive Officer of Ergo Mi...

CEO Compensation Analysis

Compensation vs Market: Niel's total compensation ($USD2.36M) is about average for companies of similar size in the US market ($USD2.59M).

Compensation vs Earnings: Niel's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: DRD's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: DRD's board of directors are considered experienced (5.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30