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DRD

DRDGOLDNYSE:DRD Stock Report

Last Price

US$8.95

Market Cap

US$765.3m

7D

4.9%

1Y

-17.3%

Updated

19 Jan, 2022

Data

Company Financials +
DRD fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends4/6

DRD Stock Overview

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

DRDGOLD Competitors

Newmont

NYSE:NEM

US$51.9b

Barrick Gold

TSX:ABX

CA$44.9b

Sibanye Stillwater

JSE:SSW

R164.7b

Gold Fields

JSE:GFI

R139.4b

Price History & Performance

Summary of all time highs, changes and price drops for DRDGOLD
Historical stock prices
Current Share PriceUS$8.95
52 Week HighUS$13.18
52 Week LowUS$7.88
Beta1.28
1 Month Change8.49%
3 Month Change-3.03%
1 Year Change-17.28%
3 Year Change347.50%
5 Year Change54.58%
Change since IPO-88.81%

Recent News & Updates

Oct 27

DRDGOLD: Our Recommendation After Third Quarter Results

The Quarterly Gold production increased by 6.8% from the previous quarter to 46,587 ounces primarily due to an 8% increase in yield. DRDGOLD sold 45,912 ounces. The company announced it may declare an interim cash dividend in or around February 2022. I recommend buying DRD below $9.

Oct 07
DRDGOLD (NYSE:DRD) Is Very Good At Capital Allocation

DRDGOLD (NYSE:DRD) Is Very Good At Capital Allocation

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...

Jul 15

DRDGold Is A Gold Blend Of High Dividend Yield And ESG

The company produces gold by processing slime and sand left behind by old mines. Its dividend yield is among the highest in the gold space and the company has been paying dividends for 14 consecutive years. FWGR phase two looks great and some of the recent share price weakness could be related to the Zuma riots in South Africa.

Jun 24
DRDGOLD (NYSE:DRD) Is Very Good At Capital Allocation

DRDGOLD (NYSE:DRD) Is Very Good At Capital Allocation

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Shareholder Returns

DRDUS Metals and MiningUS Market
7D4.9%-2.3%-4.6%
1Y-17.3%18.7%7.7%

Return vs Industry: DRD underperformed the US Metals and Mining industry which returned 18.2% over the past year.

Return vs Market: DRD underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is DRD's price volatile compared to industry and market?
DRD volatility
DRD Average Weekly Movement4.7%
Metals and Mining Industry Average Movement8.6%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: DRD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DRD's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1895953Niel Pretoriushttps://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 CapR11.70b
Earnings (TTM)R1.44b
Revenue (TTM)R5.27b

8.1x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRD income statement (TTM)
RevenueR5.27b
Cost of RevenueR3.39b
Gross ProfitR1.88b
ExpensesR440.90m
EarningsR1.44b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)16.84
Gross Margin35.70%
Net Profit Margin27.33%
Debt/Equity Ratio0%

How did DRD perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

48%

Payout Ratio

Valuation

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

8.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DRD ($8.95) is trading above our estimate of fair value ($5.9)

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


Price To Earnings Ratio

PE vs Industry: DRD is good value based on its PE Ratio (8.1x) compared to the US Metals and Mining industry average (8.8x).

PE vs Market: DRD is good value based on its PE Ratio (8.1x) compared to the US market (17x).


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 is overvalued based on its PB Ratio (2.4x) compared to the US Metals and Mining industry average (2.2x).


Future Growth

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

-19.8%

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 (-19.8% per year).

Earnings vs Market: DRD's earnings are forecast to decline over the next 3 years (-19.8% per year).

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

Revenue vs Market: DRD's revenue is expected to decline over the next 3 years (-0.06% per year).

High Growth Revenue: DRD's revenue is forecast to decline over the next 3 years (-0.06% 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 (12.3%).


Past Performance

How has DRDGOLD performed over the past 5 years?

73.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRD has high quality earnings.

Growing Profit Margin: DRD's current net profit margins (27.3%) are higher than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: DRD's earnings have grown significantly by 73% per year over the past 5 years.

Accelerating Growth: DRD's earnings growth over the past year (126.8%) exceeds its 5-year average (73% per year).

Earnings vs Industry: DRD earnings growth over the past year (126.8%) exceeded the Metals and Mining industry 125.5%.


Return on Equity

High ROE: DRD's Return on Equity (29.9%) is considered high.


Financial Health

How is DRDGOLD's financial position?


Financial Position Analysis

Short Term Liabilities: DRD's short term assets (ZAR2.7B) exceed its short term liabilities (ZAR531.5M).

Long Term Liabilities: DRD's short term assets (ZAR2.7B) exceed its long term liabilities (ZAR996.1M).


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?

5.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRD's dividend (5.85%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: DRD's dividend (5.85%) is in the top 25% of dividend payers in the US market (3.48%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), DRD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Niel Pretorius (54 yo)

13yrs

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 ($USD2.46M) is about average for companies of similar size in the US market ($USD2.39M).

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


Leadership Team

Experienced Management: DRD's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: DRD's board of directors are considered experienced (5.1 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.


Top Shareholders

Company Information

DRDGOLD Limited's employee growth, exchange listings and data sources


Key Information

  • Name: DRDGOLD Limited
  • Ticker: DRD
  • Exchange: NYSE
  • Founded: 1895
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: US$765.327m
  • Shares outstanding: 85.51m
  • Website: https://www.drdgold.com

Number of Employees


Location

  • DRDGOLD Limited
  • Cycad House
  • Building 17
  • Johannesburg
  • Gauteng
  • 1709
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:37
End of Day Share Price2022/01/19 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.