NYSE:DRD

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has DRDGOLD's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

DRD

-0.3%

US Metals and Mining

-1.3%

US Market


1 Year Return

171.1%

DRD

24.1%

US Metals and Mining

18.5%

US Market

Return vs Industry: DRD exceeded the US Metals and Mining industry which returned 24.1% over the past year.

Return vs Market: DRD exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

DRDIndustryMarket
7 Day-1.5%-0.3%-1.3%
30 Day2.8%3.4%5.3%
90 Day-23.3%8.2%7.5%
1 Year182.1%171.1%26.9%24.1%21.3%18.5%
3 Year288.5%262.1%13.2%5.7%42.4%32.9%
5 Year796.2%669.4%98.3%80.5%84.2%63.5%

Price Volatility Vs. Market

How volatile is DRDGOLD's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRD ($12.31) is trading below our estimate of fair value ($36.35)

Significantly Below Fair Value: DRD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DRD is poor value based on its PE Ratio (24.6x) compared to the US Metals and Mining industry average (19x).

PE vs Market: DRD is poor value based on its PE Ratio (24.6x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRD is overvalued based on its PB Ratio (4.3x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

29.2%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DRD's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if DRD's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if DRD's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if DRD's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DRD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DRDGOLD performed over the past 5 years?

49.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRD has high quality earnings.

Growing Profit Margin: DRD's current net profit margins (15.2%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: DRD's earnings have grown significantly by 49.6% per year over the past 5 years.

Accelerating Growth: DRD's earnings growth over the past year (688.2%) exceeds its 5-year average (49.6% per year).

Earnings vs Industry: DRD earnings growth over the past year (688.2%) exceeded the Metals and Mining industry -39.6%.


Return on Equity

High ROE: DRD's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is DRDGOLD's financial position?


Financial Position Analysis

Short Term Liabilities: DRD's short term assets (ZAR2.2B) exceed its short term liabilities (ZAR745.9M).

Long Term Liabilities: DRD's short term assets (ZAR2.2B) exceed its long term liabilities (ZAR889.1M).


Debt to Equity History and Analysis

Debt Level: DRD is debt free.

Reducing Debt: DRD has no debt compared to 5 years ago when its debt to equity ratio was 1.5%.

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


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRD's dividend (4.19%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: DRD's dividend (4.19%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 high payout ratio (103.1%), DRD's dividend payments are not 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?

6.0yrs

Average management tenure


CEO

Niel Pretorius (53 yo)

11.75yrs

Tenure

R12,926,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Niel's total compensation ($USD784.20K) is below average for companies of similar size in the US market ($USD2.85M).

Compensation vs Earnings: Niel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Pretorius
CEO & Executive Director11.75yrsR12.93m0.059%
ZAR 615.8k
Adriaan Davel
CFO & Executive Director5.75yrsR7.29m0.023%
ZAR 246.2k
Wilhelm Schoeman
Operations Director of Ergo Mining Operations Proprietary Limited6.25yrsR7.04mno data
Francois Bouwer
Group Financial Accountantno datano datano data
Kevin Kruger
Managing Director of Far West Gold Recoveries Proprietary Limited2.17yrsno datano data
Henry Gouws
Managing Director of Ergo Mining Operations Proprietary Limited9yrsno datano data
Elise Beukes
Company Secretary1yrno datano data
Leonie Marupen
Assistant Company Secretaryno datano datano data

6.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: DRD's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Pretorius
CEO & Executive Director11.75yrsR12.93m0.059%
ZAR 615.8k
Adriaan Davel
CFO & Executive Director5.75yrsR7.29m0.023%
ZAR 246.2k
Geoffrey Campbell
Independent Non-Executive Chairman15yrsR1.51m0.012%
ZAR 123.1k
Timothy Cumming
Non-Executive Director0.17yrno datano data
Jean Nel
Independent Non-Executive Director1.92yrsR377.00kno data
Edmund Jeneker
Lead Independent Non-Executive Director3.17yrsR916.00kno data
Thulo Moletsane
Chairman of ERGO Mining Operations (Proprietary) Limitedno datano datano data
Johan Holtzhausen
Independent Non-Executive Director6.5yrsR702.00kno data
Thoko Victoria Buyiswa Mnyango
Independent Non-Executive Director3.83yrsR690.00kno data
Kuby Lebina
Independent Non-Executive Director0.83yrR104.00kno data
Charmel Flemming
Independent Non-Executive Director0.17yrno datano data

3.5yrs

Average Tenure

54yo

Average Age

Experienced Board: DRD's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 24.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: DRDGOLD Limited
  • Ticker: DRD
  • Exchange: NYSE
  • Founded: 1895
  • Industry: Gold
  • Sector: Materials
  • Market Cap: US$1.053b
  • Shares outstanding: 85.51m
  • Website: https://www.drdgold.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DUBADB (Deutsche Boerse AG)YesSPON ADR EACH REP 10 ORD NPVDEEURJan 1975
DRDNYSE (New York Stock Exchange)YesSPON ADR EACH REP 10 ORD NPVUSUSDJan 1975
DRD NBMV (Bolsa Mexicana de Valores)YesSPON ADR EACH REP 10 ORD NPVMXMXNJan 1975
DRDG.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDDec 1996
DRDJSE (The Johannesburg Securities Exchange)Ordinary SharesZAZARDec 1996
DUB1DB (Deutsche Boerse AG)Ordinary SharesDEEURDec 1996

Biography

DRDGOLD Limited, a gold mining company, engages in surface gold tailings retreatment business in South Africa. The company’s activities include exploration, extraction, processing, and smelting. It recover ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:48
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.