Drdgold Limited (DRD)
NYSE:DRD
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Drdgold
(NYSE:DRD)
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Rating:73Outperform
Price Target:
$30.00
▼(-6.34% Downside)
Action:ReiteratedDate:01/21/26
The score is driven primarily by strong financial performance (profitability, growth, and very low leverage), supported by a clear bullish price trend. Offsetting factors are stretched technical momentum (RSI/Stochastics) and a relatively high P/E with a modest dividend yield.
Positive Factors
High margins and revenue growth
Sustained double-digit revenue growth and industry-leading gross and EBIT margins point to structurally efficient tailings retreatment operations. High margins provide durable earnings cushion versus cost shocks and support reinvestment and dividends over multiple years.
Negative Factors
Negative free cash flow growth and modest conversion
Despite strong operating profits, negative FCF growth and only ~36% conversion of net income to free cash flow indicate cyclical or investment-driven strain on cash conversion. Over time this can limit dividend resilience and constrain self-funded expansion if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and revenue growth
Sustained double-digit revenue growth and industry-leading gross and EBIT margins point to structurally efficient tailings retreatment operations. High margins provide durable earnings cushion versus cost shocks and support reinvestment and dividends over multiple years.
Read all positive factors
Drdgold (DRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.28B
Dividend Yield1.02%
Average Volume (3M)307.25K
Price to Earnings (P/E)0.6
Beta (1Y)0.45
Revenue Growth32.68%
EPS Growth91.90%
CountryUS
Employees893
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.14
Shares Outstanding86,739,770
10 Day Avg. Volume200,141
30 Day Avg. Volume307,253
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.30
Price to Sales (P/S)2.59
P/FCF Ratio16.25
Enterprise Value/Market Cap16.25
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit8.95
Enterprise Value/Ebitda8.45
Forecast
1Y Price Target
$46.50Price Target Upside45.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.81
Revenue Forecast (FY)$636.25M
Drdgold Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
DRDGOLD makes money primarily by recovering gold from surface tailings and selling the produced gold into the market. Its core revenue stream is gold sales: the company hydraulically re-mines or dredges old tailings material, pumps it to processin...
Drdgold Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.89B | 7.88B | 6.24B | 5.50B | 5.12B | 5.27B |
| Gross Profit | 4.14B | 3.13B | 1.81B | 1.59B | 1.38B | 1.88B |
| EBITDA | 4.38B | 3.38B | 1.86B | 1.96B | 1.78B | 2.07B |
| Net Income | 3.11B | 2.24B | 1.33B | 1.28B | 1.12B | 1.44B |
Balance Sheet | ||||||
| Total Assets | 14.63B | 12.25B | 9.45B | 8.15B | 7.08B | 6.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 1.31B | 521.50M | 2.46B | 2.51B | 2.18B |
| Total Debt | 21.48M | 17.40M | 29.20M | 39.70M | 52.30M | 54.80M |
| Total Liabilities | 3.88B | 3.36B | 2.56B | 1.88B | 1.64B | 1.53B |
| Stockholders Equity | 10.75B | 8.88B | 6.89B | 6.27B | 5.44B | 4.82B |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.26B | -1.14B | 510.40M | 913.70M | 1.18B |
| Operating Cash Flow | 4.43B | 3.51B | 1.85B | 1.66B | 1.50B | 1.57B |
| Investing Cash Flow | -2.76B | -2.28B | -3.04B | -1.19B | -626.20M | -446.60M |
| Financing Cash Flow | -611.40M | -443.10M | -750.70M | -532.20M | -533.00M | -653.50M |
Drdgold Technical Analysis
Positive
32.03
Price Trends
32.06
Negative
32.04
Negative
26.61
Positive
Market Momentum
0.10
Negative
55.42
Neutral
50.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRD, the sentiment is Positive. The current price of 32.03 is above the 20-day moving average (MA) of 29.77, below the 50-day MA of 32.06, and above the 200-day MA of 26.61, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRD.
Drdgold Risk Analysis
Drdgold disclosed 46 risk factors in its most recent earnings report. Drdgold reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Physical risks including extreme weather Q2, 2024
Drdgold Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $36.98B | 10.92 | 50.82% | 1.51% | 68.87% | 187.55% | |
73 Outperform | $2.28B | 0.61 | 32.58% | 1.02% | 32.68% | 91.90% | |
73 Outperform | $9.48B | 5.53 | 32.51% | 0.87% | 31.10% | 57.19% | |
69 Neutral | $436.78M | 9.25 | 22.79% | 2.06% | 46.26% | 194.68% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $8.08B | -34.86 | -12.94% | ― | 19.11% | 27.86% |
* Basic Materials Sector Average
DRD
Drdgold
27.16
13.36
96.81%
GFI
Gold Fields
42.48
21.82
105.60%
HMY
Harmony Gold Mining
15.77
1.18
8.11%
SBSW
Sibanye Stillwater
12.02
7.61
172.69%
CMCL
Caledonia Mining
22.90
10.44
83.76%
DC
Dakota Gold Corp
5.38
2.72
102.26%
Drdgold Corporate Events
DRDGOLD Doubles Earnings and Lifts Dividend on Strong Gold Price and Operational Resilience
Feb 18, 2026
DRDGOLD reported significantly stronger unaudited interim results for the six months to 31 December 2025, driven largely by a sharply higher rand gold price, even as gold production fell 9% to 2,337kg. Revenue rose 33% year-on-year to R5.1 billion...
DRDGOLD Flags Doubling of Interim Earnings on Strong Gold Price and Heavy Growth Spend
Feb 9, 2026
DRDGOLD reported that for the six months ended 31 December 2025 it expects earnings per share of between 216.9 cents and 228.2 cents, and headline earnings per share of between 217.5 cents and 228.7 cents, an increase of 93% to 103% year on year. ...
DRDGOLD Secures Five-Year Wage Deal at Ergo Operations
Feb 2, 2026
On 2 February 2026, DRDGOLD announced that it has concluded wage negotiations at its Ergo Mining operations with organised labour, ending a wage dispute that had prompted strike notices in December 2025. The company and the National Union of Minew...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.