Drdgold (DRD) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: 1.52%
• Average Volume (3M): 394.74K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.19
• Revenue Growth: 30.05%
• EPS Growth: 73.23%
• Country: US
• Employees: 893
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Gold
• EPS (TTM): 0.80
• Shares Outstanding: 86,458,870
• 10 Day Avg. Volume: 530,717
• 30 Day Avg. Volume: 394,739
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.49
• Enterprise Value/Ebitda: 0.44
• 1Y Price Target: $17.13
• Price Target Upside: -5.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $15.50 ▼(-14.22% Downside)

Drdgold's strong financial performance, characterized by revenue growth and solid balance sheet, is a key strength. Valuation is reasonable, and while technical analysis shows some bearish pressure, oversold indicators could hint at a rebound. The lack of recent earnings call data or significant corporate events leaves these factors unweighted.

Positive Factors

Financial Performance

DRD's 28% growth in revenue is primarily driven by the average gold price denominated in Rand increasing 26% YoY.

Guidance and Production

Company remains well-positioned to meet guidance, with gold production expected to trend toward the higher end of the guidance range.

Operational Efficiency

DRD successfully commissioned and integrated its solar plant and battery energy storage system into the national grid, which is ultimately expected to reduce costs and mitigate energy risks.

Negative Factors

Inflation and Economic Concerns

Revised estimates account for the ongoing inflationary environment, continued investment in safe-haven assets, and recessionary concerns.

Operating Costs

Inflation, higher security costs, and labor expenses increased operating costs at both Ergo and FWGR.

Drdgold Business Overview & Revenue Model

Company Description

DRDGOLD Limited is a South African gold producer, specializing in the recovery of gold from the retreatment of surface tailings. Operating primarily in the Gauteng province, the company focuses on sustainable and environmentally responsible mining practices. DRDGOLD's core activities include the acquisition, recovery, and processing of residual surface gold resources, utilizing advanced technologies and processes to extract gold from mine dumps, tailings dams, and open pit resources.

How the Company Makes Money

DRDGOLD makes money by extracting gold from surface tailings, which are the residual byproducts of previous mining operations. The company employs advanced metallurgical processes to recover gold from these tailings, which are then refined and sold in the global market. Revenue is primarily generated from the sale of gold produced from its operations. DRDGOLD's key revenue streams include the sale of gold bullion, which is priced according to the prevailing global gold market rates. The company's earnings are influenced by factors such as the efficiency of its recovery processes, the price of gold on the international market, and its ability to manage operational costs. Strategic partnerships and investments in technology play a significant role in optimizing recovery rates and reducing environmental impact, contributing to its overall profitability.

Drdgold Financial Statement Overview

Summary

Drdgold demonstrates strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, recent negative free cash flow due to high capital expenditures poses a potential risk if not managed properly.

Income Statement

Drdgold has demonstrated strong growth in its revenue over the years, with a noticeable increase from 2019 to 2024. The company has maintained healthy gross and net profit margins, with the most recent figures showing a gross profit margin of 29.0% and a net profit margin of 21.3% for 2024. The consistent growth in EBIT and EBITDA margins also highlights operational efficiency and management's ability to control costs.

Balance Sheet

The balance sheet of Drdgold reflects a robust financial structure with a low debt-to-equity ratio of 0.004 in 2024, indicating minimal leverage and financial risk. The company has been able to grow its stockholders' equity consistently, which is a positive sign for investors. The equity ratio stands at 72.9%, showcasing a strong equity base relative to total assets.

Cash Flow

Drdgold's cash flow statement shows a mixed picture. While operating cash flow remains strong relative to net income, the free cash flow has been negative in 2024 due to high capital expenditures. However, the operating cash flow to net income ratio remains healthy, suggesting that the company generates sufficient cash from operations.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	6.80B	6.24B	5.50B	5.12B	5.27B	4.18B
Gross Profit	2.20B	1.81B	1.59B	1.38B	1.88B	1.25B
EBITDA	2.48B	2.15B	1.96B	1.78B	2.07B	1.26B
Net Income	1.22B	1.33B	1.28B	1.12B	1.44B	635.00M
Balance Sheet
Total Assets	10.32B	9.45B	8.15B	7.08B	6.35B	5.68B
Cash, Cash Equivalents and Short-Term Investments	661.20M	521.50M	2.46B	2.51B	2.18B	1.72B
Total Debt	22.20M	29.20M	39.70M	52.30M	54.80M	47.10M
Total Liabilities	2.64B	2.56B	1.88B	1.64B	1.53B	1.64B
Stockholders Equity	7.68B	6.89B	6.27B	5.44B	4.82B	4.04B
Cash Flow
Free Cash Flow	-634.60M	-1.14B	510.40M	913.70M	1.18B	947.80M
Operating Cash Flow	1.75B	1.85B	1.66B	1.50B	1.57B	1.13B
Investing Cash Flow	-2.42B	-3.04B	-1.19B	-626.20M	-446.60M	-202.50M
Financing Cash Flow	-361.90M	-750.70M	-532.20M	-533.00M	-653.50M	509.20M

Drdgold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 18.07 is above the 20-day moving average (MA) of 15.69, above the 50-day MA of 14.54, and above the 200-day MA of 12.76, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 70.58 is Negative, neither overbought nor oversold. The STOCH value of 92.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRD.

Drdgold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRD	72 Outperform	$1.57B	12.42	28.11%	1.52%	30.05%	73.23%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
USAU	―	$184.16M	―	-141.56%	―	―	―
CMCL	79 Outperform	$488.74M	12.99	15.51%	2.29%	28.06%	208.80%
IDR	70 Outperform	$384.83M	41.00	23.79%	―	59.64%	61.41%
CTGO	50 Neutral	$267.83M	―	-9999.00%	―	―	91.60%
DC	―	$468.47M	―	-23.93%	―	―	―