Drdgold (DRD) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 1.16%
• Average Volume (3M): 376.42K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.37
• Revenue Growth: 22.63%
• EPS Growth: 28.96%
• Country: US
• Employees: 893
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): 0.06
• Shares Outstanding: 86,458,870
• 10 Day Avg. Volume: 483,096
• 30 Day Avg. Volume: 376,421
• PEG Ratio: 0.99
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.25
• Price Target Upside: 13.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $16.00 ▲(11.73%Upside)

Drdgold's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth, profitability, and a solid balance sheet. Technical indicators show mixed signals, with longer-term trends being positive, while short-term indicators suggest caution. The company's valuation is fair, making it an attractive option for investors.

Positive Factors

Cost 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.

Production Guidance

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

Revenue Growth

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

Negative Factors

Inflationary Pressures

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, 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. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited operates as a subsidiary of Sibanye Gold Limited.

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 shows strong revenue growth and profitability with a solid balance sheet characterized by low leverage. However, the recent negative free cash flow due to high capital expenditures could pose a risk if not managed effectively.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
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
	EBIT
2.01B	1.61B	1.42B	1.31B	1.82B	937.90M
	EBITDA
2.48B	2.15B	1.96B	1.78B	2.07B	1.26B
	Net Income Common Stockholders
1.22B	1.33B	1.28B	1.12B	1.44B	635.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.39B	521.50M	2.46B	2.51B	2.18B	1.72B
	Total Assets
7.27B	9.45B	8.15B	7.08B	6.35B	5.68B
	Total Debt
24.10M	29.20M	39.70M	52.30M	54.80M	47.10M
	Net Debt
-2.37B	-492.30M	-2.42B	-2.46B	-2.13B	-1.67B
	Total Liabilities
1.64B	2.56B	1.88B	1.64B	1.53B	1.64B
	Stockholders Equity
5.63B	6.89B	6.27B	5.44B	4.82B	4.04B
Cash Flow		Free Cash Flow
-677.50M	-1.14B	510.40M	913.70M	1.18B	947.80M
	Operating Cash Flow
1.43B	1.85B	1.66B	1.50B	1.57B	1.13B
	Investing Cash Flow
-2.15B	-3.04B	-1.19B	-626.20M	-446.60M	-202.50M
	Financing Cash Flow
-447.95M	-750.70M	-532.20M	-533.00M	-653.50M	509.20M

Drdgold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.32 is below the 20-day moving average (MA) of 14.89, below the 50-day MA of 15.00, and above the 200-day MA of 11.56, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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	71 Outperform	$1.19B	12.79	24.89%	1.16%	22.63%	28.96%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
USAU		$182.59M	―	-92.39%	―	―	―
CMCL	81 Outperform	$351.36M	13.74	11.16%	2.98%	29.36%	707.68%
IDR	64 Neutral	$185.40M	22.48	26.95%	―	67.42%	137.01%
CTGO	50 Neutral	$245.04M	―	-9999.00%	―	―	18.69%
DC		$425.18M	―	-25.54%	―	―	―