DRDGOLD Limited
DRDGOLD Limited Fundamental Analysis
DRDGOLD Limited (DRD) shows strong financial fundamentals with a PE ratio of 1.60, profit margin of 34.97%, and ROE of 31.67%. The company generates $88.7B in annual revenue with strong year-over-year growth of 26.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 100.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze DRD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDRD demonstrates superior asset utilization.
Valuation Score
ExcellentDRD trades at attractive valuation levels.
Growth Score
ExcellentDRD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDRD maintains a strong and stable balance sheet.
Profitability Score
ExcellentDRD achieves industry-leading margins.
Key Financial Metrics
Is DRD Expensive or Cheap?
P/E Ratio
DRD trades at 1.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DRD's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values DRDGOLD Limited at 0.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.75 times EBITDA. This signals the market has high growth expectations.
How Well Does DRD Make Money?
Net Profit Margin
For every $100 in sales, DRDGOLD Limited keeps $34.97 as profit after all expenses.
Operating Margin
Core operations generate 21.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.67 in profit for every $100 of shareholder equity.
ROA
DRDGOLD Limited generates $21.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DRDGOLD Limited generates strong operating cash flow of $44.20B, reflecting robust business health.
Free Cash Flow
DRDGOLD Limited generates strong free cash flow of $15.45B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $178.74 in free cash annually.
FCF Yield
DRD converts 3.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How DRD Stacks Against Its Sector Peers
| Metric | DRD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.60 | 27.41 | Better (Cheaper) |
| ROE | 31.67% | 859.00% | Weak |
| Net Margin | 34.97% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 3.01 | 4.80 | Strong Liquidity |
| ROA | 21.26% | -3590.00% (disorted) | Strong |
DRD outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DRDGOLD Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.37%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
219.63%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
181.47%
Industry Style: Cyclical, Commodity, Value
High Growth