Drdgold (DRD) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 1.48%
• Average Volume (3M): 527.56K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.47
• Revenue Growth: 22.63%
• EPS Growth: 28.96%
• Country: US
• Employees: 893
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Gold
• EPS (TTM): 0.06
• Shares Outstanding: 86,458,870
• 10 Day Avg. Volume: 397,361
• 30 Day Avg. Volume: 527,557
• PEG Ratio: -27.61
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.00
• 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: 11.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Drdgold shows strong financial health with robust revenue growth and a solid balance sheet. While the technical analysis indicates a bullish trend, caution is warranted due to overbought indicators. The valuation is fair, supporting a moderately positive outlook overall.

Positive Factors

Energy Initiatives

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.

Gold Pricing

Ongoing strength in gold pricing, especially when calculated in South African Rand, is expected to remain a strong tailwind aiding DRD’s financial performance.

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 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 exhibits strong financial performance with notable revenue growth and profitability. The income statement highlights efficiency, and the balance sheet shows a solid equity base with minimal leverage. Although cash flow is impacted by high capital expenditures, operating cash remains robust.

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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.24B	5.50B	5.12B	5.27B	4.18B
	Gross Profit
1.81B	1.59B	1.38B	1.88B	1.25B
	EBIT
1.61B	1.42B	1.31B	1.82B	937.90M
	EBITDA
2.15B	1.96B	1.78B	2.07B	1.26B
	Net Income Common Stockholders
1.33B	1.28B	1.12B	1.44B	635.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
521.50M	2.46B	2.51B	2.18B	1.72B
	Total Assets
9.45B	8.15B	7.08B	6.35B	5.68B
	Total Debt
29.20M	39.70M	52.30M	54.80M	47.10M
	Net Debt
-492.30M	-2.42B	-2.46B	-2.13B	-1.67B
	Total Liabilities
2.56B	1.88B	1.64B	1.53B	1.64B
	Stockholders Equity
6.89B	6.27B	5.44B	4.82B	4.04B
Cash Flow		Free Cash Flow
-1.14B	510.40M	913.70M	1.18B	947.80M
	Operating Cash Flow
1.85B	1.66B	1.50B	1.57B	1.13B
	Investing Cash Flow
-3.04B	-1.19B	-626.20M	-446.60M	-202.50M
	Financing Cash Flow
-750.70M	-532.20M	-533.00M	-653.50M	509.20M

Drdgold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.51 is below the 20-day moving average (MA) of 14.72, below the 50-day MA of 14.74, and above the 200-day MA of 11.06, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, 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
CMCL	78 Outperform	$295.21M	11.54	11.16%	3.66%	29.36%	707.68%
DRD	72 Outperform	$1.20B	13.02	24.89%	1.48%	22.63%	28.96%
IDR	61 Neutral	$177.07M	20.43	26.95%	―	67.42%	137.01%
CTGO	50 Neutral	$185.29M	―	-9999.00%	―	―	18.69%
Sector *	50 Neutral	$1.98B	-1.08	-21.29%	3.61%	1.96%	-30.59%