Intrinsiqq
DRDGOLD Ltd. Sponsored ADR logoDRDGOLD Ltd. Sponsored ADRDRD
$24.37-5.94%
DRDGOLD Ltd. Sponsored ADR logo

DRDGOLD Ltd. Sponsored ADR

DRD

$24.37

-$1.54 (-5.94%)

⊜ Compare
ProfitabilityStrong marginsGrowthAcceleratingCash FlowStrong conversionValuationAttractively priced
What stands out

Margins and capital returns are both well above average: 51.37% operating margin, ROIC at 32.50%. Consistent with durable pricing power, though that alone doesn't make it a buy.

What's changing

Revenue up 78.8% YoY with margins expanding 25.6pp.

What deserves caution

Even for strong businesses, today's 8x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.

Valuation context

8.1x earnings, 16.2x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

-3.3%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market CapZAR 34.66B
EPSZAR 49.41
P/E8.15
P/FCF16.17
EV/EBITDA5.14
FCF Yield6.2%
Div. Yield0.26%
Net Debt/FCF-1.3x
52-Week Range
$19.65$39.18

Profitability & Returns

Revenue (TTM)

ZAR 11.16B

▲ +78.8% YoY

Net Income (TTM)

ZAR 4.26B

▲ +220.3% YoY

Op. Margin

51.37%

▲ +25.6pp YoY

ROIC

32.50%

▲ +14.7pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

ZAR 2.14B

▲ +288.0% YoY

Op. Cash Flow (TTM)

ZAR 5.68B

▲ +207.6% YoY

Net Debt

-ZAR 2.76B

Net Cash Position

Cash & Equiv.

ZAR 2.77B

3Y CAGR: +29.7%

3Y CAGR: +32.9%

Continue Research

Is DRDGOLD Ltd. Sponsored ADR (DRD) overvalued?

At a P/E of 8.1 and a price-to-free-cash-flow of 16.2, DRDGOLD Ltd. Sponsored ADR (DRD) trades below a two-stage DCF intrinsic value of about ZAR 1,288.48 per share, so at ZAR 24.37 the stock looks undervalued (5,187.1% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, DRDGOLD Ltd. Sponsored ADR scores 95/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.3%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is DRDGOLD Ltd. Sponsored ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about ZAR 1,288.48 per share for DRD, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around ZAR 966.36. At today's ZAR 24.37, that puts the stock about 5,187.1% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is DRDGOLD Ltd. Sponsored ADR a high-quality business?+

DRDGOLD Ltd. Sponsored ADR scores 95 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 51.4% operating margin and a 32.5% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does DRDGOLD Ltd. Sponsored ADR (DRD) pay a dividend, and how much?+

Yes, DRDGOLD Ltd. Sponsored ADR pays a regular dividend of about ZAR 1.05 per share per year (typically in quarterly installments), a yield of roughly 0.3% at the current price. That is a payout ratio of about 2.1% of earnings, so the dividend is amply covered by earnings. DRDGOLD Ltd. Sponsored ADR has grown the dividend at roughly 41.8% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For DRD's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is DRDGOLD Ltd. Sponsored ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. DRD currently trades below its estimated intrinsic value and scores 95/100 on quality (high-quality). It also yields about 0.3%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.