DRDGOLD Ltd. Sponsored ADR
DRDGOLD Ltd. Sponsored ADR is a depositary receipt representing DRDGOLD Limited, a South African gold mining company focused on recovering gold from surface mine tailings. Through its core operations, the company processes historic waste material to produce gold and silver bullion while also providing related care and maintenance services. Its business is centered on surface retreatment activities, including processing and smelting, with operations organized around key segments such as Ergo and Far West Gold Recoveries. DRDGOLD also supports its mining footprint with renewable power generation, employee home loan services, and a training center. Headquartered in Johannesburg, South Africa, DRDGOLD Ltd. Sponsored ADR gives market participants exposure to a specialized precious metals business with a focus on tailings retreatment and resource recovery.
$24.37
-$1.54 (-5.94%)
Live
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.
Revenue up 78.8% YoY with margins expanding 25.6pp.
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.
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
Valuation & Multiples
Based on TTM earnings · Diluted shares
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%
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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.
Related stocks: Gold
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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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