DRDGOLD Limited (DRD)
Valuation Overview•Is DRDGOLD Limited Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
High-quality fundamentals with a strong composite quality score of 83/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street is highly bullish, projecting significant upside. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
DRD demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($1.3B) and minimal debt risk.
The company is driving exceptional top-line expansion (15.5% 3Y CAGR) paired with highly explosive earnings growth (25.5% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 25.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $4.8B | +26.3% | +15.5% | +13.5% | +14.1% | |
| EBITDA | $2.5B | — | -5.3% | — | — | |
| Net Income | $1.8B | +68.8% | +25.9% | — | +41.9% | |
| EPS (Diluted) | $211.90 | +68.2% | +25.5% | -20.4% | +4.1% | |
| Free Cash Flow | $626.6M | +210.1% | +11.2% | +5.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 40.3% | 32.5% | 32.0% | 21.3% |
| Operating Margin | 25.1% | 21.1% | 24.7% | 15.6% |
| Net Margin | 30.2% | 24.4% | 24.5% | 14.4% |
| FCF Margin | 6.8% | 2.3% | 9.4% | 8.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | — | $0.14 | — | ||
| Q3'25 | — | $0.83 | — | ||
| Q1'25 | — | $0.59 | — | ||
| Q3'24 | — | $0.47 | — | ||
| Q2'24 | — | $0.02 | — | ||
| Q1'24 | — | $0.19 | — | ||
| Q4'23 | — | $0.02 | — | ||
| Q3'23 | — | $0.02 | — |
Total return is +76.7% (1Y), outperforming the benchmark by +51.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -18.6% | -28.0% | — |
| 1Y | +76.7% | +51.7% | +3.7% |
| 3YCAGR | +31.2% | +11.8% | +11.1% |
| 5YCAGR | +19.9% | +6.8% | +18.9% |
| 10YCAGR | +17.6% | +4.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about DRDGOLD Limited (DRD) valuation, health, and returns.
DRDGOLD Limited is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -18.8% downside from DCF intrinsic value of $19.80)
DRDGOLD Limited has multiple valuation anchors: DCF Intrinsic Value: $19.80 | Peer Relative Fair Value: $2256.14 | Wall Street Analyst Target: $46.50 (implying +90.8% upside). A convergence of these signals offers higher conviction.
DRDGOLD Limited displays excellent financial health with a composite quality score of 83/100, supported by a Altman Z-Score of 1.8 (grey zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 9.8%.
DRDGOLD Limited pays a 1.2% dividend yield, covered by a 19% payout ratio with 2 years of growth, supplemented by a 0.0% buyback yield.
DRDGOLD Limited's current growth trajectory is Accelerating. The company achieved +26.3% 1Y revenue growth and +68.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +15.5%.
Wall Street consensus is Buy based on 5 analysts. The consensus price target represents a +90.8% change from current levels.
Investment risks for DRDGOLD Limited include: -44.1% 1-year max drawdown, high beta (1.54x market volatility). Volatility risk is characterized by a beta of 1.54x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.