DRDGOLD LTD-SPONSORED ADR (DRD) Stock Fundamental Analysis
NYSE:DRD - New York Stock Exchange, Inc. - US26152H3012 - ADR - Currency: USD
DRD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. DRD has an excellent profitability rating, but there are some minor concerns on its financial health. DRD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DRD was profitable.
In the past year DRD had a positive cash flow from operations.
Each year in the past 5 years DRD has been profitable.
DRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DRD has a Return On Assets of 14.06%. This is amongst the best in the industry. DRD outperforms 93.66% of its industry peers.
DRD's Return On Equity of 19.29% is amongst the best of the industry. DRD outperforms 90.85% of its industry peers.
DRD's Return On Invested Capital of 14.15% is amongst the best of the industry. DRD outperforms 95.07% of its industry peers.
DRD had an Average Return On Invested Capital over the past 3 years of 14.11%. This is significantly above the industry average of 8.68%.
The last Return On Invested Capital (14.15%) for DRD is above the 3 year average (14.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.06% | ||
| ROE | 19.29% | ||
| ROIC | 14.15% |
ROA(3y)15.22%
ROA(5y)15.9%
ROE(3y)20.12%
ROE(5y)21.19%
ROIC(3y)14.11%
ROIC(5y)15.97%
1.3 Margins
Looking at the Profit Margin, with a value of 21.29%, DRD belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
In the last couple of years the Profit Margin of DRD has grown nicely.
Looking at the Operating Margin, with a value of 25.84%, DRD belongs to the top of the industry, outperforming 83.80% of the companies in the same industry.
In the last couple of years the Operating Margin of DRD has grown nicely.
The Gross Margin of DRD (29.00%) is better than 69.01% of its industry peers.
DRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.84% | ||
| PM (TTM) | 21.29% | ||
| GM | 29% |
OM growth 3Y-9.2%
OM growth 5Y41.5%
PM growth 3Y-7.98%
PM growth 5Y49.6%
GM growth 3Y-6.69%
GM growth 5Y30.15%
2. Health
2.1 Basic Checks
DRD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DRD has about the same amout of shares outstanding than it did 1 year ago.
DRD has more shares outstanding than it did 5 years ago.
DRD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.55 indicates that DRD is not in any danger for bankruptcy at the moment.
DRD has a Altman-Z score of 6.55. This is in the better half of the industry: DRD outperforms 78.17% of its industry peers.
DRD has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, DRD belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.55 |
ROIC/WACC0.86
WACC16.42%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DRD should not have too much problems paying its short term obligations.
DRD has a worse Current ratio (1.57) than 70.42% of its industry peers.
DRD has a Quick Ratio of 1.08. This is a normal value and indicates that DRD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DRD (1.08) is worse than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
DRD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.72%.
The Earnings Per Share has been growing by 67.78% on average over the past years. This is a very strong growth
Looking at the last year, DRD shows a quite strong growth in Revenue. The Revenue has grown by 13.53% in the last year.
Measured over the past years, DRD shows a quite strong growth in Revenue. The Revenue has been growing by 17.70% on average per year.
EPS 1Y (TTM)3.72%
EPS 3Y-2.81%
EPS 5Y67.78%
EPS Q2Q%-0.42%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y5.8%
Revenue growth 5Y17.7%
Sales Q2Q%14.9%
3.2 Future
The Earnings Per Share is expected to grow by 29.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, DRD will show a quite strong growth in Revenue. The Revenue will grow by 9.49% on average per year.
EPS Next Y20.31%
EPS Next 2Y22.2%
EPS Next 3Y29.31%
EPS Next 5YN/A
Revenue Next Year20.51%
Revenue Next 2Y11.19%
Revenue Next 3Y9.49%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.63, DRD is valued correctly.
84.51% of the companies in the same industry are more expensive than DRD, based on the Price/Earnings ratio.
DRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.53.
A Price/Forward Earnings ratio of 11.39 indicates a reasonable valuation of DRD.
76.76% of the companies in the same industry are more expensive than DRD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.65. DRD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DRD has an outstanding profitability rating, which may justify a higher PE ratio.
DRD's earnings are expected to grow with 29.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)0.2
EPS Next 2Y22.2%
EPS Next 3Y29.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, DRD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, DRD pays a better dividend. On top of this DRD pays more dividend than 80.99% of the companies listed in the same industry.
DRD's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
DRD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DRD decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
55.07% of the earnings are spent on dividend by DRD. This is a bit on the high side, but may be sustainable.
DP55.07%
EPS Next 2Y22.2%
EPS Next 3Y29.31%
11.45
+0.38 (+3.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners14.5%
Inst Owner Change-96.75%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap986.42M
Analysts42.86
Price Target10.37 (-9.43%)
Short Float %3.86%
Short Ratio7.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP55.07%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.87%
PT rev (3m)25.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)11.45%
EPS NY rev (3m)11.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 11.39 | ||
| P/S | 2.9 | ||
| P/FCF | N/A | ||
| P/OCF | 9.81 | ||
| P/B | 2.63 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.84
EY7.34%
EPS(NY)1
Fwd EY8.78%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)1.17
OCFY10.19%
SpS3.95
BVpS4.36
TBVpS4.36
PEG (NY)0.67
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.06% | ||
| ROE | 19.29% | ||
| ROCE | 18.98% | ||
| ROIC | 14.15% | ||
| ROICexc | 15.07% | ||
| ROICexgc | 15.07% | ||
| OM | 25.84% | ||
| PM (TTM) | 21.29% | ||
| GM | 29% | ||
| FCFM | N/A |
ROA(3y)15.22%
ROA(5y)15.9%
ROE(3y)20.12%
ROE(5y)21.19%
ROIC(3y)14.11%
ROIC(5y)15.97%
ROICexc(3y)19.7%
ROICexc(5y)23.63%
ROICexgc(3y)19.7%
ROICexgc(5y)23.63%
ROCE(3y)18.93%
ROCE(5y)21.41%
ROICexcg growth 3Y-26.45%
ROICexcg growth 5Y39.34%
ROICexc growth 3Y-26.45%
ROICexc growth 5Y39.34%
OM growth 3Y-9.2%
OM growth 5Y41.5%
PM growth 3Y-7.98%
PM growth 5Y49.6%
GM growth 3Y-6.69%
GM growth 5Y30.15%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 47.85% | ||
| Interest Coverage | 358.33 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 6.55 |
F-Score5
WACC16.42%
ROIC/WACC0.86
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)26.7%
Cap/Sales(5y)18.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.72%
EPS 3Y-2.81%
EPS 5Y67.78%
EPS Q2Q%-0.42%
EPS Next Y20.31%
EPS Next 2Y22.2%
EPS Next 3Y29.31%
EPS Next 5YN/A
Revenue 1Y (TTM)13.53%
Revenue growth 3Y5.8%
Revenue growth 5Y17.7%
Sales Q2Q%14.9%
Revenue Next Year20.51%
Revenue Next 2Y11.19%
Revenue Next 3Y9.49%
Revenue Next 5YN/A
EBIT growth 1Y13.33%
EBIT growth 3Y-3.93%
EBIT growth 5Y66.55%
EBIT Next Year6.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-323.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.45%
OCF growth 3Y5.46%
OCF growth 5Y44.96%