DRDDRDGOLD Limited
Is the business good?
A genuinely good business: earnings fully cash-backed (1.4×) and elite returns on assets.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 33% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DRD?
DRDGOLD Limited keeps 51% of every revenue dollar as operating profit, against 40% for the median Gold name.
Operating margin · Gold median 40% · fiscal year to FY2026
- Cash conversion
- 1.37×
Cash conversion · 1.65× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.40%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 53%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 34% |
| FY2022 | 26% |
| FY2023 | 26% |
| FY2024 | 26% |
| FY2025 | 37% |
| FY2026 | 51% |
Details›
- Gross marginfiscal year to FY2026
- 53%
- Operating marginfiscal year to FY2026
- 51%
- Net marginfiscal year to FY2026
- 38%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $11.2B
- Free cash flow, trailing twelve months
- $2.14B
- Net income, trailing twelve months
- $4.26B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.