DRDGoldDRDGF 89 Operating Margin % is 41.81% as of Jun. 2025, which is 81% above its 10-year median of 23.07. GuruFocus rates DRDGF with a GF Score™ of 89/100 and a GF Value™ of $2.52 (Fairly Valued). The stock has 1 warning sign investors should review. Among 841 Metals & Mining companies, DRDGold ranks better than 84.3% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. DRDGold's Operating Income for the
six
months ended in Jun. 2025 was $95.6 Mil. DRDGold's Revenue for the
six
months ended in Jun. 2025 was $228.7 Mil. Therefore, DRDGold's Operating Margin % for the quarter that ended in Jun. 2025 was 41.81%.
Good Sign:
DRDGold Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for DRDGold's Operating Margin % or its related term are showing as below:
DRDGF'
s Operating Margin % Range Over the Past 10 Years
Min: -1.28 Med: 23.07 Max: 37.02
Current: 37.02
DRDGF's Operating Margin % is ranked better than 84.3% of 841
companies
in the Metals & Mining industry
Industry Median: 5.72
vs DRDGF: 37.02
DRDGold's 5-Year Average Operating Margin % Growth Rate was 5.10% per year.
DRDGold's Operating Income for the
six
months ended in Jun. 2025 was $95.6 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2025 was $162.2 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
DRDGold Operating Margin % Related Terms
DRDGold Operating Margin % Historical Data
* Premium members only.
The historical data trend for DRDGold's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DRDGF vs NEM, AU, CDE: Operating Margin % Comparison
For the Gold subindustry, DRDGold's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DRDGold Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, DRDGold's Operating Margin % distribution charts can be found below:
* The bar in red indicates where DRDGold's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
DRDGold's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DRDGold (DRDGF) has a Operating Margin % of 41.81% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on DRDGold and its competitors. This is 81% above median its historical median of 23.07. According to the industry distribution chart, DRDGold ranks #132 out of 841 companies in the Metals & Mining industry, placing it in the top 15.7%.
Is DRDGold's Operating Margin % too high?
DRDGold's current Operating Margin % of 41.81% is 81% above median its 10-year median of 23.07. The Metals & Mining industry median Operating Margin % is 5.72. DRDGold's value of 41.81% is 630.9% above this industry median. Based on the distribution chart, DRDGold ranks #132 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, DRDGold has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DRDGold's Operating Margin % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, DRDGold ranks #132 out of 841 companies for Operating Margin %. This places DRDGold in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. DRDGold's value of 41.81% is 630.9% above this benchmark. While the company's 10-year median is 23.07 vs. the industry median of 5.72, DRDGold has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DRDGold's current Operating Margin % of 41.81% is 630.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on DRDGold and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DRDGold's current Operating Margin % is 41.81%, which is 81% above median its own 10-year median of 23.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DRDGold stock overvalued right now?
Based on GuruFocus' analysis, DRDGold (DRDGF) is currently considered Fairly Valued. The stock's GF Value™ is $2.52, compared to a current price of $2.51 — trading 0.4% below its estimated fair value. The current Operating Margin % is 41.81%, which is 81% above median its 10-year median of 23.07 and 630.9% above the Metals & Mining industry median of 5.72. DRDGold's overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For DRDGold (DRDGF), the current Operating Margin % is 41.81% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DRDGold (DRDGF) Overvalued in 2026?
Based on GuruFocus' analysis, DRDGold stock appears to be undervalued.
The current stock price of $2.51 is trading 0.4% below its estimated GF Value™ of $2.52.
GuruFocus considers DRDGold to be Fairly Valued.
Key valuation signals for DRDGF:
Operating Margin %: 41.81% (81% above median its 10-year median of 23.07)
GF Value™: $2.52 vs. price of $2.51 (0.4% below fair value)
Industry Position: 630.9% above the Metals & Mining median (#132 of 841)
No single metric tells the full story. See the DRDGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressCnr 14th Avenue and Hendrik Potgieter Road, Constantia Office Park, Cycad House, Building 17, Ground Floor, Weltevreden Park, Johannesburg, ZAF, 1709
DRDGold Ltd is a South African gold mining company engaged in surface gold tailings retreatment including exploration, extraction, processing, and smelting. Its reportable operating segments are; Ergo, FWGR, and Corporate office and other reconciling items. The Ergo is a surface gold retreatment operation that treats old slime dams and sand dumps to the south of Johannesburg's central business district as well as the East and Central Rand goldfields, and the FWGR which is a surface gold retreatment operation and treats old slime dams in the West Rand goldfields. The Ergo segment derives a vast majority of the company's revenue.
89GF Score
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