DRDGoldDRD -0.85%85 Return-on-Tangible-Equity is 31.05% as of Jun. 2025, which is 59% above its 10-year median of 19.53. GuruFocus rates DRD with a GF Score™ of 85/100 and a GF Value™ of $22.01 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,378 Metals & Mining companies, DRDGold ranks better than 91.34% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. DRDGold's annualized net income for the quarter that ended in Jun. 2025 was $142.8 Mil. DRDGold's average shareholder tangible equity for the quarter that ended in Jun. 2025 was $460.0 Mil. Therefore, DRDGold's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 was 31.05%.
The historical rank and industry rank for DRDGold's Return-on-Tangible-Equity or its related term are showing as below:
DRD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.51 Med: 19.53 Max: 32.5
Current: 28.69
During the past 13 years, DRDGold's highest Return-on-Tangible-Equity was 32.50%. The lowest was 0.51%. And the median was 19.53%.
DRD's Return-on-Tangible-Equity is ranked better than 91.34% of 2378
companies
in the Metals & Mining industry
Industry Median: -16.28
vs DRD: 28.69
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
DRDGold Return-on-Tangible-Equity Related Terms
DRDGold Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for DRDGold's Return-on-Tangible-Equity 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.
DRD vs NEM, AU, RGLD: Return-on-Tangible-Equity Comparison
For the Gold subindustry, DRDGold's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, DRDGold's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where DRDGold's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Jun. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.05% mean?
DRDGold (DRD) has a Return-on-Tangible-Equity of 31.05% as of Jun. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on DRDGold and its competitors. This is 59% above median its historical median of 19.53. Over the past decade, DRDGold's Return-on-Tangible-Equity has ranged from 0.51 to 32.50. According to the industry distribution chart, DRDGold ranks #206 out of 2378 companies in the Metals & Mining industry, placing it in the top 8.7%.
Is DRDGold's Return-on-Tangible-Equity too high?
DRDGold's current Return-on-Tangible-Equity of 31.05% is 59% above median its 10-year median of 19.53. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 32.50. Based on the distribution chart, DRDGold ranks #206 out of 2378 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 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DRDGold's Return-on-Tangible-Equity compare to NEM and AU?
According to the Metals & Mining industry distribution chart, DRDGold ranks #206 out of 2378 companies for Return-on-Tangible-Equity. This places DRDGold in the top 9% of its industry — outperforming the majority of peers. Historically, DRDGold's own Return-on-Tangible-Equity has ranged from 0.51 to 32.50 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on DRDGold and its competitors. DRDGold's current Return-on-Tangible-Equity is 31.05%, which is 59% above median its own 10-year median of 19.53. 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 (DRD) is currently considered Fairly Valued. The stock's GF Value™ is $22.01, compared to a current price of $21.12 — trading 4% below its estimated fair value. The current Return-on-Tangible-Equity is 31.05%, which is 59% above median its 10-year median of 19.53. DRDGold's overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For DRDGold (DRD), the current Return-on-Tangible-Equity is 31.05% 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 (DRD) Overvalued in 2026?
Based on GuruFocus' analysis, DRDGold stock appears to be undervalued.
The current stock price of $21.12 is trading 4% below its estimated GF Value™ of $22.01.
GuruFocus considers DRDGold to be Fairly Valued.
Key valuation signals for DRD:
Return-on-Tangible-Equity: 31.05% (59% above median its 10-year median of 19.53)
GF Value™: $22.01 vs. price of $21.12 (4% below fair value)
No single metric tells the full story. See the DRD 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.
85GF Score
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