DRD (DRDGold) 5-Year ROIIC % : 24.11% (As of Jun. 2025)


DRD DRDGold Ltd DRD
85 GF Score
Price $21.90
GF Value $16.58
Valuation Significantly Overvalued
! 1 Warning Sign
View Full Analysis

What is DRDGold 5-Year ROIIC %?

DRDGold DRD +3.69% 85 5-Year ROIIC % is 24.11 as of Jun. 2025. GuruFocus rates DRD with a GF Score™ of 85/100 and a GF Value™ of $16.58 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,935 Metals & Mining companies, DRDGold ranks better than 81.19% on this metric.

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. DRDGold's 5-Year ROIIC % for the quarter that ended in Jun. 2025 was 24.11%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for DRDGold's 5-Year ROIIC % or its related term are showing as below:

DRD's 5-Year ROIIC % is ranked better than
81.19% of 1935 companies
in the Metals & Mining industry
Industry Median: -3.34 vs DRD: 24.11

DRDGold  (NYSE:DRD) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


DRDGold 5-Year ROIIC % Related Terms


DRDGold 5-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for DRDGold's 5-Year ROIIC % 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.

DRDGold 5-Year ROIIC % Chart

DRDGold Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 65.64 0.00 31.91 23.47 24.11

DRDGold Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Jun21 Jun22 Jun23 Dec23 Jun24 Dec24 Jun25
5-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.91 0.00 23.47 0.00 24.11

DRD vs NEM, AU, RGLD: 5-Year ROIIC % Comparison

For the Gold subindustry, DRDGold's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, DRDGold's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where DRDGold's 5-Year ROIIC % falls into.


DRD
85GF Score
DRDGold Ltd DRD
5-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

DRDGold 5-Year ROIIC % Calculation

DRDGold's 5-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 119.6806224 (Jun. 2025) - 35.4825926 (Jun. 2020) )/( 569.339 (Jun. 2025) - 222.976 (Jun. 2020) )
=84.1980298/346.363
=24.31%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 5-Year ROIIC % →
What does a 5-Year ROIIC % of 24.11 mean?
DRDGold (DRD) has a 5-Year ROIIC % of 24.11 as of Jun. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on DRDGold and its competitors. According to the industry distribution chart, DRDGold ranks #364 out of 1935 companies in the Metals & Mining industry, placing it in the top 18.8%.
Is DRDGold's 5-Year ROIIC % too high?
DRDGold's current 5-Year ROIIC % is 24.11. Based on the distribution chart, DRDGold ranks #364 out of 1935 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 Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DRDGold's 5-Year ROIIC % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, DRDGold ranks #364 out of 1935 companies for 5-Year ROIIC %. This places DRDGold in the top 19% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Metals & Mining company?
A good 5-Year ROIIC % depends on the Metals & Mining industry context. However, 5-Year ROIIC % 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on DRDGold and its competitors. DRDGold's current 5-Year ROIIC % is 24.11. 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 Significantly Overvalued. The stock's GF Value™ is $16.58, compared to a current price of $21.90 — trading 32.1% above its estimated fair value. The current 5-Year ROIIC % is 24.11. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For DRDGold (DRD), the current 5-Year ROIIC % is 24.11 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 overvalued. The current stock price of $21.90 is trading 32.1% above its estimated GF Value™ of $16.58. GuruFocus considers DRDGold to be Significantly Overvalued.

Key valuation signals for DRD:

  • 5-Year ROIIC %: 24.11
  • GF Value™: $16.58 vs. price of $21.90 (32.1% above fair value)
  • GF Score™: 85/100 with 1 warning sign

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.


DRDGold Business Description

Address Cnr 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

Get the complete analysis for DRD

5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$21.90
Price
$16.58
GF Value