Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South African gold explorer DRDGOLD (Nasdaq: DROOY) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at DRDGOLD's business and see what CAPS investors are saying about the stock right now.


Headquarters (Founded) Johannesburg (1895)
Market Cap $182.05 million
Industry Gold
Trailing-12-Month Revenue $332.6 million

CEO Daniel Pretorius

CFO Craig Barnes

Return on Equity (Average, Past 3 Years) 11.3%
Cash/Debt $33.4 million / $21.5 million
Dividend Yield 1.5%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 92.5% of the 214 members who have rated DRDGOLD so far believe the stock will outperform the S&P 500 going forward. These bulls include HollowMountain and AjOrellana.

Just last month , HollowMountain tapped DRDGOLD as a glittering bargain: "Incredible fundamentals and operations for a producing miner, I can't believe how cheaply this is trading."

In fact, DRDGOLD currently sports a cheapish price-to-cash flow of 4.8. That represents a discount to other gold stocks like AngloGold Ashanti (NYSE: AU) (15.6), Goldcorp (NYSE: GG) (24.2), and Yamana Gold (NYSE: AUY) (14.9).

CAPS member AjOrellana elaborates on the bull case:

This company is based out of South Africa. They specialize in mining of gold, as well as exploration, extraction, processing and smelting. The reason why the stock has positive future prospects is due to the industry in which it is in. Gold prices have been on a bull market for about 10 years. Given the nature of gold as "monetary" metal to hedge against a weakening dollar, gold prices from a fundamental stand point appear to continue on their upward trend. Therefore, gold miners will experience increased earnings due to the potential explosion of gold prices that may take place in the next few years.


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