WHEATON PRECIOUS METALS CORP (WPM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WPM - CA9628791027 - Common Stock
200.26 CAD
+2.01 (+1.01%)
Taking everything into account, WPM scores 8 out of 10 in our fundamental rating. WPM was compared to 817 industry peers in the Metals & Mining industry. WPM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WPM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make WPM suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- WPM had positive earnings in the past year.
- In the past year WPM had a positive cash flow from operations.
- Each year in the past 5 years WPM has been profitable.
- WPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WPM has a better Return On Assets (11.90%) than 94.25% of its industry peers.
- WPM has a Return On Equity of 12.38%. This is amongst the best in the industry. WPM outperforms 91.92% of its industry peers.
- WPM has a better Return On Invested Capital (10.12%) than 94.12% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WPM is significantly below the industry average of 11.97%.
- The 3 year average ROIC (5.89%) for WPM is below the current ROIC(10.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 12.38% | ||
| ROIC | 10.12% |
ROA(3y)8.22%
ROA(5y)9.04%
ROE(3y)8.32%
ROE(5y)9.18%
ROIC(3y)5.89%
ROIC(5y)6.17%
1.3 Margins
- With an excellent Profit Margin value of 54.72%, WPM belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of WPM has grown nicely.
- WPM has a Operating Margin of 63.50%. This is amongst the best in the industry. WPM outperforms 99.39% of its industry peers.
- In the last couple of years the Operating Margin of WPM has grown nicely.
- The Gross Margin of WPM (68.59%) is better than 97.92% of its industry peers.
- In the last couple of years the Gross Margin of WPM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.5% | ||
| PM (TTM) | 54.72% | ||
| GM | 68.59% |
OM growth 3Y4.51%
OM growth 5Y10.92%
PM growth 3Y-13.12%
PM growth 5Y32.74%
GM growth 3Y4.45%
GM growth 5Y9.24%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WPM is creating some value.
- The number of shares outstanding for WPM remains at a similar level compared to 1 year ago.
- WPM has more shares outstanding than it did 5 years ago.
- WPM has a better debt/assets ratio than last year.
2.2 Solvency
- WPM has an Altman-Z score of 121.17. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
- WPM has a Altman-Z score of 121.17. This is amongst the best in the industry. WPM outperforms 90.21% of its industry peers.
- WPM has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
- WPM has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. WPM outperforms 97.43% of its industry peers.
- WPM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- WPM has a Debt to Equity ratio (0.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 121.17 |
ROIC/WACC1.06
WACC9.59%
2.3 Liquidity
- WPM has a Current Ratio of 8.09. This indicates that WPM is financially healthy and has no problem in meeting its short term obligations.
- WPM has a better Current ratio (8.09) than 82.50% of its industry peers.
- WPM has a Quick Ratio of 8.09. This indicates that WPM is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 8.09, WPM belongs to the top of the industry, outperforming 82.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.09 | ||
| Quick Ratio | 8.09 |
3. Growth
3.1 Past
- WPM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.01%, which is quite impressive.
- Measured over the past years, WPM shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.22% on average per year.
- WPM shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.33%.
- Measured over the past years, WPM shows a quite strong growth in Revenue. The Revenue has been growing by 8.32% on average per year.
EPS 1Y (TTM)61.01%
EPS 3Y3.74%
EPS 5Y21.22%
EPS Q2Q%83.38%
Revenue 1Y (TTM)50.33%
Revenue growth 3Y2.25%
Revenue growth 5Y8.32%
Sales Q2Q%54.5%
3.2 Future
- The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
- The Revenue is expected to grow by 14.31% on average over the next years. This is quite good.
EPS Next Y85.01%
EPS Next 2Y52.79%
EPS Next 3Y36.82%
EPS Next 5Y15.55%
Revenue Next Year63.39%
Revenue Next 2Y41.67%
Revenue Next 3Y29.26%
Revenue Next 5Y14.31%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 64.81 indicates a quite expensive valuation of WPM.
- 87.27% of the companies in the same industry are more expensive than WPM, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WPM is valued quite expensively.
- With a Price/Forward Earnings ratio of 42.36, WPM can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WPM indicates a rather cheap valuation: WPM is cheaper than 87.39% of the companies listed in the same industry.
- WPM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.81 | ||
| Fwd PE | 42.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WPM is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
- 91.68% of the companies in the same industry are more expensive than WPM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.53 | ||
| EV/EBITDA | 44.14 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of WPM may justify a higher PE ratio.
- A more expensive valuation may be justified as WPM's earnings are expected to grow with 36.82% in the coming years.
PEG (NY)0.76
PEG (5Y)3.05
EPS Next 2Y52.79%
EPS Next 3Y36.82%
5. Dividend
5.1 Amount
- WPM has a yearly dividend return of 0.46%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.64, WPM pays a better dividend. On top of this WPM pays more dividend than 95.84% of the companies listed in the same industry.
- With a Dividend Yield of 0.46, WPM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
- The dividend of WPM is nicely growing with an annual growth rate of 16.13%!
- WPM has paid a dividend for at least 10 years, which is a reliable track record.
- WPM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.13%
Div Incr Years1
Div Non Decr Years9
5.3 Sustainability
- 29.16% of the earnings are spent on dividend by WPM. This is a low number and sustainable payout ratio.
- WPM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.16%
EPS Next 2Y52.79%
EPS Next 3Y36.82%
WHEATON PRECIOUS METALS CORP / WPM.CA FAQ
What is the fundamental rating for WPM stock?
ChartMill assigns a fundamental rating of 8 / 10 to WPM.CA.
Can you provide the valuation status for WHEATON PRECIOUS METALS CORP?
ChartMill assigns a valuation rating of 7 / 10 to WHEATON PRECIOUS METALS CORP (WPM.CA). This can be considered as Undervalued.
Can you provide the profitability details for WHEATON PRECIOUS METALS CORP?
WHEATON PRECIOUS METALS CORP (WPM.CA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WHEATON PRECIOUS METALS CORP (WPM.CA) stock?
The Price/Earnings (PE) ratio for WHEATON PRECIOUS METALS CORP (WPM.CA) is 64.81 and the Price/Book (PB) ratio is 8.13.
Can you provide the expected EPS growth for WPM stock?
The Earnings per Share (EPS) of WHEATON PRECIOUS METALS CORP (WPM.CA) is expected to grow by 85.01% in the next year.