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%)
We assign a fundamental rating of 8 out of 10 to WPM. WPM was compared to 820 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 is growing strongly while it also seems undervalued. This is an interesting 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.
- WPM had positive earnings in each of the past 5 years.
- WPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WPM (11.90%) is better than 94.25% of its industry peers.
- Looking at the Return On Equity, with a value of 12.38%, WPM belongs to the top of the industry, outperforming 91.92% of the companies in the same industry.
- WPM has a better Return On Invested Capital (10.12%) than 94.12% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WPM is significantly below the industry average of 12.04%.
- The last Return On Invested Capital (10.12%) for WPM is above the 3 year average (5.89%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 54.72%, WPM belongs to the top 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.
- Looking at the Operating Margin, with a value of 63.50%, WPM belongs to the top of the industry, outperforming 99.39% of the companies in the same industry.
- WPM's Operating Margin has improved in the last couple of years.
- WPM has a Gross Margin of 68.59%. This is amongst the best in the industry. WPM outperforms 97.92% of its industry peers.
- WPM's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 1 year ago, WPM has about the same amount of shares outstanding.
- Compared to 5 years ago, WPM has more shares outstanding
- Compared to 1 year ago, WPM has an improved debt to assets ratio.
2.2 Solvency
- WPM has an Altman-Z score of 122.83. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
- WPM's Altman-Z score of 122.83 is amongst the best of 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.
- Looking at the Debt to FCF ratio, with a value of 0.01, WPM belongs to the top of the industry, outperforming 97.43% of the companies in the same industry.
- A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.00, WPM is in line with its industry, outperforming 55.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 122.83 |
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.
- Looking at the Current ratio, with a value of 8.09, WPM belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
- 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%.
- WPM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.32% yearly.
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
- WPM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.55% yearly.
- Based on estimates for the next years, WPM will show a quite strong growth in Revenue. The Revenue will grow by 14.31% on average per year.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 65.02 indicates a quite expensive valuation of WPM.
- WPM's Price/Earnings ratio is rather cheap when compared to the industry. WPM is cheaper than 87.27% of the companies in the same industry.
- WPM is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- WPM is valuated quite expensively with a Price/Forward Earnings ratio of 42.52.
- Based on the Price/Forward Earnings ratio, WPM is valued cheaply inside the industry as 87.39% of the companies are valued more expensively.
- WPM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.02 | ||
| Fwd PE | 42.52 |
4.2 Price Multiples
- 89.96% of the companies in the same industry are more expensive than WPM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, WPM is valued cheaply inside the industry as 91.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.89 | ||
| EV/EBITDA | 44.76 |
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.
- WPM has an outstanding profitability rating, which 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)3.06
EPS Next 2Y52.79%
EPS Next 3Y36.82%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.46%, WPM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.56, WPM pays a better dividend. On top of this WPM pays more dividend than 95.59% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, WPM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
- On average, the dividend of WPM grows each year by 16.13%, which is quite nice.
- WPM has been paying a dividend for at least 10 years, so it has a reliable track record.
- As WPM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 65.02 and the Price/Book (PB) ratio is 8.16.
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.