WHEATON PRECIOUS METALS CORP (WPM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WPM - CA9628791027 - Common Stock
203.1 CAD
+2.84 (+1.42%)
WPM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. WPM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: WPM is growing strongly while it also seems undervalued. This makes WPM very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- WPM had positive earnings in the past year.
- WPM had a positive operating cash flow in the past year.
- WPM had positive earnings in each of the past 5 years.
- Each year in the past 5 years WPM had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of WPM (11.90%) is better than 94.15% of its industry peers.
- WPM's Return On Equity of 12.38% is amongst the best of the industry. WPM outperforms 91.95% of its industry peers.
- WPM has a better Return On Invested Capital (10.12%) than 94.15% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of WPM (54.72%) is better than 98.41% of its industry peers.
- In the last couple of years the Profit Margin of WPM has grown nicely.
- With an excellent Operating Margin value of 63.50%, WPM belongs to the best of the industry, outperforming 99.39% of the companies in the same industry.
- In the last couple of years the Operating Margin of WPM has grown nicely.
- WPM has a Gross Margin of 68.59%. This is amongst the best in the industry. WPM outperforms 97.93% 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.
- WPM has about the same amout of shares outstanding than it did 1 year ago.
- WPM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for WPM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 124.78 indicates that WPM is not in any danger for bankruptcy at the moment.
- WPM has a better Altman-Z score (124.78) than 90.24% 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's Debt to FCF ratio of 0.01 is amongst the best of the industry. WPM outperforms 97.32% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 124.78 |
ROIC/WACC1.04
WACC9.76%
2.3 Liquidity
- A Current Ratio of 8.09 indicates that WPM has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 8.09, WPM belongs to the best of the industry, outperforming 82.44% 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.
- WPM's Quick ratio of 8.09 is amongst the best of the industry. WPM outperforms 82.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.09 | ||
| Quick Ratio | 8.09 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 61.01% over the past year.
- WPM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.22% yearly.
- Looking at the last year, WPM shows a very strong growth in Revenue. 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
- The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
- WPM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.31% yearly.
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
- Based on the Price/Earnings ratio of 66.16, the valuation of WPM can be described as expensive.
- 87.20% of the companies in the same industry are more expensive than WPM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.87. WPM is valued rather expensively when compared to this.
- WPM is valuated quite expensively with a Price/Forward Earnings ratio of 43.28.
- Based on the Price/Forward Earnings ratio, WPM is valued cheaply inside the industry as 87.44% of the companies are valued more expensively.
- WPM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.16 | ||
| Fwd PE | 43.28 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPM indicates a rather cheap valuation: WPM is cheaper than 89.76% of the companies listed in the same industry.
- WPM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WPM is cheaper than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.67 | ||
| EV/EBITDA | 45.5 |
4.3 Compensation for Growth
- WPM's 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.
- WPM's earnings are expected to grow with 36.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)3.12
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 0.56, WPM pays a better dividend. On top of this WPM pays more dividend than 95.61% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 paid a dividend for at least 10 years, which is 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
- WPM pays out 29.16% of its income as dividend. This is a sustainable payout ratio.
- The dividend of WPM is growing, but the earnings are growing slower. 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 66.16 and the Price/Book (PB) ratio is 8.31.
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.