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%)
Overall WPM gets a fundamental rating of 8 out of 10. We evaluated WPM 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. WPM is growing strongly while it also seems undervalued. This is an interesting combination 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.
- In the past year WPM had a positive cash flow from operations.
- In the past 5 years WPM has always been profitable.
- WPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WPM has a Return On Assets of 11.90%. This is amongst the best in the industry. WPM outperforms 94.15% of its industry peers.
- The Return On Equity of WPM (12.38%) is better than 91.95% of its industry peers.
- WPM's Return On Invested Capital of 10.12% is amongst the best of the industry. WPM outperforms 94.15% of its industry peers.
- WPM had an Average Return On Invested Capital over the past 3 years of 5.89%. This 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
- WPM has a better Profit Margin (54.72%) than 98.41% of its industry peers.
- WPM's Profit Margin has improved in the last couple of years.
- WPM has a better Operating Margin (63.50%) than 99.39% of its industry peers.
- WPM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.59%, WPM belongs to the top of the industry, outperforming 97.93% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WPM is still 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.
- Compared to 1 year ago, WPM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 122.83 indicates that WPM is not in any danger for bankruptcy at the moment.
- WPM has a better Altman-Z score (122.83) 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 has a Debt to FCF ratio of 0.01. This is amongst the best in 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 | 122.83 |
ROIC/WACC1.04
WACC9.76%
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 82.44% of its industry peers.
- A Quick Ratio of 8.09 indicates that WPM has no problem at all paying its short term obligations.
- The Quick ratio of WPM (8.09) is better than 82.56% of its industry peers.
| 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.
- WPM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.22% yearly.
- The Revenue has grown by 50.33% in the past year. This is a very strong growth!
- 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
- Based on estimates for the next years, WPM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
- 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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- WPM is valuated quite expensively with a Price/Earnings ratio of 65.02.
- Compared to the rest of the industry, the Price/Earnings ratio of WPM indicates a rather cheap valuation: WPM is cheaper than 87.20% of the companies listed 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.
- A Price/Forward Earnings ratio of 42.52 indicates a quite expensive valuation of WPM.
- Based on the Price/Forward Earnings ratio, WPM is valued cheaper than 87.44% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of WPM to the average of the S&P500 Index (25.98), we can say WPM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.02 | ||
| Fwd PE | 42.52 |
4.2 Price Multiples
- 90.00% 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 cheaper than 91.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.89 | ||
| EV/EBITDA | 44.76 |
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)0.76
PEG (5Y)3.06
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.
- WPM's Dividend Yield is rather good when compared to the industry average which is at 0.56. WPM pays more dividend than 95.61% of the companies in the same industry.
- With a Dividend Yield of 0.46, WPM pays less dividend than the S&P500 average, which is at 1.81.
| 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.
- 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 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.