WHEATON PRECIOUS METALS CORP (WPM.CA) Stock Fundamental Analysis
TSX:WPM - Toronto Stock Exchange - CA9628791027 - Common Stock
We assign a fundamental rating of 7 out of 10 to WPM. WPM was compared to 825 industry peers in the Metals & Mining industry. While WPM has a great profitability rating, there are some minor concerns on its financial health. WPM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WPM was profitable.
In the past year WPM had a positive cash flow from operations.
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
WPM has a better Return On Assets (8.25%) than 92.87% of its industry peers.
With an excellent Return On Equity value of 8.39%, WPM belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
The Return On Invested Capital of WPM (6.48%) is better than 93.67% 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 11.88%.
The 3 year average ROIC (5.82%) for WPM is below the current ROIC(6.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 8.39% | ||
| ROIC | 6.48% |
ROA(3y)9.84%
ROA(5y)7.89%
ROE(3y)9.91%
ROE(5y)8.05%
ROIC(3y)5.82%
ROIC(5y)5.43%
1.3 Margins
Looking at the Profit Margin, with a value of 50.05%, WPM belongs to the top of the industry, outperforming 98.65% of the companies in the same industry.
In the last couple of years the Profit Margin of WPM has remained more or less at the same level.
Looking at the Operating Margin, with a value of 54.40%, WPM belongs to the top of the industry, outperforming 99.33% of the companies in the same industry.
WPM's Operating Margin has improved in the last couple of years.
WPM's Gross Margin of 60.15% is amongst the best of the industry. WPM outperforms 97.71% of its industry peers.
In the last couple of years the Gross Margin of WPM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.4% | ||
| PM (TTM) | 50.05% | ||
| GM | 60.15% |
OM growth 3Y1.59%
OM growth 5Y10.08%
PM growth 3Y4.53%
PM growth 5Y-0.33%
GM growth 3Y1.85%
GM growth 5Y8.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WPM is destroying value.
The number of shares outstanding for WPM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WPM has more shares outstanding
The debt/assets ratio for WPM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 126.10 indicates that WPM is not in any danger for bankruptcy at the moment.
WPM has a Altman-Z score of 126.10. This is amongst the best in the industry. WPM outperforms 94.48% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
WPM has a Debt to Equity ratio of 0.00. This is comparable to the rest of the industry: WPM outperforms 54.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 126.1 |
ROIC/WACC0.64
WACC10.1%
2.3 Liquidity
WPM has a Current Ratio of 25.71. This indicates that WPM is financially healthy and has no problem in meeting its short term obligations.
WPM has a Current ratio of 25.71. This is amongst the best in the industry. WPM outperforms 93.54% of its industry peers.
A Quick Ratio of 25.71 indicates that WPM has no problem at all paying its short term obligations.
WPM's Quick ratio of 25.71 is amongst the best of the industry. WPM outperforms 93.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 25.71 | ||
| Quick Ratio | 25.71 |
3. Growth
3.1 Past
WPM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.40%, which is quite impressive.
The Earnings Per Share has been growing by 19.63% on average over the past years. This is quite good.
The Revenue has grown by 29.72% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 5.06% on average over the past years.
EPS 1Y (TTM)33.4%
EPS 3Y2.22%
EPS 5Y19.63%
EPS Q2Q%25.75%
Revenue 1Y (TTM)29.72%
Revenue growth 3Y-2.5%
Revenue growth 5Y5.06%
Sales Q2Q%38.15%
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 9.22% yearly.
Based on estimates for the next years, WPM will show a quite strong growth in Revenue. The Revenue will grow by 11.83% on average per year.
EPS Next Y22.33%
EPS Next 2Y22.8%
EPS Next 3Y15.8%
EPS Next 5Y9.22%
Revenue Next Year27.17%
Revenue Next 2Y25.88%
Revenue Next 3Y16.87%
Revenue Next 5Y11.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 41.56 indicates a quite expensive valuation of WPM.
86.94% 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 27.96. WPM is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 32.63, the valuation of WPM can be described as expensive.
86.27% of the companies in the same industry are more expensive than WPM, based on the Price/Forward Earnings ratio.
WPM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.56 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
WPM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WPM is cheaper than 87.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WPM has an outstanding profitability rating, which may justify a higher PE ratio.
WPM's earnings are expected to grow with 15.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)2.12
EPS Next 2Y22.8%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, WPM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.30, WPM pays a better dividend. On top of this WPM pays more dividend than 95.69% of the companies listed in the same industry.
With a Dividend Yield of 0.99, WPM pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of WPM grows each year by 14.34%, which is quite nice.
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)14.34%
Div Incr Years1
Div Non Decr Years9
5.3 Sustainability
WPM pays out 45.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
WPM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.31%
EPS Next 2Y22.8%
EPS Next 3Y15.8%
WHEATON PRECIOUS METALS CORP
TSX:WPM (1/17/2025, 7:00:00 PM)
83.53
+0.78 (+0.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners69.71%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap37.90B
Analysts82.35
Price Target107.13 (28.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.59
Dividend Growth(5Y)14.34%
DP45.31%
Div Incr Years1
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.92%
Min EPS beat(2)-1.83%
Max EPS beat(2)7.68%
EPS beat(4)3
Avg EPS beat(4)8.94%
Min EPS beat(4)-1.83%
Max EPS beat(4)20.35%
EPS beat(8)5
Avg EPS beat(8)4.36%
EPS beat(12)7
Avg EPS beat(12)2.23%
EPS beat(16)7
Avg EPS beat(16)0.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.66%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-2.85%
Revenue beat(4)2
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)-2.48%
Revenue beat(12)5
Avg Revenue beat(12)-2.28%
Revenue beat(16)5
Avg Revenue beat(16)-3.46%
PT rev (1m)2.18%
PT rev (3m)17.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.44%
EPS NY rev (1m)0%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)13.11%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.56 | ||
| Fwd PE | 32.63 | ||
| P/S | 21.56 | ||
| P/FCF | N/A | ||
| P/OCF | 27.63 | ||
| P/B | 3.62 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 28.08 |
EPS(TTM)2.01
EY2.41%
EPS(NY)2.56
Fwd EY3.06%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)3.02
OCFY3.62%
SpS3.87
BVpS23.1
TBVpS23.09
PEG (NY)1.86
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 8.39% | ||
| ROCE | 9% | ||
| ROIC | 6.48% | ||
| ROICexc | 7.16% | ||
| ROICexgc | 7.16% | ||
| OM | 54.4% | ||
| PM (TTM) | 50.05% | ||
| GM | 60.15% | ||
| FCFM | N/A |
ROA(3y)9.84%
ROA(5y)7.89%
ROE(3y)9.91%
ROE(5y)8.05%
ROIC(3y)5.82%
ROIC(5y)5.43%
ROICexc(3y)6.26%
ROICexc(5y)5.75%
ROICexgc(3y)6.26%
ROICexgc(5y)5.75%
ROCE(3y)8.08%
ROCE(5y)7.54%
ROICexcg growth 3Y-4.8%
ROICexcg growth 5Y15.31%
ROICexc growth 3Y-4.8%
ROICexc growth 5Y15.31%
OM growth 3Y1.59%
OM growth 5Y10.08%
PM growth 3Y4.53%
PM growth 5Y-0.33%
GM growth 3Y1.85%
GM growth 5Y8.66%
F-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 389.09% | ||
| Cap/Sales | 79.25% | ||
| Interest Coverage | 2253.14 | ||
| Cash Conversion | 104.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 25.71 | ||
| Quick Ratio | 25.71 | ||
| Altman-Z | 126.1 |
F-Score7
WACC10.1%
ROIC/WACC0.64
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)79.76%
Profit Quality(5y)194.52%
High Growth Momentum
Growth
EPS 1Y (TTM)33.4%
EPS 3Y2.22%
EPS 5Y19.63%
EPS Q2Q%25.75%
EPS Next Y22.33%
EPS Next 2Y22.8%
EPS Next 3Y15.8%
EPS Next 5Y9.22%
Revenue 1Y (TTM)29.72%
Revenue growth 3Y-2.5%
Revenue growth 5Y5.06%
Sales Q2Q%38.15%
Revenue Next Year27.17%
Revenue Next 2Y25.88%
Revenue Next 3Y16.87%
Revenue Next 5Y11.83%
EBIT growth 1Y48.04%
EBIT growth 3Y-0.95%
EBIT growth 5Y15.64%
EBIT Next Year95.89%
EBIT Next 3Y35.88%
EBIT Next 5Y22.03%
FCF growth 1Y-104.12%
FCF growth 3Y-51.51%
FCF growth 5Y-28.81%
OCF growth 1Y23.95%
OCF growth 3Y-0.64%
OCF growth 5Y9.48%