WHEATON PRECIOUS METALS CORP (WPM.CA) Stock Fundamental Analysis
TSX:WPM - Toronto Stock Exchange - CA9628791027 - Common Stock - Currency: CAD
Overall WPM gets a fundamental rating of 7 out of 10. We evaluated WPM against 820 industry peers in the Metals & Mining industry. While WPM has a great profitability rating, there are some minor concerns on its financial health. WPM has a correct valuation and a medium growth rate.
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.
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
Looking at the Return On Assets, with a value of 8.25%, WPM belongs to the top of the industry, outperforming 92.70% of the companies in the same industry.
WPM has a better Return On Equity (8.39%) than 91.62% of its industry peers.
WPM has a Return On Invested Capital of 6.48%. This is amongst the best in the industry. WPM outperforms 93.51% of its industry peers.
WPM had an Average Return On Invested Capital over the past 3 years of 5.82%. This is significantly below the industry average of 11.94%.
The last Return On Invested Capital (6.48%) for WPM is above the 3 year average (5.82%), which is a sign of increasing profitability.
| 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
WPM's Profit Margin of 50.05% is amongst the best of the industry. WPM outperforms 98.65% of its industry peers.
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 99.19% of the companies in the same industry.
WPM's Operating Margin has improved in the last couple of years.
The Gross Margin of WPM (60.15%) is better than 97.43% 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
WPM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 148.45 indicates that WPM is not in any danger for bankruptcy at the moment.
WPM has a better Altman-Z score (148.45) than 95.41% 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 53.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 148.45 |
ROIC/WACC0.69
WACC9.37%
2.3 Liquidity
A Current Ratio of 25.71 indicates that WPM has no problem at all paying its short term obligations.
WPM has a Current ratio of 25.71. This is amongst the best in the industry. WPM outperforms 93.51% of its industry peers.
A Quick Ratio of 25.71 indicates that WPM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 25.71, WPM belongs to the best of the industry, outperforming 93.51% of the companies in the same industry.
| 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.
WPM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.63% yearly.
WPM shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.72%.
Measured over the past years, WPM shows a small growth in Revenue. The Revenue has been growing by 5.06% on average per year.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.77% yearly.
The Revenue is expected to grow by 8.72% on average over the next years. This is quite good.
EPS Next Y24.61%
EPS Next 2Y22.53%
EPS Next 3Y15.14%
EPS Next 5Y4.77%
Revenue Next Year28.15%
Revenue Next 2Y24.86%
Revenue Next 3Y17.09%
Revenue Next 5Y8.72%
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.
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
Based on the Price/Earnings ratio of 49.17, the valuation of WPM can be described as expensive.
WPM's Price/Earnings ratio is rather cheap when compared to the industry. WPM is cheaper than 86.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, WPM is valued quite expensively.
A Price/Forward Earnings ratio of 38.64 indicates a quite expensive valuation of WPM.
WPM's Price/Forward Earnings ratio is rather cheap when compared to the industry. WPM is cheaper than 86.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WPM to the average of the S&P500 Index (22.68), we can say WPM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.17 | ||
| Fwd PE | 38.64 |
4.2 Price Multiples
WPM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WPM is cheaper than 87.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 33.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 15.14% in the coming years.
PEG (NY)2
PEG (5Y)2.5
EPS Next 2Y22.53%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, WPM is not a good candidate for dividend investing.
WPM's Dividend Yield is rather good when compared to the industry average which is at 7.55. WPM pays more dividend than 95.14% of the companies in the same industry.
With a Dividend Yield of 0.83, WPM pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of WPM is nicely growing with an annual growth rate of 14.34%!
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)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.
The dividend of WPM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.31%
EPS Next 2Y22.53%
EPS Next 3Y15.14%
TSX:WPM (2/21/2025, 7:00:00 PM)
96.86
-2.26 (-2.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap43.94B
Analysts81.33
Price Target107.87 (11.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)0.69%
PT rev (3m)9.92%
EPS NQ rev (1m)1.7%
EPS NQ rev (3m)20.45%
EPS NY rev (1m)1.87%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)13.4%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.17 | ||
| Fwd PE | 38.64 | ||
| P/S | 25.42 | ||
| P/FCF | N/A | ||
| P/OCF | 32.57 | ||
| P/B | 4.26 | ||
| P/tB | 4.26 | ||
| EV/EBITDA | 33.24 |
EPS(TTM)1.97
EY2.03%
EPS(NY)2.51
Fwd EY2.59%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)2.97
OCFY3.07%
SpS3.81
BVpS22.72
TBVpS22.71
PEG (NY)2
PEG (5Y)2.5
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 | 148.45 |
F-Score7
WACC9.37%
ROIC/WACC0.69
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 Y24.61%
EPS Next 2Y22.53%
EPS Next 3Y15.14%
EPS Next 5Y4.77%
Revenue 1Y (TTM)29.72%
Revenue growth 3Y-2.5%
Revenue growth 5Y5.06%
Sales Q2Q%38.15%
Revenue Next Year28.15%
Revenue Next 2Y24.86%
Revenue Next 3Y17.09%
Revenue Next 5Y8.72%
EBIT growth 1Y48.04%
EBIT growth 3Y-0.95%
EBIT growth 5Y15.64%
EBIT Next Year95.89%
EBIT Next 3Y35.88%
EBIT Next 5Y17.57%
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%