WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPM - CA9628791027 - Common Stock
154.22 USD
+4.84 (+3.24%)
WPM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 154 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, WPM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year WPM was profitable.
- WPM had a positive operating cash flow in the past year.
- Each year in the past 5 years WPM has been profitable.
- In the past 5 years WPM always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 11.90%, WPM belongs to the best of the industry, outperforming 91.56% of the companies in the same industry.
- WPM has a Return On Equity of 12.38%. This is amongst the best in the industry. WPM outperforms 81.17% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.78%, WPM belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- WPM had an Average Return On Invested Capital over the past 3 years of 7.44%. This is below the industry average of 10.32%.
- The last Return On Invested Capital (12.78%) for WPM is above the 3 year average (7.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 12.38% | ||
| ROIC | 12.78% |
ROA(3y)8.22%
ROA(5y)9.04%
ROE(3y)8.32%
ROE(5y)9.18%
ROIC(3y)7.44%
ROIC(5y)7.8%
1.3 Margins
- With an excellent Profit Margin value of 54.72%, WPM belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of WPM has grown nicely.
- WPM has a Operating Margin of 63.50%. This is amongst the best in the industry. WPM outperforms 97.40% of its industry peers.
- In the last couple of years the Operating Margin of WPM has grown nicely.
- With an excellent Gross Margin value of 68.59%, WPM belongs to the best of the industry, outperforming 94.81% 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
- WPM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, WPM has about the same amount of shares outstanding.
- The number of shares outstanding for WPM has been increased compared to 5 years ago.
- Compared to 1 year ago, WPM has an improved debt to assets ratio.
2.2 Solvency
- WPM has an Altman-Z score of 126.06. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
- WPM's Altman-Z score of 126.06 is amongst the best of the industry. WPM outperforms 94.16% of its industry peers.
- The Debt to FCF ratio of WPM is 0.01, which is an excellent value as it means it would take WPM, only 0.01 years of fcf income to pay off 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 98.05% of the companies in the same industry.
- WPM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of WPM (0.00) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 126.06 |
ROIC/WACC1.31
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.
- With an excellent Current ratio value of 8.09, WPM belongs to the best of the industry, outperforming 87.01% 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 87.01% 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.
- The Revenue has grown by 50.33% in the past year. This is a very strong growth!
- 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.
- 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
- 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
- The Price/Earnings ratio is 68.85, which means the current valuation is very expensive for WPM.
- Compared to the rest of the industry, the Price/Earnings ratio of WPM is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, WPM is valued quite expensively.
- WPM is valuated quite expensively with a Price/Forward Earnings ratio of 45.06.
- WPM's Price/Forward Earnings ratio is in line with the industry average.
- WPM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.85 | ||
| Fwd PE | 45.06 |
4.2 Price Multiples
- WPM's Enterprise Value to EBITDA is on the same level as the industry average.
- WPM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WPM is cheaper than 64.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.82 | ||
| EV/EBITDA | 45.98 |
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.
- 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 36.82% in the coming years.
PEG (NY)0.81
PEG (5Y)3.24
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.
- WPM's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.46, WPM pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- WPM has decreased its dividend recently.
Dividend Growth(5Y)16.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- WPM pays out 29.16% of its income as dividend. This is a 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 FAQ
What is the fundamental rating for WPM stock?
ChartMill assigns a fundamental rating of 8 / 10 to WPM.
Can you provide the valuation status for WHEATON PRECIOUS METALS CORP?
ChartMill assigns a valuation rating of 5 / 10 to WHEATON PRECIOUS METALS CORP (WPM). This can be considered as Fairly Valued.
Can you provide the profitability details for WHEATON PRECIOUS METALS CORP?
WHEATON PRECIOUS METALS CORP (WPM) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WHEATON PRECIOUS METALS CORP (WPM) stock?
The Price/Earnings (PE) ratio for WHEATON PRECIOUS METALS CORP (WPM) is 68.85 and the Price/Book (PB) ratio is 8.65.
Can you provide the expected EPS growth for WPM stock?
The Earnings per Share (EPS) of WHEATON PRECIOUS METALS CORP (WPM) is expected to grow by 85.01% in the next year.