WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
NYSE:WPM - New York Stock Exchange, Inc. - CA9628791027 - Common Stock - Currency: USD
WPM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 151 industry peers in the Metals & Mining industry. While WPM has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, WPM is valued expensive at the moment.
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.
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's Return On Assets of 8.25% is amongst the best of the industry. WPM outperforms 86.09% of its industry peers.
WPM has a Return On Equity of 8.39%. This is in the better half of the industry: WPM outperforms 73.51% of its industry peers.
With a decent Return On Invested Capital value of 7.11%, WPM is doing good in the industry, outperforming 75.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WPM is below the industry average of 8.54%.
The 3 year average ROIC (6.38%) for WPM is below the current ROIC(7.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 8.39% | ||
| ROIC | 7.11% |
ROA(3y)9.84%
ROA(5y)7.89%
ROE(3y)9.91%
ROE(5y)8.05%
ROIC(3y)6.38%
ROIC(5y)5.96%
1.3 Margins
With an excellent Profit Margin value of 50.05%, WPM belongs to the best of the industry, outperforming 98.01% 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.
With an excellent Operating Margin value of 54.40%, WPM belongs to the best of the industry, outperforming 97.35% of the companies in the same industry.
WPM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 60.15%, WPM belongs to the best of the industry, outperforming 93.38% 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 | 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
WPM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WPM remains at a similar level compared to 1 year ago.
The number of shares outstanding for WPM has been increased compared to 5 years ago.
WPM has a worse debt/assets ratio than last year.
2.2 Solvency
WPM has an Altman-Z score of 153.33. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
WPM has a better Altman-Z score (153.33) than 99.34% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
The Debt to Equity ratio of WPM (0.00) is better than 85.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 153.33 |
ROIC/WACC0.76
WACC9.39%
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's Current ratio of 25.71 is amongst the best of the industry. WPM outperforms 96.69% of its industry peers.
A Quick Ratio of 25.71 indicates that WPM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 25.71, WPM belongs to the top of the industry, outperforming 96.69% 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%.
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
Based on estimates for the next years, WPM will show a small growth in Earnings Per Share. The EPS will grow by 4.77% on average per year.
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 Year27.17%
Revenue Next 2Y26%
Revenue Next 3Y17.28%
Revenue Next 5Y8.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 50.71, WPM can be considered very expensive at the moment.
WPM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WPM to the average of the S&P500 Index (29.35), we can say WPM is valued expensively.
WPM is valuated quite expensively with a Price/Forward Earnings ratio of 39.92.
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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 39.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.37 |
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)2.06
PEG (5Y)2.58
EPS Next 2Y22.53%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, WPM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.23, WPM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, WPM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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.
WPM has decreased its dividend recently.
Dividend Growth(5Y)14.34%
Div Incr Years1
Div Non Decr Years1
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 2Y22.53%
EPS Next 3Y15.14%
70.49
+0.29 (+0.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change1.78%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap31.98B
Analysts81.18
Price Target74.82 (6.14%)
Short Float %0.9%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.59
Dividend Growth(5Y)14.34%
DP45.31%
Div Incr Years1
Div Non Decr Years1
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)1.13%
PT rev (3m)-0.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 39.92 | ||
| P/S | 26.26 | ||
| P/FCF | N/A | ||
| P/OCF | 33.65 | ||
| P/B | 4.4 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 34.37 |
EPS(TTM)1.39
EY1.97%
EPS(NY)1.77
Fwd EY2.5%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)2.09
OCFY2.97%
SpS2.68
BVpS16
TBVpS16
PEG (NY)2.06
PEG (5Y)2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 8.39% | ||
| ROCE | 9% | ||
| ROIC | 7.11% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 7.85% | ||
| 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)6.38%
ROIC(5y)5.96%
ROICexc(3y)6.86%
ROICexc(5y)6.3%
ROICexgc(3y)6.86%
ROICexgc(5y)6.3%
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 | 153.33 |
F-Score7
WACC9.39%
ROIC/WACC0.76
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 Year27.17%
Revenue Next 2Y26%
Revenue Next 3Y17.28%
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%