WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
NYSE:WPM - New York Stock Exchange, Inc. - CA9628791027 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to WPM. WPM was compared to 150 industry peers in the Metals & Mining industry. While WPM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WPM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WPM was profitable.
WPM had a positive operating cash flow in the past year.
In the past 5 years WPM has always been profitable.
In the past 5 years WPM always reported a positive cash flow from operatings.
1.2 Ratios
WPM has a Return On Assets of 8.25%. This is amongst the best in the industry. WPM outperforms 85.31% of its industry peers.
WPM's Return On Equity of 8.39% is fine compared to the rest of the industry. WPM outperforms 76.22% of its industry peers.
With a decent Return On Invested Capital value of 7.11%, WPM is doing good in the industry, outperforming 78.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WPM is below the industry average of 8.75%.
The last Return On Invested Capital (7.11%) for WPM is above the 3 year average (6.38%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 50.05%, WPM belongs to the top of the industry, outperforming 98.60% 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.
WPM has a better Operating Margin (54.40%) than 97.20% of its industry peers.
In the last couple of years the Operating Margin of WPM has grown nicely.
WPM's Gross Margin of 60.15% is amongst the best of the industry. WPM outperforms 93.71% 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.
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 139.36 indicates that WPM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 139.36, WPM belongs to the top of the industry, outperforming 98.60% 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.
WPM has a better Debt to Equity ratio (0.00) than 85.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 139.36 |
ROIC/WACC0.73
WACC9.68%
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 95.80% of its industry peers.
A Quick Ratio of 25.71 indicates that WPM has no problem at all paying its short term obligations.
The Quick ratio of WPM (25.71) is better than 95.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 25.71 | ||
| Quick Ratio | 25.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.40% over the past year.
WPM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.63% yearly.
Looking at the last year, WPM shows a very strong growth in Revenue. The Revenue has grown by 29.72%.
WPM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.06% yearly.
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
The Earnings Per Share is expected to grow by 4.77% on average over the next years.
Based on estimates for the next years, WPM will show a quite strong growth in Revenue. The Revenue will grow by 8.72% on average per year.
EPS Next Y24.22%
EPS Next 2Y23.93%
EPS Next 3Y14.39%
EPS Next 5Y4.77%
Revenue Next Year27.07%
Revenue Next 2Y25.88%
Revenue Next 3Y16.87%
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
With a Price/Earnings ratio of 46.06, WPM can be considered very expensive at the moment.
WPM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.47, WPM is valued quite expensively.
With a Price/Forward Earnings ratio of 35.45, WPM can be considered very expensive at the moment.
WPM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 92.74. WPM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.06 | ||
| Fwd PE | 35.45 |
4.2 Price Multiples
WPM's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.15 |
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 14.39% in the coming years.
PEG (NY)1.9
PEG (5Y)2.35
EPS Next 2Y23.93%
EPS Next 3Y14.39%
5. Dividend
5.1 Amount
WPM has a yearly dividend return of 0.90%, which is pretty low.
WPM's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to an average S&P500 Dividend Yield of 2.28, WPM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of WPM grows each year by 14.34%, which is quite nice.
WPM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WPM decreased 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 2Y23.93%
EPS Next 3Y14.39%
WHEATON PRECIOUS METALS CORP
NYSE:WPM (2/4/2025, 8:16:19 PM)
After market: 64.02 0 (0%)64.02
+0.46 (+0.72%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners69.71%
Inst Owner Change0.26%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap29.04B
Analysts82.35
Price Target73.99 (15.57%)
Short Float %0.79%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)-0.69%
PT rev (3m)4.1%
EPS NQ rev (1m)2.17%
EPS NQ rev (3m)21%
EPS NY rev (1m)1.55%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)13.4%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.06 | ||
| Fwd PE | 35.45 | ||
| P/S | 23.85 | ||
| P/FCF | N/A | ||
| P/OCF | 30.56 | ||
| P/B | 4 | ||
| P/tB | 4 | ||
| EV/EBITDA | 31.15 |
EPS(TTM)1.39
EY2.17%
EPS(NY)1.81
Fwd EY2.82%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)2.09
OCFY3.27%
SpS2.68
BVpS16
TBVpS16
PEG (NY)1.9
PEG (5Y)2.35
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 | 139.36 |
F-Score7
WACC9.68%
ROIC/WACC0.73
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 Y24.22%
EPS Next 2Y23.93%
EPS Next 3Y14.39%
EPS Next 5Y4.77%
Revenue 1Y (TTM)29.72%
Revenue growth 3Y-2.5%
Revenue growth 5Y5.06%
Sales Q2Q%38.15%
Revenue Next Year27.07%
Revenue Next 2Y25.88%
Revenue Next 3Y16.87%
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%