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 7 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 quite expensive at the moment. It does show a decent growth rate. This makes WPM very considerable for quality investing!
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.
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
WPM's Return On Assets of 8.00% is amongst the best of the industry. WPM outperforms 85.71% of its industry peers.
WPM has a better Return On Equity (8.29%) than 74.68% of its industry peers.
With an excellent Return On Invested Capital value of 10.26%, WPM belongs to the best of the industry, outperforming 86.36% 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 11.67%.
The last Return On Invested Capital (10.26%) for WPM is above the 3 year average (7.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 8.29% | ||
| ROIC | 10.26% |
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
WPM's Profit Margin of 42.45% is amongst the best of the industry. WPM outperforms 96.75% of its industry peers.
In the last couple of years the Profit Margin of WPM has grown nicely.
WPM has a better Operating Margin (59.12%) than 96.75% of its industry peers.
WPM's Operating Margin has improved in the last couple of years.
WPM has a better Gross Margin (65.15%) than 94.81% of its industry peers.
In the last couple of years the Gross Margin of WPM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.12% | ||
| PM (TTM) | 42.45% | ||
| GM | 65.15% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WPM is still 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.
The debt/assets ratio for WPM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 90.49 indicates that WPM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 90.49, WPM belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
WPM has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of 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 97.40% 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.
Looking at the Debt to Equity ratio, with a value of 0.00, WPM belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 90.49 |
ROIC/WACC1.3
WACC7.86%
2.3 Liquidity
A Current Ratio of 11.38 indicates that WPM has no problem at all paying its short term obligations.
The Current ratio of WPM (11.38) is better than 92.21% of its industry peers.
A Quick Ratio of 11.38 indicates that WPM has no problem at all paying its short term obligations.
The Quick ratio of WPM (11.38) is better than 92.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.38 | ||
| Quick Ratio | 11.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.88% over the past year.
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.
WPM shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.76%.
Measured over the past years, WPM shows a quite strong growth in Revenue. The Revenue has been growing by 8.32% on average per year.
EPS 1Y (TTM)26.88%
EPS 3Y3.74%
EPS 5Y21.22%
EPS Q2Q%52.91%
Revenue 1Y (TTM)32.76%
Revenue growth 3Y2.25%
Revenue growth 5Y8.32%
Sales Q2Q%58.49%
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 9.88% yearly.
Based on estimates for the next years, WPM will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y45.16%
EPS Next 2Y18.52%
EPS Next 3Y11.37%
EPS Next 5Y9.88%
Revenue Next Year37.46%
Revenue Next 2Y18.95%
Revenue Next 3Y14.49%
Revenue Next 5Y4.47%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 54.03 indicates a quite expensive valuation of WPM.
WPM's Price/Earnings is on the same level as the industry average.
WPM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 43.55 indicates a quite expensive valuation of WPM.
The rest of the industry has a similar Price/Forward Earnings ratio as WPM.
WPM is valuated expensively when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.03 | ||
| Fwd PE | 43.55 |
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.
Based on the Price/Free Cash Flow ratio, WPM is valued a bit cheaper than 67.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.43 | ||
| EV/EBITDA | 35.15 |
4.3 Compensation for Growth
WPM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WPM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)2.55
EPS Next 2Y18.52%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
WPM has a yearly dividend return of 0.67%, which is pretty low.
WPM's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.42, WPM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 45.07% 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.
DP45.07%
EPS Next 2Y18.52%
EPS Next 3Y11.37%
89.69
+0.31 (+0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.52%
Inst Owner Change0.21%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap40.70B
Analysts82.5
Price Target100.74 (12.32%)
Short Float %1.43%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.62
Dividend Growth(5Y)16.13%
DP45.07%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.1%
Min EPS beat(2)0.05%
Max EPS beat(2)6.14%
EPS beat(4)3
Avg EPS beat(4)3.01%
Min EPS beat(4)-1.83%
Max EPS beat(4)7.68%
EPS beat(8)7
Avg EPS beat(8)7.47%
EPS beat(12)8
Avg EPS beat(12)3.19%
EPS beat(16)9
Avg EPS beat(16)0.91%
Revenue beat(2)1
Avg Revenue beat(2)1.1%
Min Revenue beat(2)-4.5%
Max Revenue beat(2)6.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)6.71%
Revenue beat(8)4
Avg Revenue beat(8)-0.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.8%
Revenue beat(16)6
Avg Revenue beat(16)-2.64%
PT rev (1m)3.17%
PT rev (3m)28.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.73%
EPS NY rev (1m)0%
EPS NY rev (3m)11.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.03 | ||
| Fwd PE | 43.55 | ||
| P/S | 27.91 | ||
| P/FCF | 45.43 | ||
| P/OCF | 34.82 | ||
| P/B | 5.45 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 35.15 |
EPS(TTM)1.66
EY1.85%
EPS(NY)2.06
Fwd EY2.3%
FCF(TTM)1.97
FCFY2.2%
OCF(TTM)2.58
OCFY2.87%
SpS3.21
BVpS16.45
TBVpS16.45
PEG (NY)1.2
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 8.29% | ||
| ROCE | 11.28% | ||
| ROIC | 10.26% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 11.96% | ||
| OM | 59.12% | ||
| PM (TTM) | 42.45% | ||
| GM | 65.15% | ||
| FCFM | 61.44% |
ROA(3y)8.22%
ROA(5y)9.04%
ROE(3y)8.32%
ROE(5y)9.18%
ROIC(3y)7.44%
ROIC(5y)7.8%
ROICexc(3y)8.26%
ROICexc(5y)8.41%
ROICexgc(3y)8.26%
ROICexgc(5y)8.41%
ROCE(3y)8.19%
ROCE(5y)8.58%
ROICexcg growth 3Y3.88%
ROICexcg growth 5Y18.4%
ROICexc growth 3Y3.87%
ROICexc growth 5Y18.39%
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%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 104.51% | ||
| Cap/Sales | 18.73% | ||
| Interest Coverage | 2845.27 | ||
| Cash Conversion | 104.06% | ||
| Profit Quality | 144.72% | ||
| Current Ratio | 11.38 | ||
| Quick Ratio | 11.38 | ||
| Altman-Z | 90.49 |
F-Score6
WACC7.86%
ROIC/WACC1.3
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)67.6%
Profit Quality(5y)93.1%
High Growth Momentum
Growth
EPS 1Y (TTM)26.88%
EPS 3Y3.74%
EPS 5Y21.22%
EPS Q2Q%52.91%
EPS Next Y45.16%
EPS Next 2Y18.52%
EPS Next 3Y11.37%
EPS Next 5Y9.88%
Revenue 1Y (TTM)32.76%
Revenue growth 3Y2.25%
Revenue growth 5Y8.32%
Sales Q2Q%58.49%
Revenue Next Year37.46%
Revenue Next 2Y18.95%
Revenue Next 3Y14.49%
Revenue Next 5Y4.47%
EBIT growth 1Y52.61%
EBIT growth 3Y6.86%
EBIT growth 5Y20.15%
EBIT Next Year94.96%
EBIT Next 3Y28.98%
EBIT Next 5Y17.39%
FCF growth 1Y69.12%
FCF growth 3Y-22.11%
FCF growth 5Y-4.46%
OCF growth 1Y75%
OCF growth 3Y6.73%
OCF growth 5Y15.42%