WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPM - CA9628791027 - Common Stock
147.86 USD
+1.7 (+1.16%)
147.6 USD
-0.26 (-0.18%)
Taking everything into account, WPM scores 8 out of 10 in our fundamental rating. WPM was compared to 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 growing strongly while it is still valued neutral. This is a good combination! These ratings would make WPM suitable for growth and 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.
- WPM had positive earnings in each of the past 5 years.
- Each year in the past 5 years WPM had a positive operating cash flow.
1.2 Ratios
- WPM has a better Return On Assets (11.90%) than 91.56% of its industry peers.
- WPM's Return On Equity of 12.38% is amongst the best of the industry. WPM outperforms 81.17% of its industry peers.
- The Return On Invested Capital of WPM (12.78%) is better than 85.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WPM is below the industry average of 10.34%.
- 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
- WPM has a Profit Margin of 54.72%. This is amongst the best in the industry. WPM outperforms 96.75% of its industry peers.
- In the last couple of years the Profit Margin of WPM has grown nicely.
- With an excellent Operating Margin value of 63.50%, WPM belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
- WPM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.59%, WPM belongs to the top of the industry, outperforming 94.81% of the companies in the same industry.
- WPM's Gross Margin has improved in the last couple of years.
| 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.
- WPM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 123.38 indicates that WPM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 123.38, WPM belongs to the top of the industry, outperforming 93.51% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of WPM (0.01) is better than 98.05% of its industry peers.
- WPM has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.00, WPM belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 123.38 |
ROIC/WACC1.31
WACC9.76%
2.3 Liquidity
- A Current Ratio of 8.09 indicates that WPM has no problem at all paying its short term obligations.
- WPM's Current ratio of 8.09 is amongst the best of the industry. WPM outperforms 87.01% of its industry peers.
- 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.
- With an excellent Quick ratio value of 8.09, WPM belongs to the best 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.
- WPM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.22% yearly.
- The Revenue has grown by 50.33% in the past year. This is a very strong growth!
- The Revenue has been growing by 8.32% on average over the past years. This is quite good.
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
- Based on estimates for the next years, WPM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
- WPM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.31% yearly.
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
- Based on the Price/Earnings ratio of 66.01, the valuation of WPM can be described as expensive.
- Based on the Price/Earnings ratio, WPM is valued a bit cheaper than 60.39% of the companies in the same industry.
- WPM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 43.20, which means the current valuation is very expensive for WPM.
- WPM's Price/Forward Earnings is on the same level as the industry average.
- WPM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.01 | ||
| Fwd PE | 43.2 |
4.2 Price Multiples
- WPM's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WPM indicates a somewhat cheap valuation: WPM is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.5 | ||
| EV/EBITDA | 44.97 |
4.3 Compensation for Growth
- WPM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- WPM has an outstanding profitability rating, which may justify a higher PE ratio.
- WPM's earnings are expected to grow with 36.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)3.11
EPS Next 2Y52.79%
EPS Next 3Y36.82%
5. Dividend
5.1 Amount
- WPM has a yearly dividend return of 0.46%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.02, WPM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, WPM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
- On average, the dividend of WPM grows each year by 16.13%, 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)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.
- The dividend of WPM is growing, but the earnings are growing slower. 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 66.01 and the Price/Book (PB) ratio is 8.3.
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.