WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPM - CA9628791027 - Common Stock
146.16 USD
+2.46 (+1.71%)
146.9 USD
+0.74 (+0.51%)
Taking everything into account, WPM scores 8 out of 10 in our fundamental rating. WPM was compared to 156 industry peers in the Metals & Mining industry. WPM gets an excellent profitability rating and is at the same time showing great financial health properties. WPM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make WPM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- WPM had positive earnings in the past year.
- WPM had a positive operating cash flow in the past year.
- WPM had positive earnings in each of the past 5 years.
- WPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WPM (11.90%) is better than 91.67% of its industry peers.
- WPM's Return On Equity of 12.38% is amongst the best of the industry. WPM outperforms 81.41% 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 85.90% 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 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
- With an excellent Profit Margin value of 54.72%, WPM belongs to the best of the industry, outperforming 96.79% of the companies in the same industry.
- WPM's Profit Margin has improved in the last couple of years.
- WPM has a Operating Margin of 63.50%. This is amongst the best in the industry. WPM outperforms 97.44% of its industry peers.
- WPM's Operating Margin has improved in the last couple of years.
- WPM has a better Gross Margin (68.59%) than 94.87% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WPM is creating some value.
- Compared to 1 year ago, WPM has about the same amount of shares outstanding.
- Compared to 5 years ago, WPM has more shares outstanding
- Compared to 1 year ago, WPM has an improved debt to assets ratio.
2.2 Solvency
- WPM has an Altman-Z score of 121.33. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
- WPM's Altman-Z score of 121.33 is amongst the best of the industry. WPM outperforms 94.87% 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.
- WPM has a better Debt to FCF ratio (0.01) than 98.08% 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 82.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 121.33 |
ROIC/WACC1.33
WACC9.59%
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.
- The Current ratio of WPM (8.09) is better than 87.18% of its industry peers.
- A Quick Ratio of 8.09 indicates that WPM has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 8.09, WPM belongs to the best of the industry, outperforming 87.18% 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!
- 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.
- The Revenue is expected to grow by 14.31% on average over the next years. This is quite good.
EPS Next Y84.06%
EPS Next 2Y50.08%
EPS Next 3Y34.19%
EPS Next 5Y15.55%
Revenue Next Year63.39%
Revenue Next 2Y41.67%
Revenue Next 3Y29.26%
Revenue Next 5Y14.31%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 65.25, the valuation of WPM can be described as expensive.
- Based on the Price/Earnings ratio, WPM is valued a bit cheaper than the industry average as 60.90% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. WPM is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 44.27, the valuation of WPM can be described as expensive.
- WPM's Price/Forward Earnings is on the same level as the industry average.
- WPM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.25 | ||
| Fwd PE | 44.27 |
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 64.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.34 | ||
| EV/EBITDA | 44.2 |
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.
- The excellent profitability rating of WPM may justify a higher PE ratio.
- WPM's earnings are expected to grow with 34.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)3.07
EPS Next 2Y50.08%
EPS Next 3Y34.19%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.46%, WPM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.96, WPM pays a bit more dividend than its industry peers.
- 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
- On average, the dividend of WPM grows each year by 16.13%, which is quite nice.
- WPM has paid a dividend for at least 10 years, which is 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
- 29.16% of the earnings are spent on dividend by WPM. This is a low number and sustainable payout ratio.
- WPM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.16%
EPS Next 2Y50.08%
EPS Next 3Y34.19%
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 65.25 and the Price/Book (PB) ratio is 8.2.
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 84.06% in the next year.