WHEATON PRECIOUS METALS CORP (WPM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WPM - CA9628791027 - Common Stock
198.25 CAD
+7.92 (+4.16%)
WPM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 817 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making WPM a very profitable company, without any liquidiy or solvency issues. WPM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make WPM a good candidate for value and 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.
- In the past 5 years WPM always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 11.90%, WPM belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.
- With an excellent Return On Equity value of 12.38%, WPM belongs to the best of the industry, outperforming 91.92% of the companies in the same industry.
- WPM has a better Return On Invested Capital (10.12%) than 94.12% of its industry peers.
- WPM had an Average Return On Invested Capital over the past 3 years of 5.89%. This is significantly below the industry average of 11.97%.
- The 3 year average ROIC (5.89%) for WPM is below the current ROIC(10.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 12.38% | ||
| ROIC | 10.12% |
ROA(3y)8.22%
ROA(5y)9.04%
ROE(3y)8.32%
ROE(5y)9.18%
ROIC(3y)5.89%
ROIC(5y)6.17%
1.3 Margins
- Looking at the Profit Margin, with a value of 54.72%, WPM belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of WPM has grown nicely.
- The Operating Margin of WPM (63.50%) is better than 99.39% of its industry peers.
- 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 97.92% 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 | 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.
- WPM has about the same amout of shares outstanding than it did 1 year ago.
- 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
- WPM has an Altman-Z score of 121.17. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
- WPM has a better Altman-Z score (121.17) than 90.21% of its industry peers.
- 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 97.43% of the companies in the same industry.
- A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
- WPM has a Debt to Equity ratio (0.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 121.17 |
ROIC/WACC1.06
WACC9.59%
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 82.50% 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.
- WPM has a Quick ratio of 8.09. This is amongst the best in the industry. WPM outperforms 82.62% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 21.22% on average over the past years. This is a very strong growth
- The Revenue has grown by 50.33% in the past year. This is a very strong growth!
- WPM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.32% yearly.
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
- 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
- With a Price/Earnings ratio of 64.16, WPM can be considered very expensive at the moment.
- WPM's Price/Earnings ratio is rather cheap when compared to the industry. WPM is cheaper than 87.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, WPM is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 41.93, the valuation of WPM can be described as expensive.
- 87.39% of the companies in the same industry are more expensive than WPM, based on the Price/Forward Earnings ratio.
- WPM is valuated expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.16 | ||
| Fwd PE | 41.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WPM is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WPM is valued cheaper than 91.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.54 | ||
| EV/EBITDA | 44.14 |
4.3 Compensation for Growth
- The 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)0.75
PEG (5Y)3.02
EPS Next 2Y52.79%
EPS Next 3Y36.82%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.46%, WPM is not a good candidate for dividend investing.
- WPM's Dividend Yield is rather good when compared to the industry average which is at 0.64. WPM pays more dividend than 95.84% of the companies in the same industry.
- 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
- The dividend of WPM is nicely growing with an annual growth rate of 16.13%!
- WPM has been paying a dividend for at least 10 years, so it has a reliable track record.
- WPM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.13%
Div Incr Years1
Div Non Decr Years9
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 2Y52.79%
EPS Next 3Y36.82%
WHEATON PRECIOUS METALS CORP / WPM.CA FAQ
What is the fundamental rating for WPM stock?
ChartMill assigns a fundamental rating of 8 / 10 to WPM.CA.
Can you provide the valuation status for WHEATON PRECIOUS METALS CORP?
ChartMill assigns a valuation rating of 7 / 10 to WHEATON PRECIOUS METALS CORP (WPM.CA). This can be considered as Undervalued.
Can you provide the profitability details for WHEATON PRECIOUS METALS CORP?
WHEATON PRECIOUS METALS CORP (WPM.CA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WHEATON PRECIOUS METALS CORP (WPM.CA) stock?
The Price/Earnings (PE) ratio for WHEATON PRECIOUS METALS CORP (WPM.CA) is 64.16 and the Price/Book (PB) ratio is 8.05.
Can you provide the expected EPS growth for WPM stock?
The Earnings per Share (EPS) of WHEATON PRECIOUS METALS CORP (WPM.CA) is expected to grow by 85.01% in the next year.