WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
USA - NYSE:WPM - CA9628791027 - Common Stock
106.63 USD
-0.74 (-0.69%)
106.4 USD
-0.23 (-0.22%)
WPM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 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 growing strongly while it is still valued neutral. This is a good combination! 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.
Each year in the past 5 years WPM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.88%, WPM belongs to the top of the industry, outperforming 89.10% of the companies in the same industry.
WPM has a better Return On Equity (10.21%) than 77.56% of its industry peers.
WPM's Return On Invested Capital of 11.86% is amongst the best of the industry. WPM outperforms 87.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WPM is significantly below the industry average of 13.00%.
The last Return On Invested Capital (11.86%) for WPM is above the 3 year average (7.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 10.21% | ||
| ROIC | 11.86% |
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 better Profit Margin (47.46%) than 96.79% of its industry peers.
WPM's Profit Margin has improved in the last couple of years.
WPM has a Operating Margin of 61.53%. This is amongst the best in the industry. WPM outperforms 96.79% of its industry peers.
WPM's Operating Margin has improved in the last couple of years.
The Gross Margin of WPM (67.19%) is better than 94.87% of its industry peers.
WPM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.53% | ||
| PM (TTM) | 47.46% | ||
| GM | 67.19% |
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.
The number of shares outstanding for WPM remains at a similar level compared to 1 year ago.
WPM has more shares outstanding than it did 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 114.61. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
WPM has a better Altman-Z score (114.61) than 96.15% 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 Debt to FCF ratio of 0.01. This is amongst the best in the industry. WPM outperforms 98.08% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
WPM's Debt to Equity ratio of 0.00 is amongst the best of the industry. WPM outperforms 81.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 114.61 |
ROIC/WACC1.27
WACC9.31%
2.3 Liquidity
A Current Ratio of 7.38 indicates that WPM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.38, WPM belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
A Quick Ratio of 7.38 indicates that WPM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 7.38, WPM belongs to the best of the industry, outperforming 87.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.38 | ||
| Quick Ratio | 7.38 |
3. Growth
3.1 Past
WPM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.15%, 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.
WPM shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.79%.
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)48.15%
EPS 3Y3.74%
EPS 5Y21.22%
EPS Q2Q%91.19%
Revenue 1Y (TTM)46.79%
Revenue growth 3Y2.25%
Revenue growth 5Y8.32%
Sales Q2Q%68.25%
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 12.19% yearly.
WPM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.61% yearly.
EPS Next Y65.42%
EPS Next 2Y29%
EPS Next 3Y18.83%
EPS Next 5Y12.19%
Revenue Next Year50.93%
Revenue Next 2Y24.45%
Revenue Next 3Y18.58%
Revenue Next 5Y8.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 54.40, WPM can be considered very expensive at the moment.
62.18% of the companies in the same industry are more expensive than WPM, based on the Price/Earnings ratio.
WPM is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 43.71, WPM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WPM to the average of the S&P500 Index (22.73), we can say WPM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.4 | ||
| Fwd PE | 43.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WPM.
Based on the Price/Free Cash Flow ratio, WPM is valued a bit cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.35 | ||
| EV/EBITDA | 36.46 |
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.
A more expensive valuation may be justified as WPM's earnings are expected to grow with 18.83% in the coming years.
PEG (NY)0.83
PEG (5Y)2.56
EPS Next 2Y29%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, WPM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.71, WPM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.58, WPM pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
36.48% 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.
DP36.48%
EPS Next 2Y29%
EPS Next 3Y18.83%
106.63
-0.74 (-0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.52%
Inst Owner Change0.49%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap48.41B
Analysts82.5
Price Target117.5 (10.19%)
Short Float %1.32%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.62
Dividend Growth(5Y)16.13%
DP36.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.82%
Min EPS beat(2)6.14%
Max EPS beat(2)13.49%
EPS beat(4)3
Avg EPS beat(4)4.46%
Min EPS beat(4)-1.83%
Max EPS beat(4)13.49%
EPS beat(8)7
Avg EPS beat(8)7.49%
EPS beat(12)8
Avg EPS beat(12)4.09%
EPS beat(16)10
Avg EPS beat(16)2.04%
Revenue beat(2)2
Avg Revenue beat(2)10.59%
Min Revenue beat(2)6.71%
Max Revenue beat(2)14.47%
Revenue beat(4)2
Avg Revenue beat(4)3.46%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)14.47%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)5
Avg Revenue beat(12)-0.91%
Revenue beat(16)7
Avg Revenue beat(16)-1.73%
PT rev (1m)7.91%
PT rev (3m)18.3%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)30.07%
EPS NY rev (1m)13.95%
EPS NY rev (3m)13.95%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)11.59%
Revenue NY rev (1m)5.81%
Revenue NY rev (3m)9.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.4 | ||
| Fwd PE | 43.71 | ||
| P/S | 29.12 | ||
| P/FCF | 63.35 | ||
| P/OCF | 35.87 | ||
| P/B | 6.27 | ||
| P/tB | 6.27 | ||
| EV/EBITDA | 36.46 |
EPS(TTM)1.96
EY1.84%
EPS(NY)2.44
Fwd EY2.29%
FCF(TTM)1.68
FCFY1.58%
OCF(TTM)2.97
OCFY2.79%
SpS3.66
BVpS17.02
TBVpS17.02
PEG (NY)0.83
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 10.21% | ||
| ROCE | 13.04% | ||
| ROIC | 11.86% | ||
| ROICexc | 13.6% | ||
| ROICexgc | 13.6% | ||
| OM | 61.53% | ||
| PM (TTM) | 47.46% | ||
| GM | 67.19% | ||
| FCFM | 45.97% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 211.04% | ||
| Cap/Sales | 35.22% | ||
| Interest Coverage | 3226.52 | ||
| Cash Conversion | 103.8% | ||
| Profit Quality | 96.85% | ||
| Current Ratio | 7.38 | ||
| Quick Ratio | 7.38 | ||
| Altman-Z | 114.61 |
F-Score6
WACC9.31%
ROIC/WACC1.27
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)48.15%
EPS 3Y3.74%
EPS 5Y21.22%
EPS Q2Q%91.19%
EPS Next Y65.42%
EPS Next 2Y29%
EPS Next 3Y18.83%
EPS Next 5Y12.19%
Revenue 1Y (TTM)46.79%
Revenue growth 3Y2.25%
Revenue growth 5Y8.32%
Sales Q2Q%68.25%
Revenue Next Year50.93%
Revenue Next 2Y24.45%
Revenue Next 3Y18.58%
Revenue Next 5Y8.61%
EBIT growth 1Y70.84%
EBIT growth 3Y6.86%
EBIT growth 5Y20.15%
EBIT Next Year94.96%
EBIT Next 3Y28.98%
EBIT Next 5Y19.17%
FCF growth 1Y68.82%
FCF growth 3Y-22.11%
FCF growth 5Y-4.46%
OCF growth 1Y103.25%
OCF growth 3Y6.73%
OCF growth 5Y15.42%