WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
NYSE:WPM - New York Stock Exchange, Inc. - CA9628791027 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to WPM. WPM was compared to 157 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 a correct valuation and a medium growth rate. With these ratings, WPM could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year WPM was profitable.
WPM had a positive operating cash flow in the past year.
In the past 5 years WPM has always been profitable.
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 8.00%, WPM belongs to the best of the industry, outperforming 85.35% of the companies in the same industry.
WPM has a Return On Equity of 8.29%. This is in the better half of the industry: WPM outperforms 75.16% of its industry peers.
The Return On Invested Capital of WPM (10.26%) is better than 85.35% of its industry peers.
WPM had an Average Return On Invested Capital over the past 3 years of 7.44%. This is below the industry average of 11.70%.
The 3 year average ROIC (7.44%) for WPM is below the current ROIC(10.26%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 42.45%, WPM belongs to the best of the industry, outperforming 96.82% of the companies in the same industry.
In the last couple of years the Profit Margin of WPM has grown nicely.
WPM's Operating Margin of 59.12% is amongst the best of the industry. WPM outperforms 96.82% of its industry peers.
WPM's Operating Margin has improved in the last couple of years.
The Gross Margin of WPM (65.15%) is better than 94.90% of its industry peers.
WPM's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for WPM remains at a similar level compared to 1 year ago.
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 92.10 indicates that WPM is not in any danger for bankruptcy at the moment.
WPM's Altman-Z score of 92.10 is amongst the best of the industry. WPM outperforms 96.18% 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 96.82% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
WPM has a better Debt to Equity ratio (0.00) than 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 92.1 |
ROIC/WACC1.17
WACC8.74%
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 92.36% of its industry peers.
A Quick Ratio of 11.38 indicates that WPM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 11.38, WPM belongs to the top of the industry, outperforming 92.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.38 | ||
| Quick Ratio | 11.38 |
3. Growth
3.1 Past
WPM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.88%, 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
Looking at the last year, WPM shows a very strong growth in Revenue. 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
Based on estimates for the next years, WPM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.88% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.82, the valuation of WPM can be described as expensive.
WPM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.61, WPM is valued quite expensively.
The Price/Forward Earnings ratio is 44.19, which means the current valuation is very expensive for WPM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 37.13. WPM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.82 | ||
| Fwd PE | 44.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WPM.
WPM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WPM is cheaper than 68.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.1 | ||
| EV/EBITDA | 35.8 |
4.3 Compensation for Growth
The 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)1.21
PEG (5Y)2.58
EPS Next 2Y18.52%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
WPM has a yearly dividend return of 0.64%, which is pretty low.
WPM's Dividend Yield is a higher than the industry average which is at 2.87.
With a Dividend Yield of 0.64, WPM pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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.
The dividend of WPM decreased recently.
Dividend Growth(5Y)16.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
45.07% of the earnings are spent on dividend by WPM. 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%
91
-2.38 (-2.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.52%
Inst Owner Change-0.68%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap41.30B
Analysts82.5
Price Target101.66 (11.71%)
Short Float %1.5%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)0.91%
PT rev (3m)5.35%
EPS NQ rev (1m)4.71%
EPS NQ rev (3m)19.38%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)3.32%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.82 | ||
| Fwd PE | 44.19 | ||
| P/S | 28.32 | ||
| P/FCF | 46.1 | ||
| P/OCF | 35.33 | ||
| P/B | 5.53 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 35.8 |
EPS(TTM)1.66
EY1.82%
EPS(NY)2.06
Fwd EY2.26%
FCF(TTM)1.97
FCFY2.17%
OCF(TTM)2.58
OCFY2.83%
SpS3.21
BVpS16.45
TBVpS16.45
PEG (NY)1.21
PEG (5Y)2.58
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 | 92.1 |
F-Score6
WACC8.74%
ROIC/WACC1.17
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%