WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
NYSE:WPM - New York Stock Exchange, Inc. - CA9628791027 - Common Stock - Currency: USD
WPM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 156 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make WPM suitable for 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.
Each year in the past 5 years WPM has 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.
WPM's Return On Invested Capital of 10.26% is amongst the best of the industry. WPM outperforms 85.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WPM is below the industry average of 11.60%.
The last Return On Invested Capital (10.26%) for WPM is above the 3 year average (7.44%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 42.45%, WPM belongs to the top of the industry, outperforming 96.82% of the companies in the same industry.
WPM's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 65.15%, WPM belongs to the top of the industry, outperforming 94.90% of the companies in the same industry.
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
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.
Compared to 5 years ago, WPM has more shares outstanding
The debt/assets ratio for WPM has been reduced compared to a year ago.
2.2 Solvency
WPM has an Altman-Z score of 95.07. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WPM (95.07) is better than 96.82% 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.
WPM has a better Debt to FCF ratio (0.01) than 96.82% 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 82.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 95.07 |
ROIC/WACC1.16
WACC8.86%
2.3 Liquidity
WPM has a Current Ratio of 11.38. This indicates that WPM is financially healthy and has no problem in meeting its short term obligations.
WPM has a Current ratio of 11.38. This is amongst the best in the industry. WPM outperforms 92.36% of its industry peers.
WPM has a Quick Ratio of 11.38. This indicates that WPM is financially healthy and has no problem in meeting 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.
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 32.76% 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)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.
The Revenue is expected to grow by 4.47% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 56.61, the valuation of WPM can be described as expensive.
WPM's Price/Earnings ratio is in line with the industry average.
WPM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.04.
Based on the Price/Forward Earnings ratio of 45.64, the valuation of WPM can be described as expensive.
WPM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WPM to the average of the S&P500 Index (37.64), we can say WPM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.61 | ||
| Fwd PE | 45.64 |
4.2 Price Multiples
WPM's Enterprise Value to EBITDA ratio is in line with 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 68.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.61 | ||
| EV/EBITDA | 37.01 |
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)1.25
PEG (5Y)2.67
EPS Next 2Y18.52%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, WPM is not a good candidate for dividend investing.
WPM's Dividend Yield is a higher than the industry average which is at 2.61.
With a Dividend Yield of 0.64, WPM pays less dividend than the S&P500 average, which is at 2.31.
| 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
WPM pays out 45.07% of its income as dividend. 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%
93.98
-0.03 (-0.03%)
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 Cap42.65B
Analysts82.5
Price Target101.66 (8.17%)
Short Float %1.53%
Short Ratio3.75
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 | 56.61 | ||
| Fwd PE | 45.64 | ||
| P/S | 29.25 | ||
| P/FCF | 47.61 | ||
| P/OCF | 36.49 | ||
| P/B | 5.71 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 37.01 |
EPS(TTM)1.66
EY1.77%
EPS(NY)2.06
Fwd EY2.19%
FCF(TTM)1.97
FCFY2.1%
OCF(TTM)2.58
OCFY2.74%
SpS3.21
BVpS16.45
TBVpS16.45
PEG (NY)1.25
PEG (5Y)2.67
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 | 95.07 |
F-Score6
WACC8.86%
ROIC/WACC1.16
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%