WHEATON PRECIOUS METALS CORP (WPM) Stock Fundamental Analysis
NYSE:WPM - New York Stock Exchange, Inc. - CA9628791027 - Common Stock - Currency: USD
Taking everything into account, WPM scores 7 out of 10 in our fundamental rating. WPM was compared to 154 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make WPM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
WPM had positive earnings in the past year.
In the past year WPM had a positive cash flow from operations.
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
WPM has a better Return On Assets (8.00%) than 85.16% of its industry peers.
With a decent Return On Equity value of 8.29%, WPM is doing good in the industry, outperforming 74.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.26%, WPM belongs to the top of the industry, outperforming 86.45% 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 11.16%.
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
WPM has a better Profit Margin (42.45%) than 97.42% of its industry peers.
WPM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 59.12%, WPM belongs to the best of the industry, outperforming 97.42% of the companies in the same industry.
In the last couple of years the Operating Margin of WPM has grown nicely.
With an excellent Gross Margin value of 65.15%, WPM belongs to the best of the industry, outperforming 94.84% 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 | 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.
WPM has about the same amout of shares outstanding than it did 1 year ago.
WPM has more shares outstanding than it did 5 years ago.
WPM has a better debt/assets ratio than last year.
2.2 Solvency
WPM has an Altman-Z score of 92.80. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 92.80, WPM belongs to the best of the industry, outperforming 96.13% of the companies in the same industry.
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.
The Debt to FCF ratio of WPM (0.01) is better than 96.77% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WPM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, WPM belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 92.8 |
ROIC/WACC1.32
WACC7.75%
2.3 Liquidity
A Current Ratio of 11.38 indicates that WPM has no problem at all paying its short term obligations.
WPM has a better Current ratio (11.38) than 92.26% 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.
WPM has a Quick ratio of 11.38. This is amongst the best in the industry. WPM outperforms 92.26% of its industry peers.
| 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.
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.
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
WPM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.88% yearly.
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
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.
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
WPM is valuated quite expensively with a Price/Earnings ratio of 55.24.
The rest of the industry has a similar Price/Earnings ratio as WPM.
WPM is valuated expensively when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 44.53 indicates a quite expensive valuation of WPM.
The rest of the industry has a similar Price/Forward Earnings ratio as WPM.
The average S&P500 Price/Forward Earnings ratio is at 22.13. WPM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.24 | ||
| Fwd PE | 44.53 |
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 67.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.45 | ||
| EV/EBITDA | 36.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WPM may justify a higher PE ratio.
PEG (NY)1.22
PEG (5Y)2.6
EPS Next 2Y18.52%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
WPM has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 2.99, WPM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, WPM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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.
WPM has decreased its dividend 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.
The dividend of WPM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.07%
EPS Next 2Y18.52%
EPS Next 3Y11.37%
91.7
+1.29 (+1.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.52%
Inst Owner Change0.21%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap41.62B
Analysts82.5
Price Target99.32 (8.31%)
Short Float %0.76%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)1.71%
PT rev (3m)32.74%
EPS NQ rev (1m)14.01%
EPS NQ rev (3m)9.73%
EPS NY rev (1m)0%
EPS NY rev (3m)20.53%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.24 | ||
| Fwd PE | 44.53 | ||
| P/S | 28.54 | ||
| P/FCF | 46.45 | ||
| P/OCF | 35.6 | ||
| P/B | 5.57 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 36.09 |
EPS(TTM)1.66
EY1.81%
EPS(NY)2.06
Fwd EY2.25%
FCF(TTM)1.97
FCFY2.15%
OCF(TTM)2.58
OCFY2.81%
SpS3.21
BVpS16.45
TBVpS16.45
PEG (NY)1.22
PEG (5Y)2.6
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 | 92.8 |
F-Score6
WACC7.75%
ROIC/WACC1.32
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%