Wheaton Precious Metals Corp.
Wheaton Precious Metals Corp. Fundamental Analysis
Wheaton Precious Metals Corp. (WPM) shows moderate financial fundamentals with a PE ratio of 70.54, profit margin of 54.72%, and ROE of 13.12%. The company generates $1.8B in annual revenue with strong year-over-year growth of 26.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WPM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWPM demonstrates superior asset utilization.
Valuation Score
WeakWPM trades at a premium to fair value.
Growth Score
ModerateWPM shows steady but slowing expansion.
Financial Health Score
ExcellentWPM maintains a strong and stable balance sheet.
Profitability Score
ModerateWPM maintains healthy but balanced margins.
Key Financial Metrics
Is WPM Expensive or Cheap?
P/E Ratio
WPM trades at 70.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WPM's PEG of 2.60 indicates potential overvaluation.
Price to Book
The market values Wheaton Precious Metals Corp. at 8.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 49.00 times EBITDA. This signals the market has high growth expectations.
How Well Does WPM Make Money?
Net Profit Margin
For every $100 in sales, Wheaton Precious Metals Corp. keeps $54.72 as profit after all expenses.
Operating Margin
Core operations generate 57.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.12 in profit for every $100 of shareholder equity.
ROA
Wheaton Precious Metals Corp. generates $11.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wheaton Precious Metals Corp. generates strong operating cash flow of $1.47B, reflecting robust business health.
Free Cash Flow
Wheaton Precious Metals Corp. generates strong free cash flow of $663.40M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.46 in free cash annually.
FCF Yield
WPM converts 0.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
38.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How WPM Stacks Against Its Sector Peers
| Metric | WPM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.54 | 27.01 | Worse (Expensive) |
| ROE | 13.12% | 949.00% | Weak |
| Net Margin | 54.72% | -16219.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 8.09 | 4.42 | Strong Liquidity |
| ROA | 11.90% | -6413.00% (disorted) | Strong |
WPM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wheaton Precious Metals Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.70%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
504.22%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
101.49%
Industry Style: Cyclical, Commodity, Value
High Growth