Wheaton Precious Metals Corp. Fundamental Analysis (NYSE: WPM)
Wheaton Precious Metals Corp. (NYSE: WPM) shows strong financial fundamentals with a PE ratio of 29.67, profit margin of 64.66%, and ROE of 22.96%. The company generates $3.2B in annual revenue with strong year-over-year growth of 83.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WPM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWPM demonstrates superior asset utilization.
Valuation Score
ModerateWPM shows balanced valuation metrics.
Growth Score
ModerateWPM shows steady but slowing expansion.
Financial Health Score
ModerateWPM shows balanced financial health with some risks.
Profitability Score
ModerateWPM maintains healthy but balanced margins.
Key Financial Metrics
Is WPM Expensive or Cheap?
P/E Ratio
WPM trades at 29.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WPM's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Wheaton Precious Metals Corp. at 6.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.17 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 $64.66 as profit after all expenses.
Operating Margin
Core operations generate 72.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.96 in profit for every $100 of shareholder equity.
ROA
Wheaton Precious Metals Corp. generates $16.87 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 $2.54B, reflecting robust business health.
Free Cash Flow
Wheaton Precious Metals Corp. generates weak or negative free cash flow of $-2.93B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.44 in free cash annually.
FCF Yield
WPM converts -4.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How WPM Stacks Against Its Sector Peers
| Metric | WPM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.67 | 27.52 | Neutral |
| ROE | 22.96% | 1182.00% | Weak |
| Net Margin | 64.66% | 195.00% | Weak |
| Debt/Equity | 0.20 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 0.47 | 3.28 | Weak Liquidity |
| ROA | 16.87% | 476796.00% | Weak |
WPM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
112.38%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
191.52%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
150.34%
Industry Style: Cyclical, Commodity, Value
High Growth