Latest news with #WheatonPreciousMetals'
Forbes
15-05-2025
- Business
- Forbes
Buy Or Fear Wheaton Precious Metals Stock?
POLAND - 2024/12/17: In this photo illustration, the Wheaton Precious Metals company logo is seen ... More displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) Wheaton Precious Metals (NYSE:WPM) stock appears appealing but unpredictable – making it a difficult choice to acquire at its present price of approximately $76. We believe there is little reason for worry regarding WPM stock, which makes it appealing yet highly susceptible to negative events due to its exceedingly high valuation. We reach our assessment by analyzing the current valuation of WPM stock compared to its operational performance over recent years, as well as its current and historical financial status. Our evaluation of Wheaton Precious Metals based on key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company has a very robust operational performance and financial health, as explained below. Nevertheless, if you are looking for upside with less volatility than individual stocks, the Trefis High-Quality portfolio provides an alternative – having surpassed the S&P 500 and delivered returns exceeding 91% since its launch. Based on what you pay per dollar of sales or profit, WPM stock seems very costly in relation to the wider market. • Wheaton Precious Metals holds a price-to-sales (P/S) ratio of 30.5 compared to a figure of 2.8 for the S&P 500 • Moreover, the company's price-to-free cash flow (P/FCF) ratio stands at 39.1 versus 17.6 for the S&P 500 • Additionally, it has a price-to-earnings (P/E) ratio of 56.0 compared to the benchmark's 24.5 Wheaton Precious Metals' Revenues have experienced notable growth in recent years. • Wheaton Precious Metals has witnessed its top line grow at an average rate of 2.0% over the last 3 years (compared to an increase of 6.2% for the S&P 500) • Its revenues have increased by 29.7% from $1.0 Bil to $1.3 Bil in the last 12 months (in contrast to a growth of 5.3% for the S&P 500) • Additionally, its quarterly revenues rose by 38.1% to $381 Mil in the most recent quarter from $313 Mil a year prior (versus a 4.9% improvement for the S&P 500) Wheaton Precious Metals' profit margins are significantly higher than most firms within the Trefis coverage universe. • Wheaton Precious Metals' Operating Income over the last four quarters reached $669 Mil, which reflects a remarkably high Operating Margin of 55.0% (compared to 13.1% for the S&P 500) • Wheaton Precious Metals' Operating Cash Flow (OCF) during this period was $950 Mil, indicating a notably high OCF Margin of 78.1% (compared to 15.7% for the S&P 500) • For the last four-quarter timeframe, Wheaton Precious Metals' Net Income was $609 Mil – suggesting a very high Net Income Margin of 50.1% (compared to 11.3% for the S&P 500) Wheaton Precious Metals' balance sheet appears solid. • Wheaton Precious Metals' Debt stood at $5.7 Mil at the end of the most recent quarter, while its market capitalization is $36 Bil (as of 5/13/2025). This indicates a very strong Debt-to-Equity Ratio of 0.0% (compared to 21.5% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) accounts for $818 Mil of the $7.4 Bil in Total Assets for Wheaton Precious Metals. This results in a moderate Cash-to-Assets Ratio of 9.4% (compared to 15.0% for the S&P 500) WPM stock has proven to be more resilient than the benchmark S&P 500 index during certain recent downturns. While investors hope for a gentle landing by the U.S. economy, how severe could things become if another recession strikes? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and following the last six market crashes. • WPM stock declined 43.8% from a high of $51.71 on 20 April 2022 to $29.08 on 26 September 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500 • The stock completely rebounded to its pre-Crisis peak by 13 April 2023 • Since then, the stock has risen to a high of $85.77 on 11 May 2025 and currently trades around $76 • WPM stock fell 28.7% from a peak of $33.30 on 24 February 2020 to $23.74 on 19 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 13 April 2020 • WPM stock decreased 86.7% from a peak of $19.50 on 14 March 2008 to $2.59 on 20 November 2008, in contrast to a peak-to-trough drop of 56.8% for the S&P 500 • The stock successfully returned to its pre-Crisis peak by 30 April 2010 In conclusion, Wheaton Precious Metals' performance across the parameters outlined above is as follows: • Growth: Very Strong • Profitability: Extremely Strong • Financial Stability: Very Strong • Downturn Resilience: Strong • Overall: Very Strong Therefore, despite its exceedingly high valuation, the stock seems appealing but unpredictable, which reinforces our conclusion that WPM is a difficult stock to acquire. Not entirely content with the volatile nature of WPM stock? The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a history of consistently outperforming the S&P 500 over the past four years. What accounts for this? In aggregate, HQ Portfolio stocks have yielded superior returns with reduced risk compared to the benchmark index; it has proven to be less of a roller-coaster ride, as demonstrated by HQ Portfolio performance metrics.
Yahoo
13-03-2025
- Business
- Yahoo
Wheaton Precious Metals Corp.'s (TSE:WPM) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Most readers would already be aware that Wheaton Precious Metals' (TSE:WPM) stock increased significantly by 13% over the past three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Wheaton Precious Metals' ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits. See our latest analysis for Wheaton Precious Metals ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Wheaton Precious Metals is: 8.4% = US$609m ÷ US$7.3b (Based on the trailing twelve months to September 2024). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.08 in profit. We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. When you first look at it, Wheaton Precious Metals' ROE doesn't look that attractive. However, given that the company's ROE is similar to the average industry ROE of 10%, we may spare it some thought. Even so, Wheaton Precious Metals has shown a fairly decent growth in its net income which grew at a rate of 17%. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For instance, the company has a low payout ratio or is being managed efficiently. We then compared Wheaton Precious Metals' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 21% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for WPM? You can find out in our latest intrinsic value infographic research report. Wheaton Precious Metals has a three-year median payout ratio of 44%, which implies that it retains the remaining 56% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently. Additionally, Wheaton Precious Metals has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 43%. Accordingly, forecasts suggest that Wheaton Precious Metals' future ROE will be 8.8% which is again, similar to the current ROE. On the whole, we do feel that Wheaton Precious Metals has some positive attributes. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Wheaton Precious Metals Corp.'s (TSE:WPM) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Most readers would already be aware that Wheaton Precious Metals' (TSE:WPM) stock increased significantly by 13% over the past three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Wheaton Precious Metals' ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits. See our latest analysis for Wheaton Precious Metals ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Wheaton Precious Metals is: 8.4% = US$609m ÷ US$7.3b (Based on the trailing twelve months to September 2024). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.08 in profit. We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. When you first look at it, Wheaton Precious Metals' ROE doesn't look that attractive. However, given that the company's ROE is similar to the average industry ROE of 10%, we may spare it some thought. Even so, Wheaton Precious Metals has shown a fairly decent growth in its net income which grew at a rate of 17%. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For instance, the company has a low payout ratio or is being managed efficiently. We then compared Wheaton Precious Metals' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 21% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for WPM? You can find out in our latest intrinsic value infographic research report. Wheaton Precious Metals has a three-year median payout ratio of 44%, which implies that it retains the remaining 56% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently. Additionally, Wheaton Precious Metals has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 43%. Accordingly, forecasts suggest that Wheaton Precious Metals' future ROE will be 8.8% which is again, similar to the current ROE. On the whole, we do feel that Wheaton Precious Metals has some positive attributes. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
