A Look At The Fair Value Of Wheaton Precious Metals Corp. (TSE:WPM)
Nov 25
Canadian (TSX) Materials Sector Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies1327
- 7D3.6%
- 3M3.4%
- 1Y-4.7%
- YTD-6.1%
The Materials industry is up 3.6% in the last week, with Nutrien up 5.8%. In contrast, the industry has lost 4.7% in the last 12 months. As for the next few years, earnings are expected to grow by 7.8% per annum.
Sector Valuation and Performance
Has the Canadian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | CA$433.0b | CA$223.4b | CA$29.1b | 9.9x | 14.9x | 1.9x |
| Tue, 25 Oct 2022 | CA$405.9b | CA$224.8b | CA$33.2b | 8x | 12.2x | 1.8x |
| Thu, 22 Sep 2022 | CA$403.2b | CA$221.0b | CA$32.5b | 9x | 12.4x | 1.8x |
| Sat, 20 Aug 2022 | CA$409.7b | CA$215.7b | CA$31.9b | 9.3x | 12.8x | 1.9x |
| Mon, 18 Jul 2022 | CA$375.1b | CA$206.5b | CA$28.8b | 9x | 13x | 1.8x |
| Wed, 15 Jun 2022 | CA$449.1b | CA$205.4b | CA$28.8b | 10.9x | 15.6x | 2.2x |
| Fri, 13 May 2022 | CA$471.4b | CA$203.2b | CA$28.6b | 10.2x | 16.5x | 2.3x |
| Sun, 10 Apr 2022 | CA$550.9b | CA$190.4b | CA$24.9b | 12.5x | 22.1x | 2.9x |
| Tue, 08 Mar 2022 | CA$546.3b | CA$194.9b | CA$25.9b | 12.5x | 21.1x | 2.8x |
| Thu, 03 Feb 2022 | CA$473.9b | CA$187.3b | CA$24.1b | 10.4x | 19.6x | 2.5x |
| Sat, 01 Jan 2022 | CA$480.8b | CA$186.4b | CA$23.8b | 10.1x | 20.2x | 2.6x |
| Mon, 29 Nov 2021 | CA$469.3b | CA$187.5b | CA$24.3b | 10x | 19.3x | 2.5x |
| Wed, 27 Oct 2021 | CA$476.5b | CA$174.4b | CA$21.0b | 11.2x | 22.6x | 2.7x |
| Fri, 24 Sep 2021 | CA$443.0b | CA$177.3b | CA$21.7b | 10.5x | 20.4x | 2.5x |
| Sun, 22 Aug 2021 | CA$430.5b | CA$174.6b | CA$21.5b | 10.8x | 20x | 2.5x |
| Fri, 09 Jul 2021 | CA$458.3b | CA$174.5b | CA$21.5b | 11.9x | 21.3x | 2.6x |
| Thu, 01 Apr 2021 | CA$419.1b | CA$159.8b | CA$15.0b | 14.3x | 27.9x | 2.6x |
| Sun, 03 Jan 2021 | CA$426.6b | CA$151.5b | CA$8.9b | 15.2x | 48x | 2.8x |
| Wed, 07 Oct 2020 | CA$415.6b | CA$147.0b | CA$3.8b | 18.7x | 110.7x | 2.8x |
| Tue, 30 Jun 2020 | CA$367.8b | CA$143.8b | CA$3.4b | 18x | 106.7x | 2.6x |
| Fri, 03 Apr 2020 | CA$251.6b | CA$149.9b | CA$2.6b | 15.7x | 96.7x | 1.7x |
| Mon, 06 Jan 2020 | CA$310.4b | CA$140.4b | CA$3.9b | 18.7x | 80.4x | 2.2x |
Price to Earnings Ratio
199.5x
Current Industry PE
- Investors are pessimistic on the Canadian Materials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 14.9x which is lower than its 3-year average PE of 55.3x.
- The 3-year average PS ratio of 2.5x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 171% per year over the last three years.
- Revenues for these companies have grown 16% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Materials sector?
| CA Market | 2.10% | |
| Materials | 3.62% | |
| Chemicals | 5.46% | |
| Metals and Mining | 3.49% | |
| Packaging | 2.52% | |
| Paper and Forestry Products | 0.66% | |
| Basic Materials | 0.38% | |
Industry PE
- Investors are most optimistic about the Metals and Mining industry even though it's trading below its 3-year average PE ratio of 64.1x.
- Analysts are expecting annual earnings growth of 16.0%, which is higher than its past year's earnings decline of 24.0% per year.
- Investors are most pessimistic about the Paper and Forestry Products industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Packaging industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings growth rate of 3.8% per year.
- In contrast, the Paper and Forestry Products industry is expected to see its earnings decline by 26% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NTR Nutrien | CA$110.16 | 5.8% +CA$3.1b | 27.1% | PE5.5x | |
| FNV Franco-Nevada | CA$192.76 | 3.8% +CA$1.4b | 10.8% | PE36.5x | |
| IVN Ivanhoe Mines | CA$11.32 | 8.8% +CA$1.1b | 14.3% | PE24.8x | |
| ABX Barrick Gold | CA$21.51 | 2.9% +CA$1.1b | -12.0% | PE15x | |
| FM First Quantum Minerals | CA$30.97 | 4.9% +CA$1.0b | 14.5% | PE13.7x |
