TSX:WPM

Stock Analysis Report

Wheaton Precious Metals

Executive Summary

Wheaton Precious Metals Corp., a mining company, primarily sells precious metals in Canada and internationally.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Wheaton Precious Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.9%

WPM

-5.7%

CA Metals and Mining

0.3%

CA Market


1 Year Return

47.4%

WPM

9.0%

CA Metals and Mining

0.1%

CA Market

Return vs Industry: WPM exceeded the Canadian Metals and Mining industry which returned 9% over the past year.

Return vs Market: WPM exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

WPMIndustryMarket
7 Day-6.9%-5.7%0.3%
30 Day-4.8%-5.4%-2.5%
90 Day-4.2%-5.2%-1.4%
1 Year50.0%47.4%9.8%9.0%3.6%0.1%
3 Year11.0%5.5%-11.7%-13.4%14.3%4.1%
5 Year66.6%54.9%2.5%-1.4%25.0%6.9%

Price Volatility Vs. Market

How volatile is Wheaton Precious Metals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wheaton Precious Metals undervalued compared to its fair value and its price relative to the market?

2.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: WPM (CA$33.7) is trading below our estimate of fair value (CA$33.27)

Significantly Undervalued: WPM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WPM is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: WPM is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate WPM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WPM is overvalued based on its PB Ratio (2.2x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Wheaton Precious Metals forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

82.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WPM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WPM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WPM's revenue (8.6% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: WPM's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WPM's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Wheaton Precious Metals performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WPM is unprofitable, but has reduced losses over the past 5 years at a rate of 12.6% per year.

Accelerating Growth: Unable to compare WPM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WPM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: WPM has a negative Return on Equity (-0.52%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WPM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WPM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Wheaton Precious Metals's financial position?


Financial Position Analysis

Short Term Liabilities: WPM's short term assets ($91.3M) exceeds its short term liabilities ($25.0M)

Long Term Liabilities: WPM's short term assets (91.3M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: WPM's debt to equity ratio (21.4%) is considered satisfactory

Reducing Debt: WPM's debt to equity ratio has reduced from 28.5% to 21.4% over the past 5 years.

Debt Coverage: WPM's debt is well covered by operating cash flow (40.6%).

Interest Coverage: WPM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: WPM has a high level of physical assets or inventory.

Debt Coverage by Assets: WPM's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Wheaton Precious Metals's current dividend yield, its reliability and sustainability?

1.41%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WPM's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: WPM's dividend (1.41%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).

Stable Dividend: WPM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: WPM's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: WPM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: WPM's dividends in 3 years are forecast to be well covered by earnings (49.9% payout ratio).


Next Steps

Management

What is the CEO of Wheaton Precious Metals's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Randy V. Smallwood (54yo)

8.5yrs

Tenure

US$4,389,410

Compensation

Mr. Randy V. J. Smallwood, P. Eng., serves as Director at Defiance Silver Corporation since December 31, 2018. He is a Co-Founder of Wheaton Precious Metals Corp. formerly known as Silver Wheaton Corp., an ...


CEO Compensation Analysis

Compensation vs. Market: Randy V.'s total compensation ($USD4.39M) is about average for companies of similar size in the Canadian market ($USD6.88M).

Compensation vs Earnings: Randy V.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.1yrs

Average Tenure

52yo

Average Age

Experienced Management: WPM's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

61yo

Average Age

Experienced Board: WPM's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

Insider Buying: WPM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$163,00006 Sep 19
George Brack
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$40.75
SellUS$151,22123 Aug 19
George Brack
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$37.81
SellUS$3,663,76329 Mar 19
Nikola Tatarkin
EntityIndividual
Role
Unit President
President of Wheaton Precious Metals International Ltd
Shares110,000
Max PriceUS$33.33
SellUS$2,890,45728 Mar 19
Gary Brown
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares86,677
Max PriceUS$33.38
BuyUS$76,88722 Dec 18
Gary Brown
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,000
Max PriceUS$25.63

Ownership Breakdown


Management Team

  • Haytham Hodaly

    Senior Vice President of Corporate Development

    • Tenure: 7.8yrs
    • Compensation: US$1.77m
  • Randy V. Smallwood (54yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$4.39m
  • Curt Bernardi (51yo)

    Senior VP of Legal & Corporate Secretary

    • Tenure: 0yrs
    • Compensation: US$1.77m
  • Gary Brown (52yo)

    Senior VP & CFO

    • Tenure: 11.3yrs
    • Compensation: US$1.77m
  • Neil Burns

    Vice President of Technical Services

    • Tenure: 7.8yrs
  • Nikola Tatarkin

    President of Wheaton Precious Metals International Ltd

    • Tenure: 0yrs
    • Compensation: US$1.28m
  • Patrick Drouin

    Senior Vice President of Investor Relations

    • Tenure: 5.6yrs
    • Compensation: US$1.26m
  • Jamie Beirnes

    VP & Controller

    • Tenure: 10.8yrs

Board Members

  • Chuck Jeannes (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$204.16k
  • R. Gillin (70yo)

    Director

    • Tenure: 15yrs
    • Compensation: US$240.32k
  • Doug Holtby (72yo)

    Chairman of the Board

    • Tenure: 10.8yrs
    • Compensation: US$320.24k
  • John Brough (72yo)

    Director

    • Tenure: 15yrs
    • Compensation: US$227.94k
  • Eduardo Arellano (74yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$215.93k
  • George Brack (58yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: US$211.44k
  • Randy V. Smallwood (54yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$4.39m
  • Chantal Gosselin (49yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$207.60k
  • Marilyn Schonberner (59yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$237.50k

Company Information

Wheaton Precious Metals Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wheaton Precious Metals Corp.
  • Ticker: WPM
  • Exchange: TSX
  • Founded: 2004
  • Industry: Silver
  • Sector: Materials
  • Market Cap: CA$15.017b
  • Shares outstanding: 445.60m
  • Website: https://www.wheatonpm.com

Number of Employees


Location

  • Wheaton Precious Metals Corp.
  • 1021 West Hastings Street
  • Suite 3500
  • Vancouver
  • British Columbia
  • V6E 0C3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPMTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2004
SIIDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2004
WPMNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2004
SIIXTRA (XETRA Trading Platform)YesCommon SharesDEEUROct 2004
SLWSWX (SIX Swiss Exchange)YesCommon SharesCHCHFOct 2004
0VOTLSE (London Stock Exchange)YesCommon SharesGBCADOct 2004

Biography

Wheaton Precious Metals Corp., a mining company, primarily sells precious metals in Canada and internationally. The company sells silver and gold ores. It has agreements for 19 operating mines and 9 develo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:52
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.