TSX:WPM

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Wheaton Precious Metals

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with questionable track record.


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

Stable Share Price: WPM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

WPM

1.7%

CA Metals and Mining

2.1%

CA Market


1 Year Return

98.5%

WPM

46.8%

CA Metals and Mining

-9.6%

CA Market

Return vs Industry: WPM exceeded the Canadian Metals and Mining industry which returned 44.3% over the past year.

Return vs Market: WPM exceeded the Canadian Market which returned -10.8% over the past year.


Shareholder returns

WPMIndustryMarket
7 Day4.4%1.7%2.1%
30 Day23.5%18.5%3.2%
90 Day36.7%30.0%12.4%
1 Year101.0%98.5%47.9%46.8%-6.4%-9.6%
3 Year173.4%160.2%52.3%49.3%7.0%-3.3%
5 Year316.5%286.7%134.9%128.0%26.6%7.2%

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?

169.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WPM (CA$64.07) is trading above our estimate of fair value (CA$29.06)

Significantly Below Fair Value: WPM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WPM is poor value based on its PE Ratio (170x) compared to the CA Metals and Mining industry average (24.4x).

PE vs Market: WPM is poor value based on its PE Ratio (170x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: WPM is poor value based on its PEG Ratio (97.9x)


Price to Book Ratio

PB vs Industry: WPM is overvalued based on its PB Ratio (4x) compared to the CA Metals and Mining industry average (2.3x).


Next Steps

Future Growth

How is Wheaton Precious Metals forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPM's forecast earnings growth (1.7% per year) is above the savings rate (1.7%).

Earnings vs Market: WPM's earnings (1.7% per year) are forecast to grow slower than the Canadian market (23.6% per year).

High Growth Earnings: WPM's earnings are forecast to grow, but not significantly.

Revenue vs Market: WPM's revenue (1.2% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: WPM's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPM's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

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

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPM has high quality earnings.

Growing Profit Margin: WPM's current net profit margins (13.9%) are lower than last year (50.2%).


Past Earnings Growth Analysis

Earnings Trend: WPM's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: WPM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WPM had negative earnings growth (-69.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (18.3%).


Return on Equity

High ROE: WPM's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is Wheaton Precious Metals's financial position?


Financial Position Analysis

Short Term Liabilities: WPM's short term assets ($172.9M) exceed its short term liabilities ($116.6M).

Long Term Liabilities: WPM's short term assets ($172.9M) do not cover its long term liabilities ($722.1M).


Debt to Equity History and Analysis

Debt Level: WPM's debt to equity ratio (13.7%) is considered satisfactory.

Reducing Debt: WPM's debt to equity ratio has reduced from 18% to 13.7% over the past 5 years.

Debt Coverage: WPM's debt is well covered by operating cash flow (78.4%).

Interest Coverage: WPM's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WPM's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.87%).

High Dividend: WPM's dividend (0.85%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).


Stability and Growth of Payments

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: With its high payout ratio (133.7%), WPM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WPM's dividends in 3 years are forecast to be well covered by earnings (49.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average management tenure


CEO

Randy V. Smallwood (55yo)

9.25yrs

Tenure

US$5,284,135

Compensation

Mr. Randy V. J. Smallwood, P. Eng., is a Co-Founder of Wheaton Precious Metals Corp. formerly known as Silver Wheaton Corp., and has been President since January 1, 2010 and Chief Executive Officer since A ...


CEO Compensation Analysis

Compensation vs Market: Randy V.'s total compensation ($USD3.88M) is below average for companies of similar size in the Canadian market ($USD6.95M).

Compensation vs Earnings: Randy V.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Randy V. Smallwood
President9.25yrsUS$5.28m0.047% $12.8m
Gary Brown
Senior VP & CFO12yrsUS$2.33m0.0074% $2.0m
Curt Bernardi
Senior VP of Legal & Corporate Secretaryno dataUS$2.31m0.0013% $364.1k
Haytham Hodaly
Senior Vice President of Corporate Development8.5yrsUS$2.28mno data
Nikola Tatarkin
President of Wheaton Precious Metals International Ltdno dataUS$1.58m0.0046% $1.3m
Neil Burns
Vice President of Technical Services8.5yrsno datano data
Patrick Drouin
Senior Vice President of Investor Relations6.33yrsUS$1.26mno data
Jamie Beirnes
VP & Controller11.58yrsno datano data

8.9yrs

Average Tenure

53yo

Average Age

Experienced Management: WPM's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randy V. Smallwood
President9.25yrsUS$5.28m0.047% $12.8m
Charles Jeannes
Independent Director3.67yrsUS$266.51k0.0037% $1.0m
R. Gillin
Independent Director15.75yrsUS$321.89k0.0055% $1.5m
Douglas Holtby
Independent Chairman of the Board11.5yrsUS$427.97k0.0096% $2.7m
John Brough
Independent Director15.75yrsUS$306.82kno data
Eduardo Arellano
Independent Director15.58yrsUS$283.90k0.025% $6.8m
George Brack
Independent Director10.67yrsUS$279.73k0.0032% $893.7k
Chantal Gosselin
Independent Director6.67yrsUS$279.99k0.00066% $182.0k
Marilyn Schonberner
Independent Director2.42yrsUS$268.01k0.00089% $245.5k
Glenn Ives
Non Independent Director0.17yrno data0.0011% $308.9k

9.9yrs

Average Tenure

61yo

Average Age

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WPM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: Gold
  • Sector: Materials
  • Market Cap: CA$27.583b
  • Shares outstanding: 448.35m
  • 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 gold, silver, and palladium ores. It has agreements for 20 operating mines and 9 development stage projects. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 23:51
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.