Assessing Wheaton Precious Metals – Beyond Technical Analysis, Focus on Fundamentals

Now trading at a price of $39.76, Wheaton Precious Metals has moved -2.4% so far today.

Over the last year, Wheaton Precious Metals logged a -0.1% change, with its stock price reaching a high of $52.76 and a low of $38.37. Over the same period, the stock underperformed the S&P 500 index by -24.3%. AThe company's 50-day average price was $47.19. Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. Based in Vancouver, Canada, the Large-Cap Basic Materials company has 42 full time employees. Wheaton Precious Metals has offered a 1.5% dividend yield over the last 12 months.

Wider Gross Margins Than the Industry Average of 36.98%:

2018 2019 2020 2021 2022 2023
Revenue (M) $794 $861 $1,096 $1,202 $1,065 $265
Gross Margins 37% 40% 53% 55% 53% 56%
Net Margins 5% 18% 28% 36% 34% 53%
Net Income (M) $41 $153 $307 $427 $363 $141
Free Cash Flow (M) $477 $502 $765 $845 $743 $202
Current Ratio 2.76 2.39 6.48 8.41 23.44 44.99

Wheaton Precious Metals's Valuation Is in Line With Its Sector Averages:

Wheaton Precious Metals has a trailing twelve month P/E ratio of 40.0, compared to an average of 16.53 for the Basic Materials sector. Based on its EPS guidance of $1.2, the company has a forward P/E ratio of 39.3. Furthermore, Wheaton Precious Metals is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.63 is higher than the sector average of 2.07. In conclusion, Wheaton Precious Metals's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.

Wheaton Precious Metals Has an Average Rating of Buy:

The 14 analysts following Wheaton Precious Metals have set target prices ranging from $50.0 to $70.0 per share, for an average of $57.63 with a buy rating. The company is trading -31.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

The largest shareholder is Capital World Investors, whose 7% stake in the company is worth $1,219,817,663.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.