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Wheaton Precious Metals (TSE:WPM)
TSX:WPM
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Wheaton Precious Metals
(TSX:WPM)
79Outperform
Positive Factors
Financial Performance
Wheaton had a strong year with record revenue, earnings, and cash flow and its shares are hitting all-time highs.
Growth Prospects
Wheaton continues to point to nearly 40% growth to around 870k GEOs by 2029, reaffirming WPM’s peer-leading volume growth potential.
Liquidity
Wheaton Precious Metals ended the quarter with $818M in cash, no debt, and $2.0B undrawn on its revolver.
Negative Factors
Production Guidance
2025 production guidance misses on gold.
Wheaton Precious Metals (WPM) vs. S&P 500 (SPY)
Market Cap
$51.74B
Dividend Yield0.76%
Average Volume (3M)902.97K
Price to Earnings (P/E)71.3
Beta (1Y)1.22
Revenue Growth28.41%
EPS Growth-0.59%
CountryCA
Employees44
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)1.59
Shares Outstanding453,677,500
10 Day Avg. Volume1,142,540
30 Day Avg. Volume902,968
Financial Highlights & Ratios
PEG Ratio3.98
Price to Book (P/B)N/A
Price to Sales (P/S)26.33
Price to Cash Flow (P/CF)26.50
P/FCF Ratio40.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$112.59Price Target Upside-1.28% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Wheaton Precious Metals Business Overview & Revenue Model
Company DescriptionWheaton Precious Metals Corp. is a leading precious metals streaming company headquartered in Canada. The company operates within the mining sector, focusing primarily on the acquisition of precious metal purchase agreements, known as 'streams,' from mining companies. These streams often involve gold, silver, and occasionally palladium and cobalt, allowing Wheaton to purchase a portion of a mine's production at a predetermined fixed cost, providing both parties with financial benefits and risk mitigation.
How the Company Makes MoneyWheaton Precious Metals generates revenue through its streaming agreements, which provide the company with the right to purchase a specified percentage of a mine's precious metal production at a fixed, reduced cost. This model allows Wheaton to benefit from the sale of these metals at market prices, capturing the spread between the purchase price and the market price. Key factors contributing to its earnings include the strategic selection of streams from high-quality mines, diversification of its portfolio across multiple geographies and operators, and maintaining partnerships with leading mining companies. Additionally, Wheaton's business model significantly reduces its operational risks and capital expenditure compared to traditional mining companies, as it does not own or operate the mines directly.
Wheaton Precious Metals Financial Statement Overview
Summary
Wheaton Precious Metals shows strong profitability with high margins and revenue growth. The balance sheet is robust with low leverage and high equity, though increased capital expenditures have impacted free cash flow.Income Statement
The income statement shows strong profitability with a high gross profit margin of 60.14% and a net profit margin of 50.05% in the TTM period. Revenue has grown by 19.87% from the previous year, indicating positive growth trends. Additionally, EBIT and EBITDA margins are robust at 54.41% and 76.58% respectively, showcasing efficient operations.85
Very Positive
Balance Sheet
The balance sheet is exceptionally strong with a very low debt-to-equity ratio of 0.78%, indicating low leverage. The equity ratio is high at 98.29%, reflecting financial stability. Return on equity is impressive at 8.39%, demonstrating effective use of shareholder funds. The company's assets are primarily financed through equity, minimizing financial risk.90
Very Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow due to increased capital expenditures, resulting in negative free cash flow for the TTM period. However, the operating cash flow to net income ratio is solid at 1.56, indicating strong cash generation relative to net income. Despite short-term fluctuations, the company maintains positive operating cash flow.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.22B | 1.02B | 1.07B | 1.20B | 1.10B | 861.33M | Gross Profit |
| 732.37M | 573.44M | 565.48M | 658.92M | 585.57M | 345.95M | EBIT |
| 662.42M | 505.27M | 511.90M | 600.89M | 519.87M | 291.62M | EBITDA |
| 932.44M | 755.19M | 746.15M | 1.01B | 767.82M | 380.74M | Net Income Common Stockholders |
| 609.43M | 537.64M | 669.13M | 754.88M | 507.80M | 86.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 279.66M | 546.53M | 696.09M | 226.04M | 192.68M | 103.99M | Total Assets |
| 2.29B | 7.03B | 6.76B | 6.30B | 5.96B | 6.28B | Total Debt |
| 502.37M | 6.23M | 1.97M | 2.87M | 198.64M | 878.75M | Net Debt |
| 222.71M | -540.30M | -694.12M | -223.17M | 5.95M | 774.77M | Total Liabilities |
| 508.34M | 45.67M | 42.23M | 46.03M | 242.70M | 952.09M | Stockholders Equity |
| 1.78B | 6.99B | 6.72B | 6.25B | 5.71B | 5.33B |
| Cash Flow | Free Cash Flow | ||||
| -49.35M | 74.94M | 721.76M | 319.18M | 763.62M | 498.41M | Operating Cash Flow |
| 950.34M | 750.81M | 743.42M | 845.14M | 765.44M | 501.62M | Investing Cash Flow |
| -827.37M | -646.65M | -44.30M | -404.22M | 149.65M | 10.63M | Financing Cash Flow |
| -262.83M | -254.24M | -228.89M | -407.61M | -826.90M | -484.19M |
Wheaton Precious Metals Technical Analysis
Positive
114.05
Price Trends
102.02
Positive
93.50
Positive
88.05
Positive
Market Momentum
3.42
Negative
72.94
Negative
83.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPM, the sentiment is Positive. The current price of 114.05 is above the 20-day moving average (MA) of 107.80, above the 50-day MA of 102.02, and above the 200-day MA of 88.05, indicating a bullish trend. The MACD of 3.42 indicates Negative momentum. The RSI at 72.94 is Negative, neither overbought nor oversold. The STOCH value of 83.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WPM.
Wheaton Precious Metals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $51.74B | 71.34 | 7.43% | 0.76% | 28.41% | -0.59% | |
74 Outperform | $44.48B | 58.75 | 9.38% | 0.88% | -7.22% | ― | |
71 Outperform | C$5.79B | 260.03 | 1.33% | 0.83% | 6.02% | ― | |
70 Outperform | C$1.10B | 11.03 | 19.20% | 1.51% | -27.13% | 987.10% | |
68 Neutral | $3.23B | 167.17 | 1.00% | 0.72% | -0.35% | -65.11% | |
47 Neutral | $2.49B | -2.97 | -22.82% | 3.51% | 4.13% | -28.53% | |
33 Underperform | C$2.51M | ― | -15.83% | ― | ― | -1.20% |
* Basic Materials Sector Average
Performance Comparison
TSE:WPM
Wheaton Precious Metals
114.05
44.15
63.16%
TSE:SSL
Sandstorm Gold
11.00
3.80
52.86%
TSE:OR
Osisko Gold Royalties
31.10
9.28
42.50%
TSE:FNV
Franco-Nevada
230.96
72.27
45.54%
TSE:ALS
Altius Minerals
23.84
3.12
15.06%
TSE:RGLD
Red Lake Gold Inc
0.05
-0.02
-28.57%
Wheaton Precious Metals Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 8.83% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in 2024 with record revenue and growth, exceeding production guidance, and strategic investments resulting in a positive outlook. However, challenges such as the impairment charge on the Voisey's Bay cobalt stream and anticipated production declines in certain segments were noted. Overall, the positive aspects significantly outweigh these challenges.Highlights
Record Revenue and Growth
Wheaton Precious Metals achieved record revenue, adjusted net earnings, and operating cash flows in 2024. Revenue increased 26% to approximately $1.3 billion, and gross margin increased by 21% compared to the prior year.
Exceeding Production Guidance
Annual production of 635,000 gold equivalent ounces exceeded the top end of the company's production guidance for the year, driven by strong performance at Salobo, Constancia, and Penasquito.
New Investments and Portfolio Diversification
Wheaton acquired four new investments, including a gold stream on Montage Gold's Kone project, enhancing and diversifying its portfolio by expanding geographic presence and strengthening strategic partnerships.
Projected Growth in Production
Wheaton's five-year production forecast estimates a 40% increase to 870,000 gold equivalent ounces by 2029, supported by both organic growth and new asset production.
Increased Dividend Payout
Wheaton announced a 6.5% increase to its quarterly dividend, continuing its position as a leader in payout ratios within the precious metals sector.
Recognition in Sustainability
Wheaton was recognized by Corporate Knights as one of the 2025 Global 100 Most Sustainable Corporations and upgraded to a triple-A ESG rating by MSCI, highlighting its commitment to responsible operations.
Lowlights
Impairment Charge on Voisey's Bay Cobalt Stream
Wheaton recognized an impairment charge of $109 million due to the sustained decline in market cobalt prices, impacting net earnings.
Expected Decline in 2025 Gold Production at Constancia
Hudbay announced that gold production in 2025 is expected to be lower than 2024 levels due to the depletion of the Pampacancha deposit.
Transition Challenges at Penasquito
Coproduct production at Penasquito is expected to decline in 2025 as mining transitions to pits with lower silver grades.
Increased General and Administrative Expenses
G&A expenses for 2025 are expected to increase to $50 million to $55 million, largely due to costs associated with the Future of Mining Challenge and the expiring ATM program.
Company Guidance
In the 2024 fourth quarter and full-year results call, Wheaton Precious Metals reported record financial performance, with revenue reaching approximately $1.3 billion, driven by a 20% increase in realized commodity prices and a 5% rise in sales volumes. The company achieved record production of 635,000 gold equivalent ounces, surpassing its annual guidance. The call highlighted a 6.5% increase in the quarterly dividend and emphasized Wheaton's unmatched growth profile, projecting a 40% increase in annual production to 870,000 gold equivalent ounces by 2029. The company anticipates a stable production forecast for Salobo and expects inaugural production from several projects, including Blackwater and Goose, in 2025. Wheaton's financial flexibility is strengthened by a cash balance of $818 million and an undrawn $2 billion revolving credit facility, allowing it to support ongoing and future projects. Additionally, the company has been recognized for its sustainability efforts, being one of the only two resource-focused companies named in the 2025 Global 100 Most Sustainable Corporations.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.