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Wheaton Precious Metals (TSE:WPM)
TSX:WPM
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Wheaton Precious Metals
(TSX:WPM)
Rating:75Outperform
Price Target:
C$143.00
▲(17.41%Upside)
Positive Factors
Dividend Increase
Wheaton has increased its quarterly dividend by 6.5%, now yielding 0.9%.
Financial Performance
WPM had a strong year with record revenue, earnings, and cash flow and its shares are hitting all-time highs.
Production Growth
WPM's pipeline has continued to improve, and it has a number of quality projects coming online, positioning it to increase production significantly over the next five years.
Negative Factors
Production Guidance
2025 production guidance misses on gold.
Sales Performance
FY24 sales of 532kGEO missed the 538kGEO estimate.
Wheaton Precious Metals (WPM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$54.73B
Dividend Yield0.71%
Average Volume (3M)837.10K
Price to Earnings (P/E)63.2
Beta (1Y)1.06
Revenue Growth37.40%
EPS Growth8.55%
CountryCA
Employees44
SectorBasic Materials
Sector Strength68
IndustryGold
Share Statistics
EPS (TTM)0.76
Shares Outstanding453,835,600
10 Day Avg. Volume1,004,743
30 Day Avg. Volume837,100
Financial Highlights & Ratios
PEG Ratio-2.21
Price to Book (P/B)2.62
Price to Sales (P/S)0.00
P/FCF Ratio24.42
Enterprise Value/Market Cap0.31
Enterprise Value/Revenue3.32
Enterprise Value/Gross Profit17.82
Enterprise Value/Ebitda4.54
Forecast
1Y Price Target
$124.29Price Target Upside2.04% Upside
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. Based in Canada, the company primarily operates in the mining sector, focusing on the acquisition, development, and sale of precious metals like gold, silver, and palladium. Wheaton Precious Metals provides upfront financing to mining companies in exchange for the right to purchase a fixed percentage of the produced metals, typically at a lower price than the market value.
How the Company Makes MoneyWheaton Precious Metals makes money through a business model known as 'streaming.' The company enters into agreements with mining companies to provide capital in exchange for the right to purchase a portion of the mined precious metals, such as gold, silver, and palladium, at a predetermined lower price. This allows Wheaton to acquire these metals at a reduced cost and sell them at market prices, capturing the margin as profit. Key revenue streams include these streaming agreements, which are supported by strategic partnerships with mining firms globally. The company's earnings are significantly influenced by the market prices of gold, silver, and other precious metals, as well as its ability to identify lucrative streaming opportunities and negotiate favorable agreements.
Wheaton Precious Metals Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 6.13%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong start to the year for Wheaton Precious Metals, with record revenue, earnings, and cash flow, driven by strong production performance, particularly at Salobo, and the successful start-up of Blackwater. The company also received recognition for its sustainability efforts and increased its dividend. However, there were some challenges, including a decrease in production at Constancia and timing delays between production and sales. Overall, the highlights significantly outweigh the lowlights, demonstrating positive momentum and growth prospects.Q1-2025 Updates
Positive Updates
Record Quarterly Revenue, Earnings, and Cash Flow
Wheaton Precious Metals achieved record quarterly revenue of $470 million, an increase of 59% compared to the prior year. Adjusted net earnings amounted to $251 million, a 53% increase, and quarterly cash flow from operations reached $361 million, a 65% increase compared to the prior year.
Strong Production Performance
Salobo delivered over 71,300 ounces of attributable gold production, a 16% increase compared to Q1 2024. The Blackwater Mine achieved its first gold and silver pour in January and announced commercial production in May.
Sustainability Recognition
Wheaton was recognized among Corporate Knight's 100 Most Sustainable Corporations in the World for 2025, highlighting its commitment to responsible operations and community investments.
Dividend Increase
Declared a quarterly dividend of $0.165 per share, an increase of 6.5% compared to Q1 of 2024.
Negative Updates
Decrease in Production at Constancia
Constancia produced over 550,000 ounces of attributable silver and 4,900 ounces of attributable gold, a decrease of approximately 13% and 65%, respectively, compared to Q1 2024.
Challenges in Timing of Sales
Sales volumes were 161,000 GEOs, with approximately 136,000 GEOs produced but not yet delivered, indicating a timing delay between production and sales.
Company Guidance
In the 2025 first quarter earnings call, Wheaton Precious Metals reported a strong start to the fiscal year with several key metrics indicating robust performance. The company achieved record quarterly revenue of $470 million, marking a 59% increase compared to the prior year, driven by a 36% increase in realized commodity prices and a 16% rise in sales volume. Adjusted net earnings reached a quarterly record of $251 million, a 53% increase from the previous year, while operating cash flow hit a record $361 million, up 65% year-over-year. The company declared a dividend of $0.165 per share, a 6.5% increase from Q1 2024. Wheaton's production for the quarter was 151,000 gold equivalent ounces (GEOs), a slight 4% decrease from Q1 2024, attributed to lower production at Peñasquito and Constancia, partially offset by gains at Salobo and Antamina. Sales volumes, however, increased by 16% to 161,000 GEOs. The company maintains a strong financial position with a cash balance of $1.1 billion and an undrawn $2 billion revolving credit facility, enabling it to fund growth and explore further accretive streaming opportunities. Looking ahead, Wheaton anticipates significant growth, projecting a 40% increase in annual production by 2029, driven by both existing operations and new development projects.Wheaton Precious Metals Financial Statement Overview
Summary
Wheaton Precious Metals exhibits strong financial performance with robust profitability, minimal leverage, and substantial cash flow generation. The company benefits from notable revenue growth and operational efficiency, although dependency on commodity prices remains a risk.Income Statement
Wheaton Precious Metals demonstrates robust profitability with a strong gross profit margin of 65.1% and a net profit margin of 42.4% in the TTM period. Revenue growth is notable at 13.5% over the past year, driven by industry demand. The company maintains efficiency with an EBIT margin of 51.7% and an EBITDA margin of 71.2% in TTM, reflecting operational excellence. However, fluctuations in commodity prices could impact future revenue.85
Very Positive
Balance Sheet
The balance sheet is exceptionally strong, with a low debt-to-equity ratio of 0.001, indicating minimal leverage and financial risk. A high equity ratio of 96.5% in TTM underscores financial stability and investor confidence. Return on equity stands at 8.3%, hinting at room for improvement in capital efficiency. Overall, the company's financial health is marked by solid equity backing and minimal liabilities.90
Very Positive
Cash Flow
Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.89, showcasing efficient cash conversion from earnings. Free cash flow has grown significantly by 137.7% YoY, enhancing liquidity. The free cash flow to net income ratio of 1.42 in TTM indicates strong cash generation relative to net income. Nonetheless, high capital expenditures could constrain future free cash flow.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.46B | 1.28B | 1.02B | 1.07B | 1.20B | 1.10B | Gross Profit |
| 950.10M | 802.59M | 573.44M | 565.48M | 658.92M | 585.57M | EBIT |
| 753.26M | 620.83M | 505.27M | 511.90M | 600.89M | 519.87M | EBITDA |
| 1.04B | 892.93M | 728.46M | 746.15M | 1.01B | 767.82M | Net Income Common Stockholders |
| 619.08M | 529.14M | 537.64M | 669.13M | 754.88M | 507.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.09B | 818.17M | 546.53M | 696.09M | 226.04M | 192.68M | Total Assets |
| 7.74B | 7.42B | 7.03B | 6.76B | 6.30B | 5.96B | Total Debt |
| 8.09M | 5.17M | 6.23M | 1.97M | 2.87M | 198.64M | Net Debt |
| -1.08B | -813.00M | -540.30M | -694.12M | -223.17M | 5.95M | Total Liabilities |
| 273.15M | 165.08M | 45.67M | 42.23M | 46.03M | 242.70M | Stockholders Equity |
| 7.47B | 7.26B | 6.99B | 6.72B | 6.25B | 5.71B |
| Cash Flow | Free Cash Flow | ||||
| 877.77M | 369.25M | 74.94M | 721.76M | 319.18M | 763.62M | Operating Cash Flow |
| 1.17B | 1.03B | 750.81M | 743.42M | 845.14M | 765.44M | Investing Cash Flow |
| -120.57M | -488.30M | -646.65M | -44.30M | -404.22M | 149.65M | Financing Cash Flow |
| -268.67M | -267.39M | -254.24M | -228.89M | -407.61M | -826.90M |
Wheaton Precious Metals Technical Analysis
Positive
121.80
Price Trends
114.88
Positive
106.47
Positive
95.66
Positive
Market Momentum
2.55
Positive
56.34
Neutral
29.87
Neutral
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 121.8 is above the 20-day moving average (MA) of 118.96, above the 50-day MA of 114.88, and above the 200-day MA of 95.66, indicating a bullish trend. The MACD of 2.55 indicates Positive momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.87 is Neutral, 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $80.92B | 24.31 | 11.45% | 1.37% | 32.68% | 419.46% | |
77 Outperform | $47.13B | 14.77 | 9.70% | 2.00% | 19.13% | 66.78% | |
77 Outperform | $24.88B | 14.78 | 18.12% | 0.81% | 30.84% | 188.80% | |
75 Outperform | $54.73B | 63.17 | 8.51% | 0.71% | 37.40% | 8.55% | |
74 Outperform | $43.36B | 50.18 | 10.19% | 0.92% | -7.22% | ― | |
69 Neutral | $6.59B | 149.68 | 2.50% | 0.72% | 12.78% | ― | |
51 Neutral | $2.04B | -1.15 | -21.24% | 3.95% | 2.91% | -30.44% |
* Basic Materials Sector Average
Performance Comparison
TSE:WPM
Wheaton Precious Metals
121.80
48.99
67.29%
TSE:OR
Osisko Gold Royalties
35.36
12.56
55.06%
TSE:K
Kinross Gold
20.87
10.69
105.07%
TSE:FNV
Franco-Nevada
225.50
63.76
39.42%
TSE:ABX
Barrick Mining
27.67
5.65
25.65%
TSE:AEM
Agnico Eagle
162.48
73.93
83.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.