Wheaton Precious Metals (WPM) AI Stock Analysis

• Market Cap: C$92.04B
• Dividend Yield: 0.55%
• Average Volume (3M): 704.23K
• Price to Earnings (P/E): 65.8
• Beta (1Y): 1.26
• Revenue Growth: 54.48%
• EPS Growth: 68.44%
• Country: US
• Employees: 44
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.84
• Shares Outstanding: 454,017,880
• 10 Day Avg. Volume: 805,151
• 30 Day Avg. Volume: 704,227
• PEG Ratio: -28.72
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 19.88
• P/FCF Ratio: 69.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$204.07
• Price Target Upside: 0.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$221.00 ▲(8.81% Upside)

Score is driven primarily by strong financial performance (high margins and extremely low leverage) and a constructive earnings update with robust production/financial momentum and strong liquidity. Technicals are supportive but overbought signals add near-term risk, while valuation is the largest headwind due to a high P/E and low dividend yield.

Positive Factors

Asset-light streaming model

Wheaton's streaming model is durable: it earns production-linked revenue without operating mines, reducing capital intensity and operational risk. Upfront payments secure long-term metal offtake, enabling scalable earnings and predictable margin capture as partner mines produce over decades.

High and sustainable profitability

Exceptionally high gross and net margins reflect the economics of fixed-price streams and low operating overhead. These margins provide durable cash generation and resilience through commodity cycles, supporting reinvestment in new streams and stable shareholder returns over the medium term.

Robust balance sheet and liquidity

Strong liquidity and minimal leverage give Wheaton flexibility to fund new streaming transactions and absorb shocks. A large cash balance plus an undrawn facility supports disciplined capital deployment, deal optionality, and downside protection through multi-year industry cycles.

Negative Factors

Declining free cash flow growth

Negative FCF growth signals rising cash demands or timing differences in investments and payouts. Over months this can constrain the pace of new streams or require higher external financing, reducing optionality and increasing sensitivity to capital allocation choices.

Operational counterparty risks

As a streamer Wheaton's volumes depend on partner mine operations. Social unrest, blockades, or grade transitions can reduce deliveries and extend payback on upfront funding. These partner-specific risks persist and can materially affect long-term production and revenue visibility.

Revenue sensitivity to commodity and production cycles

Wheaton's revenue and cash flows materially track miner output and metal prices. Past revenue declines highlight cyclicality: sustained lower production or metal prices would compress revenue and cash available for new streams, making growth and distributions more volatile over time.

Wheaton Precious Metals Business Overview & Revenue Model

Company Description

Wheaton Precious Metals Corp., a streaming company, primarily sells precious metals in Canada and internationally. The company sells gold, silver, palladium, and cobalt deposits. It has a portfolio of interests in the 23 operating mines and 13 development 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.

How the Company Makes Money

Wheaton Precious Metals generates revenue primarily through its streaming agreements with mining companies. These agreements involve providing upfront payments to miners in exchange for the right to purchase a portion of their future gold and silver production at a fixed price, often at a significant discount to market rates. Key revenue streams include the sale of the precious metals acquired through these streams, which are then sold on the open market. Additionally, Wheaton benefits from the price appreciation of gold and silver, as higher market prices directly enhance the profitability of its streams. The company's financial success is also bolstered by strategic partnerships with established mining operators, allowing it to secure valuable production agreements while minimizing operational risks.

Wheaton Precious Metals Financial Statement Overview

Summary

Strong overall fundamentals: very high profitability (TTM gross margin 67.19%, net margin 47.46%) and a very strong balance sheet (debt-to-equity 0.0011, equity ratio 96.12%). Cash flow is the main offset, with negative free cash flow growth (-12.06%) despite strong operating cash generation.

Income Statement

Wheaton Precious Metals shows strong profitability with a high gross profit margin of 67.19% and a net profit margin of 47.46% for the TTM. Revenue growth rate is robust at 10.11%, indicating a positive trajectory. The EBIT and EBITDA margins are also impressive at 56.70% and 73.39%, respectively, reflecting efficient operations. However, the company experienced a revenue decline in previous years, which is a potential risk.

Balance Sheet

The balance sheet is very strong, with a minimal debt-to-equity ratio of 0.0011, indicating low leverage and financial stability. The return on equity is solid at 10.62%, showcasing effective use of equity. The equity ratio stands at 96.12%, highlighting a strong equity base relative to total assets.

Cash Flow

Cash flow performance is mixed. The operating cash flow to net income ratio is high at 9.70, suggesting strong cash generation relative to net income. However, free cash flow growth is negative at -12.06%, indicating a decline in free cash flow. The free cash flow to net income ratio is moderate at 0.56, showing reasonable cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.28B	1.02B	1.07B	1.20B	1.10B
Gross Profit	1.32B	802.59M	573.44M	565.48M	658.92M	585.57M
EBITDA	1.46B	892.93M	755.19M	903.26M	1.01B	763.47M
Net Income	1.00B	529.14M	537.64M	669.13M	754.88M	507.80M
Balance Sheet
Total Assets	8.42B	7.42B	7.03B	6.76B	6.30B	5.96B
Cash, Cash Equivalents and Short-Term Investments	1.16B	818.17M	546.53M	696.09M	226.04M	192.68M
Total Debt	7.99M	5.17M	6.23M	1.97M	2.87M	198.64M
Total Liabilities	326.76M	165.08M	45.67M	42.23M	46.03M	242.70M
Stockholders Equity	8.09B	7.26B	6.99B	6.72B	6.25B	5.71B
Cash Flow
Free Cash Flow	664.89M	369.25M	74.94M	721.76M	319.18M	763.62M
Operating Cash Flow	1.48B	1.03B	750.81M	743.42M	845.14M	765.44M
Investing Cash Flow	-727.53M	-488.30M	-646.65M	-44.30M	-404.22M	149.65M
Financing Cash Flow	-286.96M	-267.39M	-254.24M	-228.89M	-407.61M	-826.90M

Wheaton Precious Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 203.1 is above the 20-day moving average (MA) of 182.22, above the 50-day MA of 164.83, and above the 200-day MA of 138.70, indicating a bullish trend. The MACD of 10.94 indicates Negative momentum. The RSI at 78.42 is Negative, neither overbought nor oversold. The STOCH value of 78.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUG	82 Outperform	C$28.54B	29.68	55.69%	2.47%	57.32%	126.96%
AEM	80 Outperform	C$148.36B	30.83	15.67%	0.91%	38.72%	250.70%
ABX	80 Outperform	C$118.69B	24.27	14.63%	1.17%	21.76%	129.56%
AGI	77 Outperform	C$24.55B	32.98	14.27%	0.25%	34.64%	115.75%
WPM	76 Outperform	C$92.04B	65.81	13.05%	0.55%	54.48%	68.44%
FNV	72 Outperform	C$68.57B	53.36	14.17%	0.72%	44.76%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%