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Wheaton Precious Metals (TSE:WPM)
TSX:WPM
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Wheaton Precious Metals
(TSX:WPM)
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Rating:76Outperform
Price Target:
C$143.00
▲(4.11% Upside)
Wheaton Precious Metals' strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust production growth and strategic project developments provide a solid outlook. However, the high valuation and neutral technical indicators suggest some caution. The recent decline in free cash flow growth also warrants attention.
Positive Factors
Negative Factors
Wheaton Precious Metals (WPM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$60.97B
Dividend Yield0.66%
Average Volume (3M)891.67K
Price to Earnings (P/E)55.2
Beta (1Y)0.99
Revenue Growth51.33%
EPS Growth42.31%
CountryCA
Employees44
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.88
Shares Outstanding453,955,320
10 Day Avg. Volume808,618
30 Day Avg. Volume891,674
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue32.67
Enterprise Value/Gross Profit48.63
Enterprise Value/Ebitda44.52
Forecast
1Y Price Target
$171.80Price Target Upside25.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Wheaton Precious Metals Business Overview & Revenue Model
Company DescriptionWheaton Precious Metals Corp. is a leading precious metals streaming company based in Canada. It specializes in the acquisition and management of precious metal streams and royalties, primarily focusing on gold and silver. The company has a diverse portfolio of agreements with mining companies, allowing it to provide upfront capital in exchange for a percentage of the future production of metals, which enables it to benefit from the rising prices of precious metals without the operational risks associated with mining.
How the Company Makes MoneyWheaton Precious Metals generates revenue primarily through its streaming agreements, where it pays an upfront sum to mining companies for the rights to purchase a portion of their future production at a predetermined price. This business model allows WPM to capitalize on metal price increases while minimizing capital expenditure and operational risks. Key revenue streams include the sale of gold and silver, with earnings significantly influenced by market prices and production levels from its partner mines. Additionally, Wheaton has established strategic partnerships with several major mining companies, securing long-term, stable revenue through these agreements. Factors contributing to its earnings also include the operational efficiency of partner mines and the overall demand for precious metals in various industries.
Wheaton Precious Metals Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Wheaton's strong financial performance, robust production growth, and significant project developments, along with a solid financial position and sustainability achievements. While there were some operational challenges at Antamina and concerns about potential tariffs, the positives significantly outweigh the negatives.Q2-2025 Updates
Positive Updates
Record Revenue and Earnings
Wheaton achieved record revenue of $503 million, a 68% increase compared to last year, driven by a 32% rise in commodity prices and a 28% increase in sales volumes. Net earnings rose by 139% to $292 million, and operating cash flow increased by 77% to $450 million.
Strong Production and Growth Prospects
The company recorded production of 159,000 gold equivalent ounces, a 9% increase from the previous year. Key assets like Salobo and Peñasquito contributed significantly, and Wheaton remains on track to achieve annual production guidance of 600,000 to 670,000 GEOs.
Successful Project Developments
Significant progress was made with Blackwater achieving commercial production and Goose successfully delivering its first gold pour. Additionally, the company continues to forecast 40% production growth by 2029.
Strong Financial Position
Wheaton ended the quarter with over $1 billion in cash and a $2 billion undrawn revolving credit facility, providing strong financial flexibility to fund commitments and pursue accretive mineral stream interests.
Sustainability Achievements
Wheaton was recognized among the top 10 companies on Corporate Knights' annual 50 Best Corporate Citizens in Canada and launched its second annual Future of Mining Challenge focused on sustainable water management technologies.
Negative Updates
Operational Challenges at Antamina
Antamina faced a safety-related shutdown in April, leading to lower recoveries and reduced mill throughput. However, production is expected to increase in the latter half of the year.
Tariff Concerns
There were discussions about potential tariffs on gold entering the United States, which could create market volatility and pricing differentials, although Wheaton is insulated from direct impacts.
Company Guidance
In the second quarter of 2025, Wheaton Precious Metals reported record performance metrics, including a revenue of $503 million, marking a 68% increase from the previous year, driven by a 32% rise in commodity prices and a 28% increase in sales volumes. The company produced 159,000 gold equivalent ounces (GEOs) and remains on target to meet its 2025 production guidance of 600,000 to 670,000 GEOs. Wheaton also highlighted significant milestones, such as Blackwater's transition to commercial production and Goose's first gold pour. The company maintains a strong financial position with over $1 billion in cash and a $2 billion undrawn revolving credit facility, ensuring flexibility to fund commitments and pursue additional accretive opportunities. Additionally, Wheaton is committed to its growth strategy, forecasting a 40% production growth by 2029, and continues to prioritize sustainability, as evidenced by its recognition among Canada's top corporate citizens and the launch of its Future of Mining Challenge focused on sustainable water management.Wheaton Precious Metals Financial Statement Overview
Summary
Wheaton Precious Metals demonstrates strong financial health with impressive profitability and a solid balance sheet. The company benefits from high margins and low leverage, providing a stable foundation for growth. However, the recent decline in free cash flow growth suggests a need for careful cash management moving forward.Income Statement
Wheaton Precious Metals shows strong revenue growth with a 14% increase in the TTM period, supported by robust gross and net profit margins of 69.85% and 42.46%, respectively. The EBIT and EBITDA margins are also healthy at 53.31% and 71.01%, indicating efficient operations. However, the company experienced a revenue decline in 2022, which slightly tempers the otherwise positive trajectory.85
Very Positive
Balance Sheet
The balance sheet is exceptionally strong with a very low debt-to-equity ratio of 0.11%, reflecting minimal leverage and financial risk. The return on equity is solid at 8.50%, and the equity ratio is high, indicating a stable financial position. The company maintains a strong equity base, enhancing its financial stability.90
Very Positive
Cash Flow
Operating cash flow is robust, significantly exceeding net income with a ratio of 12.11. However, free cash flow growth has declined by 13.87% in the TTM period, which is a concern. The free cash flow to net income ratio remains strong at 75.08%, indicating good cash generation relative to earnings.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 1.28B | 1.02B | 1.07B | 1.20B | 1.10B |
| Gross Profit | 1.12B | 802.59M | 573.44M | 565.48M | 658.92M | 585.57M |
| EBITDA | 1.22B | 892.93M | 728.46M | 746.15M | 1.01B | 767.82M |
| Net Income | 789.04M | 529.14M | 537.64M | 669.13M | 754.88M | 507.80M |
Balance Sheet | ||||||
| Total Assets | 7.98B | 7.42B | 7.03B | 6.76B | 6.30B | 5.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 818.17M | 546.53M | 696.09M | 226.04M | 192.68M |
| Total Debt | 8.25M | 5.17M | 6.23M | 1.97M | 2.87M | 198.64M |
| Total Liabilities | 256.68M | 165.08M | 45.67M | 42.23M | 46.03M | 242.70M |
| Stockholders Equity | 7.73B | 7.26B | 6.99B | 6.72B | 6.25B | 5.71B |
Cash Flow | ||||||
| Free Cash Flow | 756.07M | 369.25M | 74.94M | 721.76M | 319.18M | 763.62M |
| Operating Cash Flow | 1.35B | 1.03B | 750.81M | 743.42M | 845.14M | 765.44M |
| Investing Cash Flow | -600.16M | -488.30M | -646.65M | -44.30M | -404.22M | 149.65M |
| Financing Cash Flow | -283.75M | -267.39M | -254.24M | -228.89M | -407.61M | -826.90M |
Wheaton Precious Metals Technical Analysis
Neutral
137.36
Price Trends
143.48
Negative
134.43
Positive
118.70
Positive
Market Momentum
-1.28
Positive
39.90
Neutral
12.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPM, the sentiment is Neutral. The current price of 137.36 is below the 20-day moving average (MA) of 149.40, below the 50-day MA of 143.48, and above the 200-day MA of 118.70, indicating a neutral trend. The MACD of -1.28 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 12.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WPM.
Wheaton Precious Metals Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $114.77B | 27.74 | 13.92% | 0.98% | 36.19% | 392.37% | |
79 Outperform | $75.34B | 19.88 | 11.41% | 1.64% | 20.13% | 90.22% | |
76 Outperform | $60.97B | 55.25 | 10.60% | 0.66% | 51.33% | 42.31% | |
74 Outperform | $52.02B | 47.41 | 12.61% | 0.79% | 21.83% | ― | |
73 Outperform | $39.37B | 18.60 | 22.05% | 0.50% | 38.34% | 218.80% | |
66 Neutral | $9.12B | 80.28 | 6.27% | 0.60% | 18.24% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:WPM
Wheaton Precious Metals
137.36
46.21
50.69%
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TSE:K
Kinross Gold
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TSE:OR
Osisko Gold Royalties
47.09
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64.88%
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.