Last Updated: 08 Nov 2024
Executive Summary
Wheaton Precious Metals Corp. (WPM) is a leading precious metals streaming and royalty company. The company has a strong financial position with a market capitalization of $29.2 billion and an EBITDA of $843.8 million. WPM's stock price has been volatile in recent months, but the company's fundamentals remain strong. Analysts are generally bullish on WPM, with a consensus target price of $71.56.
Company Overview
Wheaton Precious Metals Corp. is headquartered in Vancouver, Canada. The company acquires the rights to purchase precious metals from mining companies at a fixed price, which is typically below the market price. This allows WPM to generate a steady stream of revenue, regardless of the price of precious metals. WPM has a portfolio of over 20 streaming and royalty agreements with mining companies around the world.
Fundamental Analysis
WPM's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 10% over the past five years. WPM's earnings per share (EPS) have also grown at a CAGR of 15% over the same period. The company's profit margin is 50.4%, which is well above the industry average.
WPM has a strong balance sheet with a debt-to-equity ratio of 0.25. The company also has a large cash balance of $1.2 billion. This gives WPM the financial flexibility to pursue new growth opportunities.
Technical Analysis
WPM's stock price has been volatile in recent months. The stock price hit a 52-week high of $68.64 in April 2023. However, the stock price has since fallen to $64.41. The stock price is currently trading below its 50-day and 200-day moving averages.
The relative strength index (RSI) is a technical indicator that measures the momentum of a stock. The RSI is currently at 45. This indicates that the stock is neither overbought nor oversold.
Short Term Outlook
The short-term outlook for WPM is mixed. The stock price has been volatile in recent months, and it is unclear whether the stock will continue to fall or rebound. However, the company's fundamentals remain strong, and analysts are generally bullish on WPM.
Long Term Outlook
The long-term outlook for WPM is positive. The company is well-positioned to benefit from the growing demand for precious metals. WPM has a strong portfolio of streaming and royalty agreements, and the company is expected to continue to grow its revenue and earnings in the years to come.
Analyst Recommendations
Analysts are generally bullish on WPM. The consensus target price for WPM is $71.56. This represents a potential upside of 11% from the current stock price. Three analysts have a strong buy rating on WPM, eight analysts have a buy rating, three analysts have a hold rating, and no analysts have a sell or strong sell rating.
