Last Updated: 18 Sep 2024
Executive Summary
Wheaton Precious Metals Corp (WPM) is a leading precious metals streaming company with a market capitalization of $28.26 billion. The company has a strong financial profile with an EBITDA of $843.81 million and a profit margin of 50.4%. WPM's trailing P/E ratio of 49.4 is above the industry average, but its forward P/E ratio of 35.97 indicates potential for growth. The stock is currently trading at $61.7, within its 52-week range of $37.93 to $63.13.
Company Overview
Wheaton Precious Metals is headquartered in Vancouver, Canada. The company acquires the rights to purchase precious metals from mining companies at fixed prices, providing upfront capital to the miners in exchange for a stream of future production. WPM's portfolio includes gold, silver, palladium, and cobalt streams from mines in North and South America, Europe, and Australia.
Fundamental Analysis
Financial Performance: WPM has consistently delivered strong financial results, with revenue growth of 12.9% and quarterly earnings growth of -0.138% year-over-year. The company's EBITDA margin has expanded to 56.8% in the last twelve months.
Valuation: WPM's trailing P/E ratio of 49.4 is above the industry average of 34.6. However, its forward P/E ratio of 35.97 suggests that the market expects the company's earnings to grow in the future.
Dividend: WPM pays a quarterly dividend of $0.61 per share, resulting in a dividend yield of 0.01%.
Technical Analysis
Trend: WPM's stock price has been trending higher in the past year, breaking above its 200-day moving average.
Support and Resistance: The stock is currently trading near its 50-day moving average of $59.32, which could provide support. Resistance levels include the 52-week high of $63.13 and the analyst target price of $67.28.
Momentum: WPM's relative strength index (RSI) is at 55, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, WPM's stock price is likely to be influenced by the overall market sentiment and the performance of the precious metals sector. The company's upcoming earnings report and any news about its streaming agreements could also impact the stock price.
Long Term Outlook
The long-term outlook for WPM is positive. The company's diversified portfolio of precious metals streams provides it with a stable revenue stream. The increasing demand for precious metals as a safe haven asset is expected to drive growth for WPM in the long run.
Analyst Recommendations
Analysts are generally bullish on Wheaton Precious Metals Corp. Out of 14 analysts covering the stock, 8 have a "Buy" rating, 3 have a "Strong Buy" rating, 3 have a "Hold" rating, and none have a "Sell" or "Strong Sell" rating. The median analyst target price is $67.28, implying a potential upside of approximately 9% from the current price.
