Wheaton Precious Metals Corp. (WPM): What Does Valuation Ratios Tell Us?

Wheaton Precious Metals Corp. (NYSE:WPM) saw a downside of -1.62% to $49.21 after subtracting -$0.81 on Wednesday. The 5-day average trading volume is 1,973,423 shares of the company’s common stock. It has gained $52.76 in the past week and touched a new high 1 time within the past 5 days. An average of 2,376,216 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,534,944.

WPM’s 1-month performance is 6.79% or $4.01 on its low of $44.60 reached on 03/21/23. The company’s shares have touched a 52-week low of $28.62 and high of $52.76, with the stock’s rally to the 52-week high happening on 04/13/23. YTD, WPM has achieved 25.92% or $10.23 and has reached a new high 25 times. However, the current price is down -6.73% from the 52-week high price.

Valuation Metrics

WPM stock has a beta of 0.58. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 21.61 while the price-to-book (PB) in the most recent quarter is 3.37, with the price to cash flow ratio at 36.91.

Wheaton Precious Metals Corp.’s quick ratio for the period ended December 30 was 23.10, with the current ratio over the same period at 23.40. In terms of profitability, the gross margin trailing 12 months is 53.10%. The trailing 12-month EBITDA margin is 69.77% while for the period ending December 30, Wheaton Precious Metals Corp.’s operating margin was 48.10%. The firm’s gross profit as reported stood at $565.48 million against revenue of $1.07 billion.

Earnings Surprise

For the quarterly period ending December 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -395.84% to $86.14 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected WPM to announce $0.25 per share in earnings in its latest quarter, but it posted $0.23, representing a -8.00% surprise. EBITDA for the quarter stood at more than $144.23 million. WPM stock balance sheet for the quarter ending December 30 shows that total liabilities totaled 42.23 million, with total debt at $1.97 million.

Let’s look briefly at Wheaton Precious Metals Corp. (WPM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 18 April was 52.35% to suggest the stock is trending Neutral, with historical volatility in this time period at 30.85%.

The stock’s 5-day moving average is $50.43, reflecting a -2.88% or -$1.46 change from its current price. WPM is currently trading +9.46% above its 20-day SMA, +29.08% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +12.89% and SMA200 by+33.02%.

Stochastic %K and %D was 42.63% and 57.00% and the average true range (ATR) pointed at 1.38. The RSI (14) points at 57.18%, while the 14-day stochastic is at 31.27% with the period’s ATR at 1.37. The stock’s 9-day MACD Oscillator is pointing at -0.41 and -0.04 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for WPM stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate WPM as a “sell,”, while 3 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 13 have offered a “buy” rating.

What is WPM’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $42.00 and a high of $60.00, with their median price target at $52.58. Looking at these predictions, the average price target given by analysts is for Wheaton Precious Metals Corp. (WPM) stock is $52.27.

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