Wheaton Precious Metals Corp. (WPM) Shares: Are They Risky Or Cheap?

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Wheaton Precious Metals Corp. (NYSE:WPM) finished Wednesday with a subtraction of -$0.04 to close at $31.68, a downside of -0.13 percent. An average of 2,749,420 shares of common stock have been traded in the last five days. There was a fall of -$0.98 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 2,582,510 shares traded, while the 50-day average volume stands at 2,714,542.

WPM stock has decreased by -1.37% in the last month. The company shares reached their 1-month lowest point of $29.66 on 09/01/22. With the stock rallying to its 52-week high on 04/20/22, shares of the company touched a low of $29.66 and a high of $51.90 in 52 weeks. It has reached a new high 17 times so far this year and lost -26.21% or -$11.25 in price. In spite of this, the price is down -38.97% from the 52-week high.


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Valuation Metrics

Wheaton Precious Metals Corp. (WPM) has a trailing price-to-earnings (P/E) ratio of 19.52. The stock’s beta is 0.55. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 12.20, the price-to-book (PB) ratio at 2.23, and the price-to-cash flow ratio at 20.20.

The company has a payout ratio of 36.90%. The company’s most recent quarterly dividend payment was $0.15 a share, without any change from last year. Its latest increase dividend $0.01 reported on Monday August 16 2021.

Financial Health

The quick ratio of Wheaton Precious Metals Corp. for the three months ended June 29 was 21.30, and the current ratio was 21.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $658.92 million compared to revenue of $1.2 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Wheaton Precious Metals Corp.’s return on assets was 11.60%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $86.14 million in the quarter, while revenues were shrunk -395.84%. The analyst consensus anticipated Wheaton Precious Metals Corp.’s latest quarter earnings to come in at $0.32 per share, but it turned out to be $0.33, a 3.10% surprise. For the quarter, EBITDA amounted to $215.92 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Wheaton Precious Metals Corp. (WPM) price momentum. RSI 9-day as of the close on 21 September was 44.77%, suggesting the stock is Neutral, with historical volatility in this time frame at 32.92%.

As of today, WPM’s price is $31.92 -3.00% or -$0.98 from its 5-day moving average. WPM is currently trading -2.58% lower than its 20-day SMA and -30.48% lower than its 100-day SMA. However, the stock’s current price level is -8.62% below the SMA50 and -20.50% below the SMA200.

The stochastic %K and %D were 51.67% and 53.68%, respectively, and the average true range (ATR) was 1.15. With the 14-day stochastic at 45.66% and the average true range at 1.13, the RSI (14) stands at 45.15%. The stock has reached -0.46 on the 9-day MACD Oscillator while the 14-day reading was at -0.04.

Analyst Ratings

Goldman launched coverage on Wheaton Precious Metals Corp. (NYSE: WPM) in its analyst report released on September 12, 2022. The firm assigned the stock a Buy rating.

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