Wheaton Precious Metals Corp Common Shares (Canada) (WPM)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $75 million in annual free cash flow (0.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 18.4% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 88.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($37) with negative 274% margin of safety—limited downside protection

AI Analysis

Wheaton Precious Metals Corp Common Shares (Canada) is a large-cap basic materials company valued at $63.4 billion. The business generates $2.3 billion in annual revenue with a 24.1% net margin and $75 million in free cash flow. From a quality standpoint, Wheaton shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 88.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 43.7x multiple, with trades far above its Graham Number ($37) with no margin of safety. Growth dynamics show revenue growing at 127.3% and profit growth of 533.3%. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Wheaton's 127% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $75 million in annual free cash flow (0.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 44x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer