Wheaton Precious Metals (NYSE:WPM) stock appears appealing but unpredictable – making it a difficult choice to acquire at its present price of approximately $76. We believe there is little reason for worry regarding WPM stock, which makes it appealing yet highly susceptible to negative events due to its exceedingly high valuation.
We reach our assessment by analyzing the current valuation of WPM stock compared to its operational performance over recent years, as well as its current and historical financial status. Our evaluation of Wheaton Precious Metals based on key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company has a very robust operational performance and financial health, as explained below. Nevertheless, if you are looking for upside with less volatility than individual stocks, the Trefis High-Quality portfolio provides an alternative – having surpassed the S&P 500 and delivered returns exceeding 91% since its launch.
How Does Wheaton Precious Metals’ Valuation Compare to The S&P 500?
Based on what you pay per dollar of sales or profit, WPM stock seems very costly in relation to the wider market.
• Wheaton Precious Metals holds a price-to-sales (P/S) ratio of 30.5 compared to a figure of 2.8 for the S&P 500
• Moreover, the company’s price-to-free cash flow (P/FCF) ratio stands at 39.1 versus 17.6 for the S&P 500
• Additionally, it has a price-to-earnings (P/E) ratio of 56.0 compared to the benchmark’s 24.5
How Have Wheaton Precious Metals’ Revenues Changed Over Recent Years?
Wheaton Precious Metals’ Revenues have experienced notable growth in recent years.
• Wheaton Precious Metals has witnessed its top line grow at an average rate of 2.0% over the last 3 years (compared to an increase of 6.2% for the S&P 500)
• Its revenues have increased by 29.7% from $1.0 Bil to $1.3 Bil in the last 12 months (in contrast to a growth of 5.3% for the S&P 500)
• Additionally, its quarterly revenues rose by 38.1% to $381 Mil in the most recent quarter from $313 Mil a year prior (versus a 4.9% improvement for the S&P 500)
How Profitable Is Wheaton Precious Metals?
Wheaton Precious Metals’ profit margins are significantly higher than most firms within the Trefis coverage universe.
• Wheaton Precious Metals’ Operating Income over the last four quarters reached $669 Mil, which reflects a remarkably high Operating Margin of 55.0% (compared to 13.1% for the S&P 500)
• Wheaton Precious Metals’ Operating Cash Flow (OCF) during this period was $950 Mil, indicating a notably high OCF Margin of 78.1% (compared to 15.7% for the S&P 500)
• For the last four-quarter timeframe, Wheaton Precious Metals’ Net Income was $609 Mil – suggesting a very high Net Income Margin of 50.1% (compared to 11.3% for the S&P 500)
Does Wheaton Precious Metals Seem Financially Stable?
Wheaton Precious Metals’ balance sheet appears solid.
• Wheaton Precious Metals’ Debt stood at $5.7 Mil at the end of the most recent quarter, while its market capitalization is $36 Bil (as of 5/13/2025). This indicates a very strong Debt-to-Equity Ratio of 0.0% (compared to 21.5% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable]
• Cash (including cash equivalents) accounts for $818 Mil of the $7.4 Bil in Total Assets for Wheaton Precious Metals. This results in a moderate Cash-to-Assets Ratio of 9.4% (compared to 15.0% for the S&P 500)
How Resilient Is WPM Stock During A Downturn?
WPM stock has proven to be more resilient than the benchmark S&P 500 index during certain recent downturns. While investors hope for a gentle landing by the U.S. economy, how severe could things become if another recession strikes? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and following the last six market crashes.
Inflation Shock (2022)
• WPM stock declined 43.8% from a high of $51.71 on 20 April 2022 to $29.08 on 26 September 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500
• The stock completely rebounded to its pre-Crisis peak by 13 April 2023
• Since then, the stock has risen to a high of $85.77 on 11 May 2025 and currently trades around $76
Covid Pandemic (2020)
• WPM stock fell 28.7% from a peak of $33.30 on 24 February 2020 to $23.74 on 19 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 13 April 2020
Global Financial Crisis (2008)
• WPM stock decreased 86.7% from a peak of $19.50 on 14 March 2008 to $2.59 on 20 November 2008, in contrast to a peak-to-trough drop of 56.8% for the S&P 500
• The stock successfully returned to its pre-Crisis peak by 30 April 2010
Putting Everything Together: What It Means For WPM Stock
In conclusion, Wheaton Precious Metals’ performance across the parameters outlined above is as follows:
• Growth: Very Strong
• Profitability: Extremely Strong
• Financial Stability: Very Strong
• Downturn Resilience: Strong
• Overall: Very Strong
Therefore, despite its exceedingly high valuation, the stock seems appealing but unpredictable, which reinforces our conclusion that WPM is a difficult stock to acquire.
Not entirely content with the volatile nature of WPM stock? The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a history of consistently outperforming the S&P 500 over the past four years. What accounts for this? In aggregate, HQ Portfolio stocks have yielded superior returns with reduced risk compared to the benchmark index; it has proven to be less of a roller-coaster ride, as demonstrated by HQ Portfolio performance metrics.
Read the full article here
