Wheaton Precious Metals stock is oversold and looks to be an interesting swing long setup. I took a long entry in my personal trading account.
Wheaton Precious Metals Stock Chart
One of the most interesting features on the chart is how each time the price traded down to its current level, Wheaton Precious Metals stock did a big swing move up. Four times in 2017, WPM has bounced off the support zone between $18.80 and $18.90.
The positive divergence between large players volume and price is striking. The stock may have large buyers off its current level. Unfortunately, the Twiggs Money Flow is bearish showing the stock is under distribution. It will be interesting to see which signal trumps, the large players volume or the Twiggs Money Flow. It is probably a good idea to wait for a consolidation before taking a long entry.
Wheaton Precious Metals Review
Wheaton Precious Metals' Return On Asserts of 3.54% is among the best of the industry. WPM does better than the industry average Return On Assets of -0.94%. WPM's Profit Margin of 23.88% is among the best of the industry. WPM does better than the industry average Profit Margin of 11.85%. WPM has a Return On Equity of 4.33%. This is below the industry average of 5.15%.
Wheaton Precious Metals stock has a low PEG Ratio which indicates a rather cheap valuation of the company. When comparing the current price to the book value of WPM, we can conclude it is valued correctly. It is trading at 1.67 times its book value. When comparing the price book ratio of WPM to the average industry price book ratio of 1.65, WPM is valuated inline with its industry peers. The Price/Earnings Ratio is 38.45, which means the current valuation is expensive for WPM. Compared to an average industry Price/Earning Ratio of 23.66, WPM is slightly more expensive. With a Forward Price/Earnings Ratio of 29.9, WPM is very expensive.
Wheaton Precious Metals shows strong growth in Earnings Per Share (EPS). In the last year, the EPS has been growing by 213.95%, which is quite impressive. Based on estimates for the next 2 years, WPM will show a very strong growth in Earnings Per Share. The EPS will grow by 39.05% on average per year. WPM shows a small growth in Revenue. Measured over the last 5 years, the Revenue has been growing by 1.21% yearly. Measured over the past 5 years, WPM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.56% on average per year. The EPS growth is decreasing: in the next 2 years the growth will be less than in the last year.
WPM has a Current Ratio of 2.67. This indicates that WPM is financially healthy and has no problem in meeting its short term obligations. A Quick Ratio of 2.67 indicates that WPM has no problem at all paying its short term obligations. WPM has an Altman-Z score of 5.15. This indicates that WPM is financially healthy and has little risk of bankruptcy at the moment. When comparing the Altman-Z score to an average industry Current Ratio of 2.47, WPM has better financial health than the average industry peer. The Quick Ratio is inline with the industry averages, which is at 2.37. When comparing the Current Ratio of WPM to the average industry Current Ratio of 3.24, WPM is less able to pay its short term obligations than its industry peers. When comparing the Debt to Equity Ratio of WPM to the average industry Debt to Equity Ratio of 0.02, WPM required more debt to finance its operations than its industry peers.