How Does Silver Wheaton Compare With Other Streaming Companies In Terms Of Profitability?
Silver Wheaton is the largest player in the precious metal streaming space, in terms of revenue. The company is also the most profitable among the major streaming companies, as illustrated by the following table. Whereas Silver Wheaton’s rivals have superior EBITDA margins, the company enjoys the highest net margins.
The major reason for this situation is the favorable tax treatment that Silver Wheaton’s operations are subject to. With the bulk of the company’s profits sourced from subsidiaries located in jurisdictions that are subject to near zero income tax rates, Silver Wheaton’s tax expense is considerably lower as compared to its competitors. Check out our forecasts for Silver Wheaton’s income tax expense.
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Silver Wheaton’s income tax expense is currently the subject of scrutiny by the Canada Revenue Agency (CRA), with the regulatory authority auditing several of the company’s transactions. [1] A favorable final ruling by the CRA, which preserves the status quo in terms of the tax treatment of the company’s operations, is desirable from Silver Wheaton’s perspective in order to maintain its competitive advantage.
Have more questions about Silver Wheaton? See the links below.
- What Is Silver Wheaton’s Revenue And EBITDA Breakdown?
- What Is Silver Wheaton’s Fundamental Value Based On Expected 2015 Results?
- How Has Silver Wheaton’s Revenue Composition Changed Over The Last 4 Years?
- By What Percentage Did Silver Wheaton’s Revenue & EBITDA Decline In The Last 4 Years?
- By What Percentage Can Silver Wheaton’s Revenue & EBITDA Grow In The Next 3 Years?
- By What Percentage Will Silver Wheaton’s Silver Equivalent Production Increase If Production Commences At The Pascua-Lama Mine?
- How Will Silver Wheaton’s Revenue Composition Change Over The Next 5 Years?
- How Do Silver Wheaton’s Margins Compare With Those Of Traditional Precious Metal Mining Companies?
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Notes:- Silver Wheaton provides update on CRA dispute, Silver Wheaton News Release [↩]