Buy Or Fear Wheaton Precious Metals Stock?
Wheaton Precious Metals stock (NYSE: WPM) has surged 61% year-t0-date, powered by a powerful combination of rising precious metals prices, stellar operational results, and growing institutional confidence. Still the stock appears to be a Buy, though volatility remains high. The company continues to deliver robust growth and solid financial stability, but its valuation is steep, leaving the stock volatile and vulnerable to even modest disappointments.
In Q2 2025, Wheaton broke new ground with record revenue of $503 million, propelled by higher gold-equivalent prices and sales volume, which jumped 28%. The company’s net earnings climbed 139% to $292 million, while adjusted earnings also set a new high of $286 million. Cash flow from operations followed suit, hitting a quarterly high of $415 million. The balance sheet remains pristine, with $1 billion in cash, no debt, and a $2 billion credit line intact. Operational capacity grew with GEO production up 9.5%, supported by contributions from Salobo and Blackwater. Separately see Can Barrick Gold Stock Rise 50%? But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio is designed to reduce stock-specific risk while giving upside exposure.
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[1] Valuation Looks Very High
Wheaton trades at a steep premium to the market. Its price-to-sales ratio is 25.8, substantially higher than the S&P 500’s 3.2. On earnings, the multiple stretches to 54.4 versus 21.5, and on free cash flow, it soars to 56.8 compared with 23.7 for the index. These metrics highlight the strong premium investors are placing on the stock. For more details see: WPM Valuation Ratios
[2] Growth Is Very Strong
Wheaton’s growth has been exceptional. Over the past three years, revenues have risen at an average annual rate of 16.2% versus 6.1% for the S&P 500. In the last twelve months, sales climbed 46.8% from $1.1 billion to $1.7 billion, and most recently, quarterly revenue jumped 68.3% year-over-year to $503 million. By comparison, the index grew just over 4.8%. For more details, see: WPM Revenue Comparison
[3] Profitability Appears Very Strong
Over the past year, Wheaton generated $1 billion in operating income, a 61.5% margin, alongside $1.3 billion in operating cash flow (81.2% margin), and $798 million in net income (47.5% margin). Wheaton’s operating, cash flow and net margins are substantially higher than the S&P 500, which stands at 18.5%, 20.3%, and 12.7% respectively for the index. For more details see: WPM Operating Income Comparison
[4] Financial Stability Looks Very Strong
Wheaton carries relatively little debt and a healthy cash balance. Its debt-to-equity ratio is 0.02%, well below the S&P 500 average of 20.9%. Meanwhile, cash makes up nearly 13% of total assets, compared with 6.8% for the index, giving the company flexibility to invest and weather uncertainty.
Looking for Smarter Alternatives?
Wheaton combines very strong growth and financial stability along with very high profitability. Its sky-high valuation makes it volatile, but the stock remains attractive for investors comfortable with risk.
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