Wheaton Precious Metals Corp. (WPM)

Price—Loading quote

AI: Overvalued

Price checkAt the observed market level, Wheaton looks expensive even after its recent earnings surge.

At the observed market level, the shares trade at about 49 times 2025 diluted earnings of $3.237 per share; diluted earnings include potential shares from awards and options. Even if first-half 2026 net earnings of $1.1 billion are simply doubled, the multiple is still about 33 times earnings. That is a rich starting point for a cyclical precious-metals business. The price therefore assumes strong gold and silver prices persist and Wheaton’s planned production growth arrives with few setbacks. That limited margin of safety supports an Overvalued verdict.

Big pictureProfit and cash flow are surging, but much of the jump comes from higher metal prices.

Revenue rose about 80% in 2025 to $2.315 billion, while net income climbed about 178% to $1.472 billion and operating cash flow rose about 85% to $1.905 billion. Momentum continued in the first half of 2026, with $1.8 billion of revenue, $1.1 billion of net earnings and $1.4 billion of operating cash flow. Second-quarter revenue benefited from a 61% increase in the realized gold-equivalent price, a blended measure converting different metals into gold terms, versus a 14% increase in equivalent ounces sold. Metal prices are therefore a major earnings driver.

Business strengthLong-life metal contracts and little share issuance support cash generation, though new debt reduces flexibility.

At year-end 2025, Wheaton held $1.154 billion of cash against $435 million of total liabilities, and shares outstanding had risen only about 1% from 2020 to 2025. Cash dividends reached $296 million in 2025. The picture changed after the $4.3 billion Antamina stream: management used cash plus debt rather than issuing stock. By June 2026, cash was $100 million and debt was $2.0 billion, leaving $1.9 billion of net debt, meaning debt minus cash. Available liquidity, meaning cash plus borrowing capacity, remained $2.6 billion.

What could change the storyHigher sustained metal prices and promised production growth could justify more, while normalization would hurt sharply.

The strongest bull case is volume growth on top of high metals prices. Wheaton guides to 860,000–940,000 gold-equivalent ounces in 2026 versus about 692,000 in 2025 and targets roughly 1.2 million by 2030; the new Antamina stream alone is expected to add about 6 million silver ounces annually for five years. The bear case is that the current valuation already rewards that growth. The thesis strengthens if production rises and net debt falls quickly; it weakens if metal prices normalize, project ramps slip, or debt stays elevated.

AI: News

Record second quarterRecord second-quarter results strengthened the case that current metal prices are converting into exceptional cash flow.

On August 6, Wheaton reported second-quarter revenue of $929 million, net earnings of $543 million and operating cash flow, the cash generated by core operations, of $650 million. First-half operating cash flow reached $1.4 billion. The shares rose about 7.1% in the next trading session. The timing is consistent with a positive earnings reaction, but it does not prove the results were the only cause. The cash matters because Wheaton now has $1.9 billion of net debt, meaning debt minus cash, after its large Antamina investment.

Precious metals surgeA sharp gold rally improved Wheaton’s contract profits and coincided with a major share-price jump.

On August 19, spot gold surged more than 3% to about $4,488 an ounce and silver rose nearly 4%; Wheaton shares gained about 11.1% that day. By August 24, Reuters reported gold around $4,647 an ounce. Wheaton’s contracts generally let it buy agreed metal volumes at preset or formula-based payments and sell near market prices, so rising metals can widen cash margins. The same-day move and direct exposure make the link plausible, but metals were not necessarily the only driver.

Antamina stream expansionThe large Antamina deal added long-life silver growth but replaced much of Wheaton’s cash with debt.

Announced in February and closed April 1, Wheaton’s expanded Antamina silver stream required a $4.3 billion upfront payment and is expected to add about 6 million silver ounces annually for its first five years. Financing used estimated cash on hand plus a $1.5 billion term loan and roughly $0.9 billion from the revolving facility, a reusable bank credit line, avoiding immediate share dilution. This increases upside to strong silver prices, but it also makes debt repayment and Antamina production delivery more important to shareholder value.

Loading local price history

Revenue

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$2.31B	$1.28B	$1.02B	$1.07B	$1.20B	$1.10B	$861.3M	$794.0M	$843.2M	$891.6M
Gross profit	$1.67B	$802.6M	$573.4M	$565.5M	$658.9M	$585.6M	$345.9M	$295.9M	$337.0M	$328.4M
Gross margin	72.22%	62.48%	56.44%	53.09%	54.83%	53.42%	40.16%	37.27%	39.97%	36.84%
Operating expenses	$90.0M	$181.8M	$68.2M	$53.6M	—	$65.7M	$220.4M	$51.6M	$263.4M	—
Operating income	$1.58B	$620.8M	$505.3M	$511.9M	$754.7M	$519.9M	$125.5M	$244.3M	$73.7M	—
Operating margin	68.33%	48.33%	49.73%	48.06%	62.80%	47.42%	14.57%	30.77%	8.74%	—
EBITDA	$1.58B	$622.2M	$755.2M	$903.3M	$756.5M	$521.8M	$127.4M	$245.3M	$74.7M	—
EBITDA margin	68.39%	48.43%	74.33%	84.81%	62.96%	47.60%	14.79%	30.90%	8.85%	—
Net income	$1.47B	$529.1M	$537.6M	$669.1M	$754.9M	$507.8M	$86.1M	$427.1M	$57.7M	$195.1M
Net profit margin	63.58%	41.19%	52.92%	62.83%	62.82%	46.32%	10.00%	53.79%	6.84%	21.89%
Basic EPSper basic share	$3.24	$1.17	$1.19	$1.48	$1.68	$1.13	$0.19	$0.96	$0.13	$0.45
Diluted EPSper diluted share	$3.24	$1.17	$1.19	$1.48	$1.67	$1.13	$0.19	$0.96	$0.13	$0.45