How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Wheaton Precious Metals Corp. (WPM) ten years ago? It may not have been easy to hold on to WPM for all that time, but if you did, how much would your investment be worth today?
Wheaton Precious Metals Corp.'s Business In-Depth
With that in mind, let's take a look at Wheaton Precious Metals Corp.'s main business drivers.
Wheaton Precious Metals is one of the largest precious metal streaming companies in the world that generates its revenues from the sale of precious metals and cobalt.
The company enters into purchase agreements (“PMPAs”) to purchase the entireity or a portion of the precious metals or cobalt production from mines located across the globe for an upfront payment and an additional payment upon the delivery of the precious metal or cobalt.
As of Dec. 31, 2024, Wheaton Precious Metals holds 38 long-term agreements, comprising 30 precious metal purchase deals, 3 early deposit agreements, and 5 royalties, spanning 18 operating mines, 23 development projects, and 4 mines which are closed or in care-and-maintenance.
Following the PMPAs, Wheaton acquires metal production from the counterparties for an initial upfront payment plus an additional cash payment for each ounce or pound delivered that is fixed by contract, generally at or below the prevailing market price. The company’s production profile is driven by the volume of metal production at its various mining assets.
The primary drivers of the company’s financial results are the volume of metal production at the various mines to which the PMPAs relate and the price realized by Wheaton upon the sale of the metals received.
The company offers investors leverage to increasing precious metals prices, a sustainable dividend payout as well as organic and acquisition growth opportunities.
Wheaton’s operating costs are contractually set at the time the stream is entered into, which enables investors to benefit from cost predictability and strong margin growth amid rising metal prices.
Wheaton is focused on adding additional production capacity from high-quality accretive metals. Its business model focuses on reducing risk while leveraging higher commodity prices. The company continues to add streams which bring immediate production, as well as medium and longer-term growth to its robust portfolio of assets.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Wheaton Precious Metals Corp., if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in December 2015 would be worth $8,741.06, or a gain of 774.11%, as of December 1, 2025, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 227.69% and the price of gold went up 279.23% over the same time frame.
Going forward, analysts are expecting more upside for WPM.
Wheaton Precious Metals is poised to gain from its diversified portfolio of high-quality, long-life assets. The company continues to add streams, which lead to immediate production as well as medium and long-term growth, to its portfolio of assets. Its debt-free balance sheet will enable further acquisitions. Even though the company has been bearing the brunt of the suspension of operations at Stillwater West operations and Los Filos mine, this will be offset by growth from operating assets, including Salobo, Antamina, Peñasquito, Voisey's Bay and Marmato. The company expects production to increase 40% over the next five years and be more than 800,000 GEOs by 2028, aided by contributions from the same operating assets. Unsurprisingly, the earnings estimates for 2025 have undergone positive revisions lately.
Shares have gained 14.02% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Wheaton Precious Metals Corp. (WPM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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