Wheaton Precious Metals Stock Beneish M Score

WPM Stock   4,850  55.00  1.12%   
This module uses fundamental data of Wheaton Precious to approximate the value of its Beneish M Score. Wheaton Precious M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wheaton Precious Metals. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
  
The current year's Net Debt is expected to grow to about (513.3 M). In addition to that, Short and Long Term Debt Total is expected to decline to about 5.9 M.
At this time, Wheaton Precious' M Score is inapplicable. The earnings manipulation may begin if Wheaton Precious' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Wheaton Precious executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Wheaton Precious' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.85
Beneish M Score - Inapplicable
Elasticity of Receivables

1.42

Focus
Asset Quality

1.35

Focus
Expense Coverage

1.76

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.76

Focus
Depreciation Resistance

1.46

Focus
Net Sales Growth

0.74

Focus
Financial Leverage Condition

0.88

Focus

Wheaton Precious Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Wheaton Precious' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables9.8 M9.3 M
Sufficiently Up
Slightly volatile
Total Revenue753.8 MB
Way Down
Slightly volatile
Total Assets7.4 BB
Sufficiently Up
Slightly volatile
Total Current Assets595.8 M567.4 M
Sufficiently Up
Slightly volatile
Non Current Assets Total6.8 B6.5 B
Sufficiently Up
Slightly volatile
Property Plant Equipment4.6 B5.1 B
Moderately Down
Slightly volatile
Selling General Administrative48.5 M37.1 M
Significantly Up
Slightly volatile
Total Current Liabilities40 M26.1 M
Way Up
Pretty Stable
Non Current Liabilities Total18.6 M19.6 M
Notably Down
Pretty Stable
Long Term Debt166.7 M175.5 M
Notably Down
Slightly volatile
Operating Income362 M505.3 M
Way Down
Very volatile
Total Cash From Operating Activities524.3 M750.8 M
Way Down
Slightly volatile
Long Term Investments193.2 M246.7 M
Significantly Down
Slightly volatile

Wheaton Precious Metals Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Wheaton Precious' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Wheaton Precious in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Wheaton Precious' degree of accounting gimmicks and manipulations.

About Wheaton Precious Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

131.28 Million

At present, Wheaton Precious' Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Wheaton Precious Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Wheaton Precious. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables7.6M5.4M11.2M9.2M9.3M9.8M
Total Revenue861.3M1.1B1.2B1.1B1.0B753.8M
Total Assets6.3B6.0B6.3B6.8B7.0B7.4B
Total Current Assets154.8M201.8M249.7M720.1M567.4M595.8M
Net Debt774.8M6.0M(223.2M)(694.1M)(540.3M)(513.3M)
Short Term Debt(9.9M)(16.5M)(14.0M)818K604K573.8K
Long Term Debt770M1.3B874.5M195M175.5M166.7M
Operating Income291.6M519.9M600.9M511.9M505.3M362.0M
Investments16.9M152.3M122.3M(44.3M)(646.6M)(614.3M)

About Wheaton Precious Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Wheaton Precious Metals's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Wheaton Precious using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Wheaton Precious Metals based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Wheaton Precious Metals is a strong investment it is important to analyze Wheaton Precious' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Wheaton Precious' future performance. For an informed investment choice regarding Wheaton Stock, refer to the following important reports:
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wheaton Precious Metals. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Please note, there is a significant difference between Wheaton Precious' value and its price as these two are different measures arrived at by different means. Investors typically determine if Wheaton Precious is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wheaton Precious' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.