4-Star Stocks Poised to Pop: Silver Wheaton
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, silver royalty holding company Silver Wheaton (NYS: SLW) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Silver Wheaton's business and see what CAPS investors are saying about the stock right now.
Silver Wheaton facts
Headquarters | Vancouver, Canada |
Market Cap | $13.6 billion |
Industry | Precious metals and minerals |
Trailing-12-Month Revenue | $595.4 million |
Management | Co-Founder/CEO Randy Smallwood CFO Gary Brown |
Return on Equity (Average, Past 3 Years) | 10.8% |
Cash/Debt | $701.4 million / $92.9 million |
Dividend Yield | 0.3% |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 2,542 members who have rated Silver Wheaton believe the stock will outperform the S&P 500 going forward. These bulls include Gonzhouse and Doulk.
Late last month, Gonzhouse listed a few of Silver Wheaton's positives:
82% [net margins]. ... Dividend just initiated but likely to grow substantially. Fixed cost at $4 per oz of silver and no hedges. A favorite of TMFSinchiruna. What's not to like?
In fact, Silver Wheaton boasts a rather robust three-year average operating margin of 56.1%. That's much higher than that of other silver plays like Hecla Mining (NYS: HL) (22.6%) and Pan American Silver (NAS: PAAS) (22.5%), let alone Coeur d'Alene's (NYS: CDE) negative average operating margin of 16.9%.
CAPS member Doulk elaborates on the Silver Wheaton bull case:
They have 25 employees and are not responsible for any of the dirty work. Just help invest in mines to aquire contracts to receive silver as the by-product of mining gold. Able to buy vast quantities of silver at $4 per ounce and sell it at market. Contracts are in place at many major gold mines like [Barrick].
What do you think about Silver Wheaton, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Silver Wheaton?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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