NEW YORK (TheStreet) -- Silver Wheaton Corp (SLW - Get Report) wasn't immune from an industry-wide sell-off on gold mining stocks, despite the fact the company's gold output contributes only 0.04% to total production. Investors were feeling bearish across all precious metal miners on Monday after gold prices tumbled to their lowest levels since July.
The Vancouver-based miner shed 5.9% to $19.72, adding to the company's year-to-date losses of 45.3%.
Gold prices were lower after November manufacturing data came in at the highest levels since mid-2011, sparking concerns the Federal Reserve would begin tapering monetary stimulus. By late afternoon, bullion was selling 2.3% lower to $1,219.71 an ounce.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.25, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for Silver Wheaton Corp is currently very high, coming in at 77.76%. Regardless of SLW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SLW's net profit margin of 46.30% significantly outperformed against the industry.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.44%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35.29% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, SLW is still more expensive than most of the other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 35.6% when compared to the same quarter one year ago, falling from $119.7 million to $77.06 million.
- You can view the full analysis from the report here: SLW Ratings Report