Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- SLW's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 3.4%. 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.
- SLW's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 6.28, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Metals & Mining industry and the overall market, SILVER WHEATON CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has slightly increased to $172.92 million or 2.74% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.18%.
- The gross profit margin for SILVER WHEATON CORP is currently very high, coming in at 86.00%. 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 70.20% significantly outperformed against the industry.
Silver Wheaton Corp., a mining company, together with its subsidiaries, operates as a silver streaming company worldwide. The company has a P/E ratio of 20.9, above the average metals & mining industry P/E ratio of 18.5 and above the S&P 500 P/E ratio of 17.7. Silver Wheaton has a market cap of $10.59 billion and is part of the
industry. Shares are up 15.3% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.