Trade-Ideas: Silver Wheaton Corporation (SLW) Is Today's Pre-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Silver Wheaton Corporation ( SLW) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Silver Wheaton Corporation as such a stock due to the following factors:

  • SLW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $159.5 million.
  • SLW traded 16,130 shares today in the pre-market hours as of 8:44 AM.
  • SLW is down 3% today from Friday's close.

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More details on SLW:

Silver Wheaton Corp., together with its subsidiaries, operates as silver and gold streaming company worldwide. The company has 20 long-term purchase agreements associated with silver and gold relating to 23 mining assets. The stock currently has a dividend yield of 1.6%. SLW has a PE ratio of 18.3. Currently there are 14 analysts that rate Silver Wheaton Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Silver Wheaton Corporation has been 6.1 million shares per day over the past 30 days. Silver Wheaton has a market cap of $9.1 billion and is part of the basic materials sector and metals & mining industry. Shares are down 28.1% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Silver Wheaton Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SLW has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for SILVER WHEATON CORP is currently very high, coming in at 79.33%. 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 42.61% significantly outperformed against the industry.
  • SILVER WHEATON CORP's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SILVER WHEATON CORP increased its bottom line by earning $1.65 versus $1.55 in the prior year.
  • 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 49.7% when compared to the same quarter one year ago, falling from $141.41 million to $71.12 million.
  • Net operating cash flow has decreased to $125.26 million or 27.56% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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