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 (NYSE: 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 |
$11.6 billion |
| Industry |
Precious metals and minerals |
| Trailing-12-Month Revenue |
$687.7 million |
| Management |
Co-Founder/CEO Randy Smallwood
CFO Gary Brown |
| Return on Equity (average, past 3 years) |
11.9% |
| Cash/Debt |
$715.6 million / $85.8 million |
| Dividend Yield |
1.1% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 2,612 members who have rated Silver Wheaton believe the stock will outperform the S&P 500 going forward. These bulls include MajorBob04 and fellow Fool Sean Williams (TMFUltraLong), who is ranked in the top 0.5% of our community.
Earlier this fall, MajorBob04 tapped Silver Wheaton as a particularly solid selection: "Silver prices are still high enough to generate great returns for Silver Wheaton. ... [A]fter the [E]uropean debt crisis is over, the profits and growth will be even greater."
In fact, Silver Wheaton boasts a rather robust three-year average operating margin of 58%. That's much higher than that of other silver plays like Hecla Mining (NYSE: HL ) (30%) and Pan American Silver (Nasdaq: PAAS ) (25%), let alone Coeur d'Alene's (NYSE: CDE ) negative average operating margin of -14%.
CAPS All-Star TMFUltraLong elaborates on the bull case:
Why wouldn't you want to own Silver Wheaton. The company has its silver contracts locked in at such absurdly low levels that anything over roughly $7 in pure profit. Newflash, the last time I checked ... silver prices were well above $7/oz. Silver Wheaton's margins are absolutely astronomical and I suspect it will translate into big dividend gains in the not too distant future.
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!
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