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
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
|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|
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
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.
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