Saturday, April 5, 2014

Why Silver Wheaton Is Ready to Rebound

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 and see what CAPS investors are saying about the stock right now.

Silver Wheaton facts

Headquarters (founded)

Vancouver, Canada (2004)

Market Cap

$8.4 billion

Industry

Precious metals and minerals

Trailing-12-Month Revenue

$849.6 million

Management

Co-Founder/CEO Randy Smallwood

CFO Gary Brown

Return on Equity (average, past 3 years)

16.8%

Cash/Debt

$778.2 million / $50.1 million

Dividend Yield

2.3%

Competitors

Goldcorp

Pan American Silver

Hecla Mining

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 2,762 members who have rated Silver Wheaton believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, All-Star panda72, succinctly summed up the Silver Wheaton opportunity for our community: "Largely a play on metals speculation, but [I like] the model to play in silver rights rather than investing massive amounts of capital into making holes in the ground in places with sketchy support for free enterprise."

If you are looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, then Silver Wheaton provides a unique play on the future of silver. SLW chooses to finance the mining of silver; it has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.

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