AGNICO EAGLE MINES LTD (AEM.CA) Stock Fundamental Analysis
TSX:AEM - Toronto Stock Exchange - CA0084741085 - Common Stock - Currency: CAD
Overall AEM gets a fundamental rating of 7 out of 10. We evaluated AEM against 820 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making AEM a very profitable company, without any liquidiy or solvency issues. AEM has a decent growth rate and is not valued too expensively. These ratings would make AEM suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AEM was profitable.
AEM had a positive operating cash flow in the past year.
AEM had positive earnings in each of the past 5 years.
Each year in the past 5 years AEM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.32%, AEM belongs to the top of the industry, outperforming 89.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.10%, AEM belongs to the top of the industry, outperforming 89.73% of the companies in the same industry.
AEM has a Return On Invested Capital of 8.36%. This is amongst the best in the industry. AEM outperforms 94.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEM is significantly below the industry average of 11.94%.
The last Return On Invested Capital (8.36%) for AEM is above the 3 year average (5.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.1% | ||
| ROIC | 8.36% |
ROA(3y)5.31%
ROA(5y)5.35%
ROE(3y)7.74%
ROE(5y)8.32%
ROIC(3y)5.95%
ROIC(5y)6.64%
1.3 Margins
Looking at the Profit Margin, with a value of 22.88%, AEM belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
AEM's Profit Margin has improved in the last couple of years.
The Operating Margin of AEM (38.46%) is better than 97.30% of its industry peers.
AEM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 62.80%, AEM belongs to the best of the industry, outperforming 97.43% of the companies in the same industry.
In the last couple of years the Gross Margin of AEM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.46% | ||
| PM (TTM) | 22.88% | ||
| GM | 62.8% |
OM growth 3Y10.7%
OM growth 5Y15.25%
PM growth 3Y16.36%
PM growth 5Y3.82%
GM growth 3Y4.57%
GM growth 5Y4.67%
2. Health
2.1 Basic Checks
AEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AEM has been increased compared to 1 year ago.
AEM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AEM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.95 indicates that AEM is not in any danger for bankruptcy at the moment.
The Altman-Z score of AEM (3.95) is better than 62.97% of its industry peers.
AEM has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.60, AEM belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that AEM is not too dependend on debt financing.
AEM has a worse Debt to Equity ratio (0.06) than 64.19% of its industry peers.
Even though the debt/equity ratio score it not favorable for AEM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 3.95 |
ROIC/WACC0.9
WACC9.34%
2.3 Liquidity
AEM has a Current Ratio of 1.86. This is a normal value and indicates that AEM is financially healthy and should not expect problems in meeting its short term obligations.
AEM has a Current ratio (1.86) which is comparable to the rest of the industry.
AEM has a Quick Ratio of 1.86. This is a bad value and indicates that AEM is not financially healthy enough and could expect problems in meeting its short term obligations.
AEM has a worse Quick ratio (0.86) than 65.14% of its industry peers.
The current and quick ratio evaluation for AEM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.69% over the past year.
The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
AEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.03%.
Measured over the past years, AEM shows a very strong growth in Revenue. The Revenue has been growing by 27.13% on average per year.
EPS 1Y (TTM)89.69%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%121.05%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%26.59%
3.2 Future
AEM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.54% yearly.
Based on estimates for the next years, AEM will show a small growth in Revenue. The Revenue will grow by 2.28% on average per year.
EPS Next Y17.38%
EPS Next 2Y7.82%
EPS Next 3Y1.07%
EPS Next 5Y1.54%
Revenue Next Year13.33%
Revenue Next 2Y6.65%
Revenue Next 3Y6.16%
Revenue Next 5Y2.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.80, AEM is valued on the expensive side.
89.19% of the companies in the same industry are more expensive than AEM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, AEM is valued a bit cheaper.
AEM is valuated rather expensively with a Price/Forward Earnings ratio of 19.40.
AEM's Price/Forward Earnings ratio is rather cheap when compared to the industry. AEM is cheaper than 88.92% of the companies in the same industry.
AEM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
90.95% of the companies in the same industry are more expensive than AEM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AEM is valued cheaply inside the industry as 92.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.75 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
AEM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AEM may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)0.67
EPS Next 2Y7.82%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.55%.
AEM's Dividend Yield is rather good when compared to the industry average which is at 7.55. AEM pays more dividend than 96.35% of the companies in the same industry.
AEM's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of AEM is nicely growing with an annual growth rate of 24.77%!
AEM has been paying a dividend for at least 10 years, so it has a reliable track record.
AEM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)24.77%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
35.43% of the earnings are spent on dividend by AEM. This is a low number and sustainable payout ratio.
The dividend of AEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.43%
EPS Next 2Y7.82%
EPS Next 3Y1.07%
TSX:AEM (2/21/2025, 7:00:00 PM)
136.77
-2.15 (-1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap68.70B
Analysts81.33
Price Target143.99 (5.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend1.34
Dividend Growth(5Y)24.77%
DP35.43%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.26%
Min EPS beat(2)4.54%
Max EPS beat(2)9.98%
EPS beat(4)4
Avg EPS beat(4)13.37%
Min EPS beat(4)4.54%
Max EPS beat(4)23.15%
EPS beat(8)7
Avg EPS beat(8)11.51%
EPS beat(12)10
Avg EPS beat(12)16.52%
EPS beat(16)13
Avg EPS beat(16)13.18%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)1.25%
Revenue beat(4)3
Avg Revenue beat(4)2.79%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)1.88%
Revenue beat(12)6
Avg Revenue beat(12)1.48%
Revenue beat(16)10
Avg Revenue beat(16)1.7%
PT rev (1m)2.9%
PT rev (3m)16.28%
EPS NQ rev (1m)4.97%
EPS NQ rev (3m)47.29%
EPS NY rev (1m)4.37%
EPS NY rev (3m)5.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)7.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 19.4 | ||
| P/S | 5.84 | ||
| P/FCF | 22.75 | ||
| P/OCF | 12.22 | ||
| P/B | 2.32 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)6
EY4.39%
EPS(NY)7.05
Fwd EY5.15%
FCF(TTM)6.01
FCFY4.39%
OCF(TTM)11.19
OCFY8.19%
SpS23.42
BVpS58.88
TBVpS47.13
PEG (NY)1.31
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.1% | ||
| ROCE | 11.19% | ||
| ROIC | 8.36% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 10.19% | ||
| OM | 38.46% | ||
| PM (TTM) | 22.88% | ||
| GM | 62.8% | ||
| FCFM | 25.67% |
ROA(3y)5.31%
ROA(5y)5.35%
ROE(3y)7.74%
ROE(5y)8.32%
ROIC(3y)5.95%
ROIC(5y)6.64%
ROICexc(3y)6.12%
ROICexc(5y)6.83%
ROICexgc(3y)7.08%
ROICexgc(5y)7.56%
ROCE(3y)7.96%
ROCE(5y)8.88%
ROICexcg growth 3Y3.23%
ROICexcg growth 5Y15.99%
ROICexc growth 3Y-0.77%
ROICexc growth 5Y13.49%
OM growth 3Y10.7%
OM growth 5Y15.25%
PM growth 3Y16.36%
PM growth 5Y3.82%
GM growth 3Y4.57%
GM growth 5Y4.67%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 121.15% | ||
| Cap/Sales | 22.14% | ||
| Interest Coverage | 30.73 | ||
| Cash Conversion | 84.26% | ||
| Profit Quality | 112.19% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 3.95 |
F-Score6
WACC9.34%
ROIC/WACC0.9
Cap/Depr(3y)124.43%
Cap/Depr(5y)123.02%
Cap/Sales(3y)24.69%
Cap/Sales(5y)24.29%
Profit Quality(3y)81.25%
Profit Quality(5y)81.62%
High Growth Momentum
Growth
EPS 1Y (TTM)89.69%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%121.05%
EPS Next Y17.38%
EPS Next 2Y7.82%
EPS Next 3Y1.07%
EPS Next 5Y1.54%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%26.59%
Revenue Next Year13.33%
Revenue Next 2Y6.65%
Revenue Next 3Y6.16%
Revenue Next 5Y2.28%
EBIT growth 1Y84.19%
EBIT growth 3Y42.69%
EBIT growth 5Y46.52%
EBIT Next Year68.59%
EBIT Next 3Y14.68%
EBIT Next 5Y10.3%
FCF growth 1Y127.09%
FCF growth 3Y68.02%
FCF growth 5YN/A
OCF growth 1Y52.25%
OCF growth 3Y43.33%
OCF growth 5Y35.05%