AGNICO EAGLE MINES LTD (AEM.CA) Stock Fundamental Analysis
TSX:AEM - Toronto Stock Exchange - CA0084741085 - Common Stock
Taking everything into account, AEM scores 7 out of 10 in our fundamental rating. AEM was compared to 822 industry peers in the Metals & Mining industry. AEM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AEM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make AEM a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year AEM was profitable.
In the past year AEM had a positive cash flow from operations.
Of the past 5 years AEM 4 years were profitable.
Of the past 5 years AEM 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.37%, AEM belongs to the top of the industry, outperforming 89.46% of the companies in the same industry.
AEM has a better Return On Equity (4.90%) than 89.73% of its industry peers.
With an excellent Return On Invested Capital value of 6.80%, AEM belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
AEM had an Average Return On Invested Capital over the past 3 years of 5.77%. This is significantly below the industry average of 11.88%.
The last Return On Invested Capital (6.80%) for AEM is above the 3 year average (5.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 4.9% | ||
| ROIC | 6.8% |
ROA(3y)5.04%
ROA(5y)5.17%
ROE(3y)7.83%
ROE(5y)8.35%
ROIC(3y)5.77%
ROIC(5y)5.58%
1.3 Margins
The Profit Margin of AEM (12.86%) is better than 94.32% of its industry peers.
AEM's Profit Margin has improved in the last couple of years.
AEM has a Operating Margin of 34.39%. This is amongst the best in the industry. AEM outperforms 97.30% of its industry peers.
In the last couple of years the Operating Margin of AEM has grown nicely.
AEM has a Gross Margin of 60.14%. This is amongst the best in the industry. AEM outperforms 97.57% of its industry peers.
AEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.39% | ||
| PM (TTM) | 12.86% | ||
| GM | 60.14% |
OM growth 3Y-0.75%
OM growth 5Y23.81%
PM growth 3Y21.57%
PM growth 5YN/A
GM growth 3Y0.7%
GM growth 5Y3.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEM is destroying value.
AEM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AEM has an Altman-Z score of 3.42. This indicates that AEM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.42, AEM is doing good in the industry, outperforming 63.92% of the companies in the same industry.
AEM has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.87, AEM belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
AEM has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AEM (0.06) is worse 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 | 0.87 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.68
WACC10.07%
2.3 Liquidity
A Current Ratio of 1.75 indicates that AEM should not have too much problems paying its short term obligations.
The Current ratio of AEM (1.75) is comparable to the rest of the industry.
AEM has a Quick Ratio of 1.75. This is a bad value and indicates that AEM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AEM (0.83) is worse than 63.11% 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 | 1.75 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
AEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.01%, which is quite impressive.
The Earnings Per Share has been growing by 48.38% 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 25.00%.
The Revenue has been growing by 24.77% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)71.01%
EPS 3Y6.23%
EPS 5Y48.38%
EPS Q2Q%159.09%
Revenue 1Y (TTM)25%
Revenue growth 3Y28.3%
Revenue growth 5Y24.77%
Sales Q2Q%31.25%
3.2 Future
AEM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.95% yearly.
Based on estimates for the next years, AEM will show a small growth in Revenue. The Revenue will grow by 2.90% on average per year.
EPS Next Y87.1%
EPS Next 2Y46.06%
EPS Next 3Y24.74%
EPS Next 5Y6.95%
Revenue Next Year27.9%
Revenue Next 2Y19.97%
Revenue Next 3Y12.45%
Revenue Next 5Y2.9%
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
Based on the Price/Earnings ratio of 24.18, the valuation of AEM can be described as rather expensive.
Based on the Price/Earnings ratio, AEM is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.96, AEM is valued at the same level.
The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of AEM.
88.24% of the companies in the same industry are more expensive than AEM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AEM to the average of the S&P500 Index (24.11), we can say AEM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEM is valued cheaply inside the industry as 90.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEM indicates a rather cheap valuation: AEM is cheaper than 93.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.02 | ||
| EV/EBITDA | 10.2 |
4.3 Compensation for Growth
AEM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AEM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AEM's earnings are expected to grow with 24.74% in the coming years.
PEG (NY)0.28
PEG (5Y)0.5
EPS Next 2Y46.06%
EPS Next 3Y24.74%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 3.29, AEM pays a better dividend. On top of this AEM pays more dividend than 96.62% of the companies listed in the same industry.
AEM's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
On average, the dividend of AEM grows each year by 30.06%, which is quite nice.
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)30.06%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
AEM pays out 65.03% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP65.03%
EPS Next 2Y46.06%
EPS Next 3Y24.74%
AGNICO EAGLE MINES LTD
TSX:AEM (1/17/2025, 7:00:00 PM)
123.09
+1.88 (+1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.92%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap61.73B
Analysts83.53
Price Target139.93 (13.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend1.34
Dividend Growth(5Y)30.06%
DP65.03%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.88%
Min EPS beat(2)9.98%
Max EPS beat(2)15.78%
EPS beat(4)4
Avg EPS beat(4)15.7%
Min EPS beat(4)9.98%
Max EPS beat(4)23.15%
EPS beat(8)6
Avg EPS beat(8)10.73%
EPS beat(12)9
Avg EPS beat(12)14.65%
EPS beat(16)13
Avg EPS beat(16)13.04%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)1.25%
Max Revenue beat(2)5.09%
Revenue beat(4)4
Avg Revenue beat(4)4.5%
Min Revenue beat(4)1.25%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)1.6%
Revenue beat(12)7
Avg Revenue beat(12)1.61%
Revenue beat(16)10
Avg Revenue beat(16)1.7%
PT rev (1m)6.01%
PT rev (3m)15.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)94.67%
EPS NY rev (1m)0%
EPS NY rev (3m)77.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.7%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)17.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 17.99 | ||
| P/S | 5.49 | ||
| P/FCF | 23.02 | ||
| P/OCF | 12.07 | ||
| P/B | 2.09 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)5.09
EY4.14%
EPS(NY)6.84
Fwd EY5.56%
FCF(TTM)5.35
FCFY4.34%
OCF(TTM)10.2
OCFY8.29%
SpS22.43
BVpS58.81
TBVpS46.89
PEG (NY)0.28
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 4.9% | ||
| ROCE | 9.55% | ||
| ROIC | 6.8% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 8.32% | ||
| OM | 34.39% | ||
| PM (TTM) | 12.86% | ||
| GM | 60.14% | ||
| FCFM | 23.84% |
ROA(3y)5.04%
ROA(5y)5.17%
ROE(3y)7.83%
ROE(5y)8.35%
ROIC(3y)5.77%
ROIC(5y)5.58%
ROICexc(3y)5.89%
ROICexc(5y)5.75%
ROICexgc(3y)6.45%
ROICexgc(5y)6.2%
ROCE(3y)8.1%
ROCE(5y)7.83%
ROICexcg growth 3Y-9.57%
ROICexcg growth 5Y20.57%
ROICexc growth 3Y-13.03%
ROICexc growth 5Y18.04%
OM growth 3Y-0.75%
OM growth 5Y23.81%
PM growth 3Y21.57%
PM growth 5YN/A
GM growth 3Y0.7%
GM growth 5Y3.46%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.27 | ||
| Cap/Depr | 111.56% | ||
| Cap/Sales | 21.65% | ||
| Interest Coverage | 24.78 | ||
| Cash Conversion | 84.56% | ||
| Profit Quality | 185.42% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.42 |
F-Score6
WACC10.07%
ROIC/WACC0.68
Cap/Depr(3y)124.55%
Cap/Depr(5y)131.12%
Cap/Sales(3y)25.03%
Cap/Sales(5y)26.94%
Profit Quality(3y)70.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.01%
EPS 3Y6.23%
EPS 5Y48.38%
EPS Q2Q%159.09%
EPS Next Y87.1%
EPS Next 2Y46.06%
EPS Next 3Y24.74%
EPS Next 5Y6.95%
Revenue 1Y (TTM)25%
Revenue growth 3Y28.3%
Revenue growth 5Y24.77%
Sales Q2Q%31.25%
Revenue Next Year27.9%
Revenue Next 2Y19.97%
Revenue Next 3Y12.45%
Revenue Next 5Y2.9%
EBIT growth 1Y68.14%
EBIT growth 3Y27.34%
EBIT growth 5Y54.49%
EBIT Next Year139.52%
EBIT Next 3Y36.05%
EBIT Next 5Y15.89%
FCF growth 1Y208.85%
FCF growth 3Y29.34%
FCF growth 5YN/A
OCF growth 1Y79.8%
OCF growth 3Y29.71%
OCF growth 5Y33.84%