AGNICO EAGLE MINES LTD (AEM) Stock Fundamental Analysis
NYSE:AEM - New York Stock Exchange, Inc. - CA0084741085 - Common Stock - Currency: USD
AEM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 152 industry peers in the Metals & Mining industry. AEM has an excellent profitability rating, but there are some minor concerns on its financial health. AEM is not valued too expensively and it also shows a decent growth rate.
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.
AEM had positive earnings in 4 of the past 5 years.
Of the past 5 years AEM 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AEM (3.37%) is better than 69.66% of its industry peers.
With a decent Return On Equity value of 4.90%, AEM is doing good in the industry, outperforming 68.28% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.80%, AEM is doing good in the industry, outperforming 73.10% 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 below the industry average of 8.75%.
The 3 year average ROIC (5.77%) for AEM is below the current ROIC(6.80%), indicating increased profibility in the last year.
| 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
AEM's Profit Margin of 12.86% is amongst the best of the industry. AEM outperforms 83.45% of its industry peers.
AEM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 34.39%, AEM belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
AEM's Operating Margin has improved in the last couple of years.
AEM has a better Gross Margin (60.14%) than 93.10% 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
AEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for AEM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AEM has an Altman-Z score of 3.75. This indicates that AEM is financially healthy and has little risk of bankruptcy at the moment.
AEM has a Altman-Z score of 3.75. This is in the better half of the industry: AEM outperforms 62.76% of its industry peers.
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 87.59% 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.
Looking at the Debt to Equity ratio, with a value of 0.06, AEM is in the better half of the industry, outperforming 66.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 3.75 |
ROIC/WACC0.71
WACC9.57%
2.3 Liquidity
AEM has a Current Ratio of 1.75. This is a normal value and indicates that AEM is financially healthy and should not expect problems in meeting its short term obligations.
AEM's Current ratio of 1.75 is on the low side compared to the rest of the industry. AEM is outperformed by 62.76% of its industry peers.
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 79.31% 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.
The Revenue is expected to grow by 2.90% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.25, which means the current valuation is very expensive for AEM.
62.07% 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 28.46, AEM is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.54, the valuation of AEM can be described as rather expensive.
AEM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AEM to the average of the S&P500 Index (92.56), we can say AEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AEM.
Based on the Price/Free Cash Flow ratio, AEM is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of AEM 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)0.3
PEG (5Y)0.54
EPS Next 2Y46.06%
EPS Next 3Y24.74%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.69%.
AEM's Dividend Yield is a higher than the industry average which is at 3.17.
AEM's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of AEM is nicely growing with an annual growth rate of 30.06%!
AEM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of AEM decreased in the last 3 years.
Dividend Growth(5Y)30.06%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
65.03% of the earnings are spent on dividend by AEM. 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
NYSE:AEM (1/31/2025, 8:09:35 PM)
After market: 92.95 +0.01 (+0.01%)92.94
-1.52 (-1.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.92%
Inst Owner Change-0.08%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap46.61B
Analysts83.53
Price Target97.3 (4.69%)
Short Float %0.69%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend1.34
Dividend Growth(5Y)30.06%
DP65.03%
Div Incr Years0
Div Non Decr Years2
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)3.08%
PT rev (3m)8.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)38.43%
EPS NY rev (1m)0%
EPS NY rev (3m)12.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.7%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 19.54 | ||
| P/S | 5.96 | ||
| P/FCF | 25 | ||
| P/OCF | 13.1 | ||
| P/B | 2.27 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)3.54
EY3.81%
EPS(NY)4.76
Fwd EY5.12%
FCF(TTM)3.72
FCFY4%
OCF(TTM)7.09
OCFY7.63%
SpS15.59
BVpS40.89
TBVpS32.6
PEG (NY)0.3
PEG (5Y)0.54
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 | 3.75 |
F-Score6
WACC9.57%
ROIC/WACC0.71
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%