AGNICO EAGLE MINES LTD (AEM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AEM - CA0084741085 - Common Stock
215.41 USD
+0.87 (+0.41%)
217.9 USD
+2.49 (+1.16%)
We assign a fundamental rating of 7 out of 10 to AEM. AEM was compared to 154 industry peers in the Metals & Mining industry. AEM gets an excellent profitability rating and is at the same time showing great financial health properties. AEM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make AEM suitable for value and growth 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.
- In the past 5 years AEM has always been profitable.
- Each year in the past 5 years AEM had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 10.55%, AEM belongs to the best of the industry, outperforming 90.26% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.67%, AEM belongs to the top of the industry, outperforming 87.01% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.78%, AEM belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- AEM had an Average Return On Invested Capital over the past 3 years of 5.95%. This is below the industry average of 10.32%.
- The last Return On Invested Capital (12.78%) for AEM is above the 3 year average (5.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.55% | ||
| ROE | 14.67% | ||
| ROIC | 12.78% |
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
- AEM has a better Profit Margin (32.62%) than 94.81% of its industry peers.
- In the last couple of years the Profit Margin of AEM has grown nicely.
- AEM's Operating Margin of 49.49% is amongst the best of the industry. AEM outperforms 94.81% of its industry peers.
- In the last couple of years the Operating Margin of AEM has grown nicely.
- AEM has a better Gross Margin (70.29%) than 95.45% of its industry peers.
- AEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.49% | ||
| PM (TTM) | 32.62% | ||
| GM | 70.29% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AEM is creating some value.
- Compared to 1 year ago, AEM has more shares outstanding
- 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 8.20 indicates that AEM is not in any danger for bankruptcy at the moment.
- AEM has a Altman-Z score of 8.20. This is in the better half of the industry: AEM outperforms 73.38% of its industry peers.
- The Debt to FCF ratio of AEM is 0.09, which is an excellent value as it means it would take AEM, only 0.09 years of fcf income to pay off all of its debts.
- AEM has a Debt to FCF ratio of 0.09. This is amongst the best in the industry. AEM outperforms 95.45% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that AEM is not too dependend on debt financing.
- The Debt to Equity ratio of AEM (0.01) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 8.2 |
ROIC/WACC1.31
WACC9.76%
2.3 Liquidity
- AEM has a Current Ratio of 2.12. This indicates that AEM is financially healthy and has no problem in meeting its short term obligations.
- AEM has a Current ratio of 2.12. This is comparable to the rest of the industry: AEM outperforms 43.51% of its industry peers.
- A Quick Ratio of 1.31 indicates that AEM should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.31, AEM perfoms like the industry average, outperforming 42.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
- AEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.63%, which is quite impressive.
- The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
- The Revenue has grown by 35.16% in the past year. This is a very strong growth!
- AEM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.13% yearly.
EPS 1Y (TTM)94.63%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%89.47%
Revenue 1Y (TTM)35.16%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%41.93%
3.2 Future
- Based on estimates for the next years, AEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.45% on average per year.
- The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y93.25%
EPS Next 2Y61.33%
EPS Next 3Y38.57%
EPS Next 5Y8.45%
Revenue Next Year39.47%
Revenue Next 2Y29.07%
Revenue Next 3Y18.21%
Revenue Next 5Y3.75%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 31.26, which means the current valuation is very expensive for AEM.
- AEM's Price/Earnings ratio is a bit cheaper when compared to the industry. AEM is cheaper than 74.68% of the companies in the same industry.
- AEM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 19.57, AEM is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AEM indicates a somewhat cheap valuation: AEM is cheaper than 63.64% of the companies listed in the same industry.
- AEM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AEM is valued a bit cheaper than the industry average as 66.88% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AEM is valued cheaply inside the industry as 83.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.65 | ||
| EV/EBITDA | 15.49 |
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.
- AEM's earnings are expected to grow with 38.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.92
EPS Next 2Y61.33%
EPS Next 3Y38.57%
5. Dividend
5.1 Amount
- AEM has a yearly dividend return of 0.76%, which is pretty low.
- AEM's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.76, AEM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 in the last 3 years.
Dividend Growth(5Y)24.77%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- AEM pays out 20.78% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.78%
EPS Next 2Y61.33%
EPS Next 3Y38.57%
AGNICO EAGLE MINES LTD / AEM FAQ
What is the fundamental rating for AEM stock?
ChartMill assigns a fundamental rating of 7 / 10 to AEM.
Can you provide the valuation status for AGNICO EAGLE MINES LTD?
ChartMill assigns a valuation rating of 7 / 10 to AGNICO EAGLE MINES LTD (AEM). This can be considered as Undervalued.
Can you provide the profitability details for AGNICO EAGLE MINES LTD?
AGNICO EAGLE MINES LTD (AEM) has a profitability rating of 9 / 10.
What are the PE and PB ratios of AGNICO EAGLE MINES LTD (AEM) stock?
The Price/Earnings (PE) ratio for AGNICO EAGLE MINES LTD (AEM) is 31.26 and the Price/Book (PB) ratio is 4.6.
Is the dividend of AGNICO EAGLE MINES LTD sustainable?
The dividend rating of AGNICO EAGLE MINES LTD (AEM) is 5 / 10 and the dividend payout ratio is 20.78%.