AGNICO EAGLE MINES LTD (AEM)
CA0084741085 - Common Stock
AEM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 155 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.
AEM had a positive operating cash flow in the past year.
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
AEM's Return On Assets of 3.37% is fine compared to the rest of the industry. AEM outperforms 69.68% of its industry peers.
AEM has a better Return On Equity (4.90%) than 68.39% of its industry peers.
AEM has a better Return On Invested Capital (6.80%) than 72.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AEM is below the industry average of 8.82%.
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
Looking at the Profit Margin, with a value of 12.86%, AEM belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Profit Margin of AEM has grown nicely.
AEM has a better Operating Margin (34.39%) than 92.90% of its industry peers.
AEM's Operating Margin has improved in the last couple of years.
AEM's Gross Margin of 60.14% is amongst the best of the industry. AEM outperforms 93.55% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
An Altman-Z score of 3.24 indicates that AEM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.24, AEM is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
The Debt to FCF ratio of AEM is 0.87, which is an excellent value as it means it would take AEM, only 0.87 years of fcf income to pay off all of its debts.
AEM's Debt to FCF ratio of 0.87 is amongst the best of the industry. AEM outperforms 87.10% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that AEM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, AEM is doing good in the industry, outperforming 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.7
WACC9.78%
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 has a worse Current ratio (1.75) than 65.16% of its industry peers.
A Quick Ratio of 0.83 indicates that AEM may have some problems paying its short term obligations.
The Quick ratio of AEM (0.83) is worse than 79.35% of its industry peers.
AEM does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 71.01% over the past year.
The Earnings Per Share has been growing by 48.38% on average over the past years. This is a very strong growth
Looking at the last year, AEM shows a very strong growth in Revenue. The Revenue has grown by 25.00%.
AEM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.77% yearly.
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 7.60% yearly.
Based on estimates for the next years, AEM will show a small growth in Revenue. The Revenue will grow by 2.95% on average per year.
EPS Next Y87.1%
EPS Next 2Y46.06%
EPS Next 3Y24.74%
EPS Next 5Y7.6%
Revenue Next Year27.6%
Revenue Next 2Y19.37%
Revenue Next 3Y11.78%
Revenue Next 5Y2.95%
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
A Price/Earnings ratio of 22.24 indicates a rather expensive valuation of AEM.
Compared to the rest of the industry, the Price/Earnings ratio of AEM indicates a somewhat cheap valuation: AEM is cheaper than 64.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AEM to the average of the S&P500 Index (27.54), we can say AEM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 16.55, the valuation of AEM can be described as correct.
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 (23.99), we can say AEM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
63.23% of the companies in the same industry are more expensive than AEM, based on the Enterprise Value to EBITDA ratio.
AEM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AEM is cheaper than 74.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.18 | ||
| EV/EBITDA | 9.54 |
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.
The excellent profitability rating of AEM may justify a higher PE ratio.
AEM's earnings are expected to grow with 24.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)0.46
EPS Next 2Y46.06%
EPS Next 3Y24.74%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.22, AEM pays a bit more dividend than its industry peers.
AEM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of AEM grows each year by 30.06%, which is quite nice.
AEM has paid a dividend for at least 10 years, which is 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
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
NYSE:AEM (12/24/2024, 7:54:10 PM)
After market: 78.73 0 (0%)78.73
-0.11 (-0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.92%
Inst Owner Change2.35%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap39.48B
Analysts83.53
Price Target94.39 (19.89%)
Short Float %1.05%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)30.06%
DP65.03%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)5.27%
PT rev (3m)6.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)38.43%
EPS NY rev (1m)4.67%
EPS NY rev (3m)77.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.7%
Revenue NY rev (1m)3.21%
Revenue NY rev (3m)17.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 16.55 | ||
| P/S | 5.05 | ||
| P/FCF | 21.18 | ||
| P/OCF | 11.1 | ||
| P/B | 1.93 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)3.54
EY4.5%
EPS(NY)4.76
Fwd EY6.04%
FCF(TTM)3.72
FCFY4.72%
OCF(TTM)7.09
OCFY9.01%
SpS15.59
BVpS40.89
TBVpS32.6
PEG (NY)0.26
PEG (5Y)0.46
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 | 3.24 |
F-Score6
WACC9.78%
ROIC/WACC0.7
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 5Y7.6%
Revenue 1Y (TTM)25%
Revenue growth 3Y28.3%
Revenue growth 5Y24.77%
Sales Q2Q%31.25%
Revenue Next Year27.6%
Revenue Next 2Y19.37%
Revenue Next 3Y11.78%
Revenue Next 5Y2.95%
EBIT growth 1Y68.14%
EBIT growth 3Y27.34%
EBIT growth 5Y54.49%
EBIT Next Year139.52%
EBIT Next 3Y36.05%
EBIT Next 5Y16.11%
FCF growth 1Y208.85%
FCF growth 3Y29.34%
FCF growth 5YN/A
OCF growth 1Y79.8%
OCF growth 3Y29.71%
OCF growth 5Y33.84%