AGNICO EAGLE MINES LTD (AEM)
CA0084741085 - Common Stock
Taking everything into account, AEM scores 6 out of 10 in our fundamental rating. AEM was compared to 157 industry peers in the Metals & Mining industry. AEM has an excellent profitability rating, but there are some minor concerns on its financial health. AEM has a correct valuation and a medium 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 67.52% of its industry peers.
With a decent Return On Equity value of 4.90%, AEM is doing good in the industry, outperforming 66.24% of the companies in the same industry.
The Return On Invested Capital of AEM (6.80%) is better than 71.97% of its industry peers.
AEM had an Average Return On Invested Capital over the past 3 years of 5.77%. This is below the industry average of 8.31%.
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
Looking at the Profit Margin, with a value of 12.86%, AEM belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
AEM's Profit Margin has improved in the last couple of years.
AEM's Operating Margin of 34.39% is amongst the best of the industry. AEM outperforms 92.36% of its industry peers.
In the last couple of years the Operating Margin of AEM has grown nicely.
AEM's Gross Margin of 60.14% is amongst the best of the industry. AEM outperforms 93.63% of its industry peers.
In the last couple of years the Gross Margin of AEM has grown nicely.
| 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.
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
An Altman-Z score of 3.40 indicates that AEM is not in any danger for bankruptcy at the moment.
AEM has a better Altman-Z score (3.40) than 61.15% of its industry peers.
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.
The Debt to FCF ratio of AEM (0.87) is better than 87.26% of its industry peers.
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 64.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.69
WACC9.81%
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.
With a Current ratio value of 1.75, AEM is not doing good in the industry: 66.24% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that AEM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, AEM is doing worse than 80.25% of the companies in the same industry.
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
The Earnings Per Share has grown by an impressive 71.01% over the past year.
Measured over the past years, AEM shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.38% on average per year.
The Revenue has grown by 25.00% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to decrease by -1.47% on average over the next years.
The Revenue is expected to decrease by -0.58% on average over the next years.
EPS Next Y78.76%
EPS Next 2Y45.28%
EPS Next 3Y23.31%
EPS Next 5Y-1.47%
Revenue Next Year23.63%
Revenue Next 2Y15.73%
Revenue Next 3Y8.45%
Revenue Next 5Y-0.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 23.81, AEM is valued on the expensive side.
Based on the Price/Earnings ratio, AEM is valued a bit cheaper than 64.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. AEM is around the same levels.
The Price/Forward Earnings ratio is 17.91, which indicates a rather expensive current valuation of AEM.
AEM's Price/Forward Earnings ratio is in line with the industry average.
AEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
AEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AEM is cheaper than 64.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AEM is valued a bit cheaper than the industry average as 76.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.68 | ||
| EV/EBITDA | 10.11 |
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 23.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)0.49
EPS Next 2Y45.28%
EPS Next 3Y23.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, AEM has a reasonable but not impressive dividend return.
AEM's Dividend Yield is rather good when compared to the industry average which is at 2.98. AEM pays more dividend than 80.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, AEM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 decreased its dividend 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 Rate of AEM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP65.03%
EPS Next 2Y45.28%
EPS Next 3Y23.31%
AGNICO EAGLE MINES LTD
NYSE:AEM (11/22/2024, 8:21:54 PM)
After market: 84.5 +0.2 (+0.24%)84.3
+0.73 (+0.87%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Dividend Growth(5Y)
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Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 17.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.3
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 4.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.39% | ||
| PM (TTM) | 12.86% | ||
| GM | 60.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.75 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)71.01%
EPS 3Y6.23%
EPS 5Y
EPS Q2Q%
EPS Next Y78.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25%
Revenue growth 3Y28.3%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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