AGNICO EAGLE MINES LTD (AEM) Stock Fundamental Analysis
NYSE:AEM - New York Stock Exchange, Inc. - CA0084741085 - Common Stock - Currency: USD
Overall AEM gets a fundamental rating of 7 out of 10. We evaluated AEM against 150 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make AEM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
AEM had positive earnings in the past year.
In the past year AEM had a positive cash flow from operations.
Each year in the past 5 years AEM has been profitable.
AEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AEM's Return On Assets of 6.32% is fine compared to the rest of the industry. AEM outperforms 79.58% of its industry peers.
The Return On Equity of AEM (9.10%) is better than 73.94% of its industry peers.
AEM's Return On Invested Capital of 8.36% is fine compared to the rest of the industry. AEM outperforms 79.58% of its industry peers.
AEM had an Average Return On Invested Capital over the past 3 years of 5.95%. This is below the industry average of 8.67%.
The last Return On Invested Capital (8.36%) for AEM is above the 3 year average (5.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.1% | ||
| ROIC | 8.36% |
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 (22.88%) than 93.66% of its industry peers.
In the last couple of years the Profit Margin of AEM has grown nicely.
AEM has a Operating Margin of 38.46%. This is amongst the best in the industry. AEM outperforms 93.66% of its industry peers.
In the last couple of years the Operating Margin of AEM has grown nicely.
Looking at the Gross Margin, with a value of 62.80%, AEM belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
In the last couple of years the Gross Margin of AEM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.46% | ||
| PM (TTM) | 22.88% | ||
| GM | 62.8% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEM is destroying value.
The number of shares outstanding for AEM has been increased compared to 1 year ago.
AEM has more shares outstanding than it did 5 years ago.
AEM has a better debt/assets ratio than last year.
2.2 Solvency
AEM has an Altman-Z score of 3.95. This indicates that AEM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AEM (3.95) is better than 66.20% of its industry peers.
AEM has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.60, AEM belongs to the top of the industry, outperforming 90.85% 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.
AEM has a Debt to Equity ratio of 0.06. This is in the better half of the industry: AEM outperforms 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 3.95 |
ROIC/WACC0.89
WACC9.41%
2.3 Liquidity
AEM has a Current Ratio of 1.86. This is a normal value and indicates that AEM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.86, AEM is in line with its industry, outperforming 41.55% of the companies in the same industry.
AEM has a Quick Ratio of 1.86. This is a bad value and indicates that AEM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, AEM is doing worse than 76.06% of the companies in the same industry.
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 | 1.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.69% 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 33.97% on average per year.
Looking at the last year, AEM shows a very strong growth in Revenue. The Revenue has grown by 25.03%.
Measured over the past years, AEM shows a very strong growth in Revenue. The Revenue has been growing by 27.13% on average per year.
EPS 1Y (TTM)89.69%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%121.05%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%26.59%
3.2 Future
The Earnings Per Share is expected to grow by 1.54% on average over the next years.
AEM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.28% yearly.
EPS Next Y17.38%
EPS Next 2Y7.82%
EPS Next 3Y1.07%
EPS Next 5Y1.54%
Revenue Next Year13.33%
Revenue Next 2Y6.65%
Revenue Next 3Y6.16%
Revenue Next 5Y2.28%
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
AEM is valuated rather expensively with a Price/Earnings ratio of 22.68.
Based on the Price/Earnings ratio, AEM is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
AEM is valuated rather cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.32, AEM is valued on the expensive side.
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 (22.44), we can say AEM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
AEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AEM is cheaper than 63.38% of the companies in the same industry.
AEM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AEM is cheaper than 72.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.66 | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AEM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)0.67
EPS Next 2Y7.82%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
AEM's Dividend Yield is a higher than the industry average which is at 3.21.
AEM's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of AEM is nicely growing with an annual growth rate of 24.77%!
AEM has paid a dividend for at least 10 years, which is a reliable track record.
AEM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.77%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
35.43% of the earnings are spent on dividend by AEM. This is a low number and sustainable payout ratio.
The dividend of AEM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.43%
EPS Next 2Y7.82%
EPS Next 3Y1.07%
95.93
-0.35 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner Change4.18%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap48.18B
Analysts81.33
Price Target98.22 (2.39%)
Short Float %1.04%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.34
Dividend Growth(5Y)24.77%
DP35.43%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.26%
Min EPS beat(2)4.54%
Max EPS beat(2)9.98%
EPS beat(4)4
Avg EPS beat(4)13.37%
Min EPS beat(4)4.54%
Max EPS beat(4)23.15%
EPS beat(8)7
Avg EPS beat(8)11.51%
EPS beat(12)10
Avg EPS beat(12)16.52%
EPS beat(16)13
Avg EPS beat(16)13.18%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)1.25%
Revenue beat(4)3
Avg Revenue beat(4)2.79%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)1.88%
Revenue beat(12)6
Avg Revenue beat(12)1.48%
Revenue beat(16)10
Avg Revenue beat(16)1.7%
PT rev (1m)0%
PT rev (3m)3.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.97%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 19.32 | ||
| P/S | 5.82 | ||
| P/FCF | 22.66 | ||
| P/OCF | 12.16 | ||
| P/B | 2.31 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)4.23
EY4.41%
EPS(NY)4.97
Fwd EY5.18%
FCF(TTM)4.23
FCFY4.41%
OCF(TTM)7.89
OCFY8.22%
SpS16.5
BVpS41.48
TBVpS33.2
PEG (NY)1.3
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.1% | ||
| ROCE | 11.19% | ||
| ROIC | 8.36% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 10.19% | ||
| OM | 38.46% | ||
| PM (TTM) | 22.88% | ||
| GM | 62.8% | ||
| FCFM | 25.67% |
ROA(3y)5.31%
ROA(5y)5.35%
ROE(3y)7.74%
ROE(5y)8.32%
ROIC(3y)5.95%
ROIC(5y)6.64%
ROICexc(3y)6.12%
ROICexc(5y)6.83%
ROICexgc(3y)7.08%
ROICexgc(5y)7.56%
ROCE(3y)7.96%
ROCE(5y)8.88%
ROICexcg growth 3Y3.23%
ROICexcg growth 5Y15.99%
ROICexc growth 3Y-0.77%
ROICexc growth 5Y13.49%
OM growth 3Y10.7%
OM growth 5Y15.25%
PM growth 3Y16.36%
PM growth 5Y3.82%
GM growth 3Y4.57%
GM growth 5Y4.67%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 121.15% | ||
| Cap/Sales | 22.14% | ||
| Interest Coverage | 30.73 | ||
| Cash Conversion | 84.26% | ||
| Profit Quality | 112.19% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 3.95 |
F-Score6
WACC9.41%
ROIC/WACC0.89
Cap/Depr(3y)124.43%
Cap/Depr(5y)123.02%
Cap/Sales(3y)24.69%
Cap/Sales(5y)24.29%
Profit Quality(3y)81.25%
Profit Quality(5y)81.62%
High Growth Momentum
Growth
EPS 1Y (TTM)89.69%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%121.05%
EPS Next Y17.38%
EPS Next 2Y7.82%
EPS Next 3Y1.07%
EPS Next 5Y1.54%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%26.59%
Revenue Next Year13.33%
Revenue Next 2Y6.65%
Revenue Next 3Y6.16%
Revenue Next 5Y2.28%
EBIT growth 1Y84.19%
EBIT growth 3Y42.69%
EBIT growth 5Y46.52%
EBIT Next Year68.59%
EBIT Next 3Y14.68%
EBIT Next 5Y10.3%
FCF growth 1Y127.09%
FCF growth 3Y68.02%
FCF growth 5YN/A
OCF growth 1Y52.25%
OCF growth 3Y43.33%
OCF growth 5Y35.05%