AGNICO EAGLE MINES LTD (AEM) Stock Fundamental Analysis
USA - NYSE:AEM - CA0084741085 - Common Stock
154.38 USD
+1.18 (+0.77%)
154.85 USD
+0.47 (+0.3%)
AEM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 156 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 a correct valuation and a medium growth rate. With these ratings, AEM could be worth investigating further for 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.
AEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AEM (9.34%) is better than 88.46% of its industry peers.
AEM's Return On Equity of 13.13% is amongst the best of the industry. AEM outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.16%, AEM belongs to the top of the industry, outperforming 87.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AEM is significantly below the industry average of 12.92%.
The 3 year average ROIC (5.95%) for AEM is below the current ROIC(11.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.34% | ||
| ROE | 13.13% | ||
| ROIC | 11.16% |
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
Looking at the Profit Margin, with a value of 30.63%, AEM belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
AEM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.34%, AEM belongs to the top of the industry, outperforming 95.51% of the companies in the same industry.
AEM's Operating Margin has improved in the last couple of years.
AEM's Gross Margin of 68.09% is amongst the best of the industry. AEM outperforms 95.51% of its industry peers.
In the last couple of years the Gross Margin of AEM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.34% | ||
| PM (TTM) | 30.63% | ||
| GM | 68.09% |
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 just above the Cost of Capital (WACC), so AEM is still creating some value.
Compared to 1 year ago, AEM has more shares outstanding
AEM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AEM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.09 indicates that AEM is not in any danger for bankruptcy at the moment.
AEM's Altman-Z score of 6.09 is fine compared to the rest of the industry. AEM outperforms 73.72% of its industry peers.
The Debt to FCF ratio of AEM is 0.24, which is an excellent value as it means it would take AEM, only 0.24 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.24, AEM belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
AEM has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
AEM has a Debt to Equity ratio of 0.03. This is in the better half of the industry: AEM outperforms 70.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.25
WACC8.92%
2.3 Liquidity
A Current Ratio of 2.03 indicates that AEM has no problem at all paying its short term obligations.
The Current ratio of AEM (2.03) is comparable to the rest of the industry.
AEM has a Quick Ratio of 1.16. 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 Quick ratio (1.16) than 60.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.69% 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.
AEM shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.28%.
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)106.69%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%81.31%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%35.61%
3.2 Future
AEM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.08% yearly.
The Revenue is expected to decrease by -3.66% on average over the next years.
EPS Next Y73.23%
EPS Next 2Y34.74%
EPS Next 3Y16.7%
EPS Next 5Y-4.08%
Revenue Next Year33.22%
Revenue Next 2Y18.14%
Revenue Next 3Y8.91%
Revenue Next 5Y-3.66%
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.
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
Based on the Price/Earnings ratio of 26.30, the valuation of AEM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AEM indicates a somewhat cheap valuation: AEM is cheaper than 72.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. AEM is around the same levels.
The Price/Forward Earnings ratio is 20.10, which indicates a rather expensive current valuation of AEM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AEM to the average of the S&P500 Index (22.88), we can say AEM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 20.1 |
4.2 Price Multiples
66.03% of the companies in the same industry are more expensive than AEM, based on the Enterprise Value to EBITDA ratio.
79.49% of the companies in the same industry are more expensive than AEM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.25 | ||
| EV/EBITDA | 12.68 |
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.
AEM's earnings are expected to grow with 16.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)0.77
EPS Next 2Y34.74%
EPS Next 3Y16.7%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, AEM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AEM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
23.87% of the earnings are spent on dividend by AEM. This is a low number and sustainable payout ratio.
DP23.87%
EPS Next 2Y34.74%
EPS Next 3Y16.7%
154.38
+1.18 (+0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.92%
Inst Owner Change-1.11%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap77.55B
Analysts83.75
Price Target146.67 (-4.99%)
Short Float %1.34%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend1.34
Dividend Growth(5Y)24.77%
DP23.87%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.22%
Min EPS beat(2)12.33%
Max EPS beat(2)14.11%
EPS beat(4)4
Avg EPS beat(4)10.59%
Min EPS beat(4)5.95%
Max EPS beat(4)14.11%
EPS beat(8)7
Avg EPS beat(8)10.88%
EPS beat(12)10
Avg EPS beat(12)11.44%
EPS beat(16)13
Avg EPS beat(16)13.04%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)1.49%
Max Revenue beat(2)9.49%
Revenue beat(4)3
Avg Revenue beat(4)2.79%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)9.49%
Revenue beat(8)6
Avg Revenue beat(8)3.24%
Revenue beat(12)7
Avg Revenue beat(12)1.84%
Revenue beat(16)10
Avg Revenue beat(16)2%
PT rev (1m)-3.73%
PT rev (3m)6.37%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)36.61%
EPS NY rev (1m)38.22%
EPS NY rev (3m)38.22%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)9.28%
Revenue NY rev (1m)5.78%
Revenue NY rev (3m)9.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 20.1 | ||
| P/S | 8.03 | ||
| P/FCF | 25.25 | ||
| P/OCF | 15.19 | ||
| P/B | 3.44 | ||
| P/tB | 4.22 | ||
| EV/EBITDA | 12.68 |
EPS(TTM)5.87
EY3.8%
EPS(NY)7.68
Fwd EY4.97%
FCF(TTM)6.11
FCFY3.96%
OCF(TTM)10.16
OCFY6.58%
SpS19.24
BVpS44.87
TBVpS36.6
PEG (NY)0.36
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.34% | ||
| ROE | 13.13% | ||
| ROCE | 14.94% | ||
| ROIC | 11.16% | ||
| ROICexc | 11.78% | ||
| ROICexgc | 13.8% | ||
| OM | 46.34% | ||
| PM (TTM) | 30.63% | ||
| GM | 68.09% | ||
| FCFM | 31.79% |
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-Score9
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 129.4% | ||
| Cap/Sales | 21.05% | ||
| Interest Coverage | 48.56 | ||
| Cash Conversion | 84.4% | ||
| Profit Quality | 103.78% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 6.09 |
F-Score9
WACC8.92%
ROIC/WACC1.25
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)106.69%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%81.31%
EPS Next Y73.23%
EPS Next 2Y34.74%
EPS Next 3Y16.7%
EPS Next 5Y-4.08%
Revenue 1Y (TTM)32.28%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%35.61%
Revenue Next Year33.22%
Revenue Next 2Y18.14%
Revenue Next 3Y8.91%
Revenue Next 5Y-3.66%
EBIT growth 1Y104.39%
EBIT growth 3Y42.69%
EBIT growth 5Y46.52%
EBIT Next Year107.37%
EBIT Next 3Y24.69%
EBIT Next 5Y8.03%
FCF growth 1Y350.06%
FCF growth 3Y68.02%
FCF growth 5YN/A
OCF growth 1Y119.38%
OCF growth 3Y43.33%
OCF growth 5Y35.05%