AGNICO EAGLE MINES LTD (AEM) Stock Fundamental Analysis
NYSE:AEM - New York Stock Exchange, Inc. - CA0084741085 - Common Stock - Currency: USD
AEM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 154 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 has a decent growth rate and is not valued too expensively. 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.
AEM had a positive operating cash flow in the past year.
AEM had positive earnings in each of the past 5 years.
AEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AEM has a better Return On Assets (7.72%) than 85.06% of its industry peers.
AEM has a better Return On Equity (10.92%) than 79.87% of its industry peers.
With an excellent Return On Invested Capital value of 9.60%, AEM belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AEM is significantly below the industry average of 11.67%.
The 3 year average ROIC (5.95%) for AEM is below the current ROIC(9.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 10.92% | ||
| ROIC | 9.6% |
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 26.48%, AEM belongs to the top of the industry, outperforming 94.16% 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 (42.24%) than 93.51% of its industry peers.
In the last couple of years the Operating Margin of AEM has grown nicely.
With an excellent Gross Margin value of 65.64%, AEM belongs to the best of the industry, outperforming 96.10% 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 | 42.24% | ||
| PM (TTM) | 26.48% | ||
| GM | 65.64% |
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.
The number of shares outstanding for AEM has been increased compared to 1 year ago.
Compared to 5 years ago, AEM has more shares outstanding
Compared to 1 year ago, AEM has an improved debt to assets ratio.
2.2 Solvency
AEM has an Altman-Z score of 4.81. This indicates that AEM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.81, AEM is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
The Debt to FCF ratio of AEM is 0.55, which is an excellent value as it means it would take AEM, only 0.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.55, AEM belongs to the top of the industry, outperforming 92.21% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that AEM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, AEM is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.22
WACC7.86%
2.3 Liquidity
A Current Ratio of 2.37 indicates that AEM has no problem at all paying its short term obligations.
AEM has a Current ratio (2.37) which is comparable to the rest of the industry.
AEM has a Quick Ratio of 1.20. 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 Quick ratio of 1.20. This is comparable to the rest of the industry: AEM outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
AEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.61%, 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
Looking at the last year, AEM shows a very strong growth in Revenue. The Revenue has grown by 28.46%.
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)106.61%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%101.32%
Revenue 1Y (TTM)28.46%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%34.89%
3.2 Future
Based on estimates for the next years, AEM will show a small growth in Earnings Per Share. The EPS will grow by 0.81% on average per year.
AEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.96% yearly.
EPS Next Y25.33%
EPS Next 2Y11.82%
EPS Next 3Y4.75%
EPS Next 5Y0.81%
Revenue Next Year22.03%
Revenue Next 2Y10.06%
Revenue Next 3Y6.59%
Revenue Next 5Y-0.96%
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
The Price/Earnings ratio is 23.79, which indicates a rather expensive current valuation of AEM.
70.78% of the companies in the same industry are more expensive than AEM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AEM to the average of the S&P500 Index (26.98), we can say AEM is valued inline with the index average.
The Price/Forward Earnings ratio is 22.48, 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.
The average S&P500 Price/Forward Earnings ratio is at 21.49. AEM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 22.48 |
4.2 Price Multiples
AEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AEM is cheaper than 65.58% 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 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.71 | ||
| EV/EBITDA | 10.95 |
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.
PEG (NY)0.94
PEG (5Y)0.7
EPS Next 2Y11.82%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, AEM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, AEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.33, AEM pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of AEM grows each year by 24.77%, which is quite nice.
AEM has paid a dividend for at least 10 years, which is 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
29.20% 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.
DP29.2%
EPS Next 2Y11.82%
EPS Next 3Y4.75%
118.93
+2.81 (+2.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.92%
Inst Owner Change3.56%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap59.79B
Analysts83.53
Price Target142.12 (19.5%)
Short Float %1.76%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.34
Dividend Growth(5Y)24.77%
DP29.2%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.14%
Min EPS beat(2)5.95%
Max EPS beat(2)12.33%
EPS beat(4)4
Avg EPS beat(4)11.01%
Min EPS beat(4)5.95%
Max EPS beat(4)15.78%
EPS beat(8)7
Avg EPS beat(8)11.21%
EPS beat(12)10
Avg EPS beat(12)12.68%
EPS beat(16)13
Avg EPS beat(16)13.25%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)1.49%
Revenue beat(4)3
Avg Revenue beat(4)1.69%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)5.09%
Revenue beat(8)5
Avg Revenue beat(8)1.98%
Revenue beat(12)6
Avg Revenue beat(12)0.97%
Revenue beat(16)10
Avg Revenue beat(16)1.72%
PT rev (1m)7.74%
PT rev (3m)28.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.23%
EPS NY rev (1m)0%
EPS NY rev (3m)7.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 22.48 | ||
| P/S | 6.7 | ||
| P/FCF | 25.71 | ||
| P/OCF | 14.16 | ||
| P/B | 2.76 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)5
EY4.2%
EPS(NY)5.29
Fwd EY4.45%
FCF(TTM)4.63
FCFY3.89%
OCF(TTM)8.4
OCFY7.06%
SpS17.75
BVpS43.05
TBVpS34.78
PEG (NY)0.94
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 10.92% | ||
| ROCE | 12.84% | ||
| ROIC | 9.6% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 11.72% | ||
| OM | 42.24% | ||
| PM (TTM) | 26.48% | ||
| GM | 65.64% | ||
| FCFM | 26.06% |
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-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 120.53% | ||
| Cap/Sales | 21.25% | ||
| Interest Coverage | 47.34 | ||
| Cash Conversion | 79.01% | ||
| Profit Quality | 98.4% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.81 |
F-Score8
WACC7.86%
ROIC/WACC1.22
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)106.61%
EPS 3Y20.13%
EPS 5Y33.97%
EPS Q2Q%101.32%
EPS Next Y25.33%
EPS Next 2Y11.82%
EPS Next 3Y4.75%
EPS Next 5Y0.81%
Revenue 1Y (TTM)28.46%
Revenue growth 3Y28.89%
Revenue growth 5Y27.13%
Sales Q2Q%34.89%
Revenue Next Year22.03%
Revenue Next 2Y10.06%
Revenue Next 3Y6.59%
Revenue Next 5Y-0.96%
EBIT growth 1Y101.89%
EBIT growth 3Y42.69%
EBIT growth 5Y46.52%
EBIT Next Year107.37%
EBIT Next 3Y24.69%
EBIT Next 5Y7.92%
FCF growth 1Y281.95%
FCF growth 3Y68.02%
FCF growth 5YN/A
OCF growth 1Y88.58%
OCF growth 3Y43.33%
OCF growth 5Y35.05%