AGNICO EAGLE MINES LTD (AEM.CA) Stock Fundamental Analysis
TSX:AEM - Toronto Stock Exchange - CA0084741085 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to AEM. AEM was compared to 808 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making AEM a very profitable company, without any liquidiy or solvency issues. 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.
AEM had a positive operating cash flow in the past year.
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 7.72% is amongst the best of the industry. AEM outperforms 91.83% of its industry peers.
The Return On Equity of AEM (10.92%) is better than 92.20% of its industry peers.
The Return On Invested Capital of AEM (9.60%) is better than 94.80% of its industry peers.
AEM had an Average Return On Invested Capital over the past 3 years of 5.95%. This is significantly below the industry average of 12.36%.
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
The Profit Margin of AEM (26.48%) is better than 96.41% of its industry peers.
In the last couple of years the Profit Margin of AEM has grown nicely.
Looking at the Operating Margin, with a value of 42.24%, AEM belongs to the top of the industry, outperforming 97.77% of the companies in the same industry.
In the last couple of years the Operating Margin of AEM has grown nicely.
Looking at the Gross Margin, with a value of 65.64%, AEM belongs to the top of the industry, outperforming 98.02% 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.
AEM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AEM has more shares outstanding
The debt/assets ratio for AEM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.94 indicates that AEM is not in any danger for bankruptcy at the moment.
AEM has a Altman-Z score of 4.94. This is in the better half of the industry: AEM outperforms 66.09% of its industry peers.
AEM has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
AEM has a Debt to FCF ratio of 0.55. This is amongst the best in the industry. AEM outperforms 95.42% of its industry peers.
AEM has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
AEM's Debt to Equity ratio of 0.05 is in line compared to the rest of the industry. AEM outperforms 41.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.23
WACC7.8%
2.3 Liquidity
A Current Ratio of 2.37 indicates that AEM has no problem at all paying its short term obligations.
With a Current ratio value of 2.37, AEM perfoms like the industry average, outperforming 58.04% of the companies in the same 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 (1.20) which is in line with 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.
AEM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.97% yearly.
The Revenue has grown by 28.46% in the past year. This is a very strong growth!
The Revenue has been growing by 27.13% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, AEM will show a decrease in Revenue. The Revenue will decrease by -0.96% on average per year.
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
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
Based on the Price/Earnings ratio of 24.06, the valuation of AEM can be described as rather expensive.
Based on the Price/Earnings ratio, AEM is valued cheaply inside the industry as 89.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AEM to the average of the S&P500 Index (27.45), we can say AEM is valued inline with the index average.
The Price/Forward Earnings ratio is 22.73, which indicates a rather expensive current valuation of AEM.
Based on the Price/Forward Earnings ratio, AEM is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
AEM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 22.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEM is valued cheaper than 91.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AEM is valued cheaper than 92.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.99 | ||
| EV/EBITDA | 11.32 |
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)0.95
PEG (5Y)0.71
EPS Next 2Y11.82%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, AEM pays a better dividend. On top of this AEM pays more dividend than 96.91% of the companies listed in the same industry.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
AEM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.77%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
AEM pays out 29.20% of its income as dividend. This is a sustainable payout ratio.
AEM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.2%
EPS Next 2Y11.82%
EPS Next 3Y4.75%
TSX:AEM (7/4/2025, 7:00:00 PM)
163.36
+0.22 (+0.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners71.92%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap82.12B
Analysts83.53
Price Target194.64 (19.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.84
Dividend Growth(5Y)24.77%
DP29.2%
Div Incr Years0
Div Non Decr Years11
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)6.82%
PT rev (3m)29.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.23%
EPS NY rev (1m)0%
EPS NY rev (3m)6.77%
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 | 24.06 | ||
| Fwd PE | 22.73 | ||
| P/S | 6.77 | ||
| P/FCF | 25.99 | ||
| P/OCF | 14.31 | ||
| P/B | 2.79 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)6.79
EY4.16%
EPS(NY)7.19
Fwd EY4.4%
FCF(TTM)6.29
FCFY3.85%
OCF(TTM)11.41
OCFY6.99%
SpS24.12
BVpS58.5
TBVpS47.26
PEG (NY)0.95
PEG (5Y)0.71
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 | 4.94 |
F-Score8
WACC7.8%
ROIC/WACC1.23
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%