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AGNICO EAGLE MINES LTD (AEM.CA) Stock Fundamental Analysis

TSX:AEM - Toronto Stock Exchange - CA0084741085 - Common Stock - Currency: CAD

140.51  -3.3 (-2.29%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to AEM. AEM was compared to 818 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make AEM suitable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

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 4 of the past 5 years.
Of the past 5 years AEM 4 years had a positive operating cash flow.
AEM.CA Yearly Net Income VS EBIT VS OCF VS FCFAEM.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

1.2 Ratios

With an excellent Return On Assets value of 3.37%, AEM belongs to the best of the industry, outperforming 89.40% of the companies in the same industry.
AEM has a Return On Equity of 4.90%. This is amongst the best in the industry. AEM outperforms 89.67% of its industry peers.
With an excellent Return On Invested Capital value of 6.80%, AEM belongs to the best of the industry, outperforming 93.89% 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 11.89%.
The 3 year average ROIC (5.77%) for AEM is below the current ROIC(6.80%), indicating increased profibility in the last year.
Industry RankSector 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%
AEM.CA Yearly ROA, ROE, ROICAEM.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5

1.3 Margins

AEM's Profit Margin of 12.86% is amongst the best of the industry. AEM outperforms 94.16% of its industry peers.
AEM's Profit Margin has improved in the last couple of years.
AEM has a Operating Margin of 34.39%. This is amongst the best in the industry. AEM outperforms 97.15% 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 97.28% of its industry peers.
In the last couple of years the Gross Margin of AEM has grown nicely.
Industry RankSector 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%
AEM.CA Yearly Profit, Operating, Gross MarginsAEM.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEM is destroying value.
AEM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AEM.CA Yearly Shares OutstandingAEM.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
AEM.CA Yearly Total Debt VS Total AssetsAEM.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

An Altman-Z score of 3.87 indicates that AEM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.87, AEM is in the better half of the industry, outperforming 63.59% of the companies in the same industry.
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.
AEM has a Debt to FCF ratio of 0.87. This is amongst the best in the industry. AEM outperforms 94.29% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that AEM is not too dependend on debt financing.
The Debt to Equity ratio of AEM (0.06) is worse than 63.99% of its industry peers.
Although AEM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.87
Altman-Z 3.87
ROIC/WACC0.74
WACC9.17%
AEM.CA Yearly LT Debt VS Equity VS FCFAEM.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.75 indicates that AEM should not have too much problems paying its short term obligations.
The Current ratio of AEM (1.75) is comparable to the rest of the industry.
AEM has a Quick Ratio of 1.75. This is a bad value and indicates that AEM is not financially healthy enough and could expect problems in meeting its short term obligations.
AEM has a Quick ratio of 0.83. This is in the lower half of the industry: AEM underperforms 64.81% of its industry peers.
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 RankSector Rank
Current Ratio 1.75
Quick Ratio 0.83
AEM.CA Yearly Current Assets VS Current LiabilitesAEM.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

5

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.
Looking at the last year, AEM shows a very strong growth in Revenue. The Revenue has grown by 25.00%.
AEM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.77% yearly.
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 -2.65% on average over the next years.
The Revenue is expected to decrease by -0.57% on average over the next years.
EPS Next Y88.73%
EPS Next 2Y50.06%
EPS Next 3Y31.28%
EPS Next 5Y-2.65%
Revenue Next Year27.9%
Revenue Next 2Y19.97%
Revenue Next 3Y12.45%
Revenue Next 5Y-0.57%

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.
AEM.CA Yearly Revenue VS EstimatesAEM.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
AEM.CA Yearly EPS VS EstimatesAEM.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

8

4. Valuation

4.1 Price/Earnings Ratio

AEM is valuated quite expensively with a Price/Earnings ratio of 27.71.
Based on the Price/Earnings ratio, AEM is valued cheaper than 88.45% of the companies in the same industry.
AEM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.39.
With a Price/Forward Earnings ratio of 19.53, AEM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEM indicates a rather cheap valuation: AEM is cheaper than 88.72% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.38. AEM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 27.71
Fwd PE 19.53
AEM.CA Price Earnings VS Forward Price EarningsAEM.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AEM is valued cheaper than 90.35% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEM indicates a rather cheap valuation: AEM is cheaper than 92.93% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 26.39
EV/EBITDA 11.84
AEM.CA Per share dataAEM.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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 31.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)0.57
EPS Next 2Y50.06%
EPS Next 3Y31.28%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.52%, 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 7.63. AEM pays more dividend than 96.33% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.30, AEM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.52%

5.2 History

On average, the dividend of AEM grows each year by 30.06%, 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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)30.06%
Div Incr Years0
Div Non Decr Years10
AEM.CA Yearly Dividends per shareAEM.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

65.03% of the earnings are spent on dividend by AEM. This is not a sustainable payout ratio.
AEM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP65.03%
EPS Next 2Y50.06%
EPS Next 3Y31.28%
AEM.CA Yearly Income VS Free CF VS DividendAEM.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B
AEM.CA Dividend Payout.AEM.CA Dividend Payout, showing the Payout Ratio.AEM.CA Dividend Payout.PayoutRetained Earnings

AGNICO EAGLE MINES LTD

TSX:AEM (2/11/2025, 7:00:00 PM)

140.51

-3.3 (-2.29%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-13 2025-02-13/amc
Inst Owners70.92%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap70.47B
Analysts81.33
Price Target141.08 (0.41%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.52%
Yearly Dividend1.34
Dividend Growth(5Y)30.06%
DP65.03%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.88%
Min EPS beat(2)9.98%
Max EPS beat(2)15.78%
EPS beat(4)4
Avg EPS beat(4)15.7%
Min EPS beat(4)9.98%
Max EPS beat(4)23.15%
EPS beat(8)6
Avg EPS beat(8)10.73%
EPS beat(12)9
Avg EPS beat(12)14.65%
EPS beat(16)13
Avg EPS beat(16)13.04%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)1.25%
Max Revenue beat(2)5.09%
Revenue beat(4)4
Avg Revenue beat(4)4.5%
Min Revenue beat(4)1.25%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)1.6%
Revenue beat(12)7
Avg Revenue beat(12)1.61%
Revenue beat(16)10
Avg Revenue beat(16)1.7%
PT rev (1m)0.82%
PT rev (3m)13.94%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)34.08%
EPS NY rev (1m)0.87%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)-6.26%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.46%
Valuation
Industry RankSector Rank
PE 27.71
Fwd PE 19.53
P/S 6.29
P/FCF 26.39
P/OCF 13.83
P/B 2.4
P/tB 3.01
EV/EBITDA 11.84
EPS(TTM)5.07
EY3.61%
EPS(NY)7.19
Fwd EY5.12%
FCF(TTM)5.32
FCFY3.79%
OCF(TTM)10.16
OCFY7.23%
SpS22.33
BVpS58.57
TBVpS46.69
PEG (NY)0.31
PEG (5Y)0.57
Profitability
Industry RankSector Rank
ROA 3.37%
ROE 4.9%
ROCE 9.55%
ROIC 6.8%
ROICexc 7.05%
ROICexgc 8.32%
OM 34.39%
PM (TTM) 12.86%
GM 60.14%
FCFM 23.84%
ROA(3y)5.04%
ROA(5y)5.17%
ROE(3y)7.83%
ROE(5y)8.35%
ROIC(3y)5.77%
ROIC(5y)5.58%
ROICexc(3y)5.89%
ROICexc(5y)5.75%
ROICexgc(3y)6.45%
ROICexgc(5y)6.2%
ROCE(3y)8.1%
ROCE(5y)7.83%
ROICexcg growth 3Y-9.57%
ROICexcg growth 5Y20.57%
ROICexc growth 3Y-13.03%
ROICexc growth 5Y18.04%
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%
F-Score6
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.87
Debt/EBITDA 0.27
Cap/Depr 111.56%
Cap/Sales 21.65%
Interest Coverage 24.78
Cash Conversion 84.56%
Profit Quality 185.42%
Current Ratio 1.75
Quick Ratio 0.83
Altman-Z 3.87
F-Score6
WACC9.17%
ROIC/WACC0.74
Cap/Depr(3y)124.55%
Cap/Depr(5y)131.12%
Cap/Sales(3y)25.03%
Cap/Sales(5y)26.94%
Profit Quality(3y)70.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.01%
EPS 3Y6.23%
EPS 5Y48.38%
EPS Q2Q%159.09%
EPS Next Y88.73%
EPS Next 2Y50.06%
EPS Next 3Y31.28%
EPS Next 5Y-2.65%
Revenue 1Y (TTM)25%
Revenue growth 3Y28.3%
Revenue growth 5Y24.77%
Sales Q2Q%31.25%
Revenue Next Year27.9%
Revenue Next 2Y19.97%
Revenue Next 3Y12.45%
Revenue Next 5Y-0.57%
EBIT growth 1Y68.14%
EBIT growth 3Y27.34%
EBIT growth 5Y54.49%
EBIT Next Year139.52%
EBIT Next 3Y36.05%
EBIT Next 5Y11.17%
FCF growth 1Y208.85%
FCF growth 3Y29.34%
FCF growth 5YN/A
OCF growth 1Y79.8%
OCF growth 3Y29.71%
OCF growth 5Y33.84%