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 807 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 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
In the past year AEM was profitable.
AEM had a positive operating cash flow in the past year.
AEM had positive earnings in each of the past 5 years.
Each year in the past 5 years AEM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.72%, AEM belongs to the best of the industry, outperforming 91.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.92%, AEM belongs to the top of the industry, outperforming 92.07% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.60%, AEM belongs to the best of the industry, outperforming 94.67% 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 12.23%.
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
AEM has a better Profit Margin (26.48%) than 96.53% of its industry peers.
In the last couple of years the Profit Margin of AEM has grown nicely.
AEM has a better Operating Margin (42.24%) than 97.89% 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 65.64%, AEM belongs to the top of the industry, outperforming 98.02% of the companies in the same industry.
AEM's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AEM is still creating some value.
AEM has more shares outstanding than it did 1 year ago.
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 4.87 indicates that AEM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.87, AEM is doing good in the industry, outperforming 66.91% of the companies in the same industry.
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 95.29% 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.
Looking at the Debt to Equity ratio, with a value of 0.05, AEM is in line with its industry, outperforming 41.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.12
WACC8.6%
2.3 Liquidity
AEM has a Current Ratio of 2.37. This indicates that AEM is financially healthy and has no problem in meeting 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 (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.61% 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.
The Revenue has grown by 28.46% in the past year. This is a very strong growth!
AEM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.13% yearly.
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
The Earnings Per Share is expected to grow by 0.79% on average over the next years.
Based on estimates for the next years, AEM will show a decrease in Revenue. The Revenue will decrease by -0.94% on average per year.
EPS Next Y25.33%
EPS Next 2Y11.82%
EPS Next 3Y4.75%
EPS Next 5Y0.79%
Revenue Next Year22.03%
Revenue Next 2Y10.06%
Revenue Next 3Y6.59%
Revenue Next 5Y-0.94%
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 23.59.
Based on the Price/Earnings ratio, AEM is valued cheaper than 89.47% of the companies in the same industry.
AEM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.53.
Based on the Price/Forward Earnings ratio of 22.30, the valuation of AEM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEM indicates a rather cheap valuation: AEM is cheaper than 87.86% of the companies listed in the same industry.
AEM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 22.3 |
4.2 Price Multiples
AEM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AEM is cheaper than 91.82% 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 92.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.51 | ||
| EV/EBITDA | 11.12 |
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.
PEG (NY)0.93
PEG (5Y)0.69
EPS Next 2Y11.82%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
AEM has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 2.62, AEM pays a better dividend. On top of this AEM pays more dividend than 97.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AEM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)24.77%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
29.20% of the earnings are spent on dividend by AEM. This is a low number and 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 (6/6/2025, 7:00:00 PM)
161.6
-5.21 (-3.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap81.24B
Analysts83.53
Price Target189.04 (16.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)13.3%
PT rev (3m)31.29%
EPS NQ rev (1m)2.08%
EPS NQ rev (3m)7.42%
EPS NY rev (1m)0%
EPS NY rev (3m)6.77%
Revenue NQ rev (1m)5.11%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 22.3 | ||
| P/S | 6.65 | ||
| P/FCF | 25.51 | ||
| P/OCF | 14.05 | ||
| P/B | 2.74 | ||
| P/tB | 3.39 | ||
| EV/EBITDA | 11.12 |
EPS(TTM)6.85
EY4.24%
EPS(NY)7.25
Fwd EY4.48%
FCF(TTM)6.34
FCFY3.92%
OCF(TTM)11.5
OCFY7.12%
SpS24.32
BVpS58.97
TBVpS47.64
PEG (NY)0.93
PEG (5Y)0.69
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 | 4.87 |
F-Score8
WACC8.6%
ROIC/WACC1.12
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 5Y0.79%
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-0.94%
EBIT growth 1Y101.89%
EBIT growth 3Y42.69%
EBIT growth 5Y46.52%
EBIT Next Year107.37%
EBIT Next 3Y24.69%
EBIT Next 5Y7.91%
FCF growth 1Y281.95%
FCF growth 3Y68.02%
FCF growth 5YN/A
OCF growth 1Y88.58%
OCF growth 3Y43.33%
OCF growth 5Y35.05%