AGNICO EAGLE MINES LTD (AEM) Stock Fundamental Analysis
NYSE:AEM - New York Stock Exchange, Inc. - CA0084741085 - Common Stock - Currency: USD
Taking everything into account, AEM scores 7 out of 10 in our fundamental rating. AEM was compared to 155 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. 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.
In the past year AEM had a positive cash flow from operations.
In the past 5 years AEM has always been profitable.
In the past 5 years AEM always reported a positive cash flow from operatings.
1.2 Ratios
AEM has a Return On Assets of 7.72%. This is amongst the best in the industry. AEM outperforms 84.52% of its industry peers.
The Return On Equity of AEM (10.92%) is better than 79.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.60%, AEM belongs to the top of the industry, outperforming 84.52% 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 11.10%.
The last Return On Invested Capital (9.60%) for AEM is above the 3 year average (5.95%), which is a sign of increasing profitability.
| 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 94.19% of its industry peers.
In the last couple of years the Profit Margin of AEM has grown nicely.
The Operating Margin of AEM (42.24%) is better than 94.19% of its industry peers.
AEM's Operating Margin has improved in the last couple of years.
AEM has a better Gross Margin (65.64%) than 96.13% of its industry peers.
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
AEM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
AEM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.89 indicates that AEM is not in any danger for bankruptcy at the moment.
AEM's Altman-Z score of 4.89 is fine compared to the rest of the industry. AEM outperforms 74.19% of its industry peers.
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.
AEM's Debt to FCF ratio of 0.55 is amongst the best of the industry. AEM outperforms 91.61% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that AEM is not too dependend on debt financing.
The Debt to Equity ratio of AEM (0.05) is better than 68.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 4.89 |
ROIC/WACC1.12
WACC8.6%
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 in line with its industry peers.
A Quick Ratio of 1.20 indicates that AEM should not have too much problems paying 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!
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 0.79% on average per year.
AEM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.94% yearly.
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
The Price/Earnings ratio is 23.41, which indicates a rather expensive current valuation of AEM.
70.97% of the companies in the same industry are more expensive than AEM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.59, AEM is valued at the same level.
A Price/Forward Earnings ratio of 22.13 indicates a rather expensive 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 (22.39), we can say AEM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 22.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEM indicates a somewhat cheap valuation: AEM is cheaper than 64.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AEM is valued a bit cheaper than the industry average as 74.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.31 | ||
| EV/EBITDA | 11.17 |
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.
The excellent profitability rating of AEM may justify a higher PE ratio.
PEG (NY)0.92
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.85, AEM pays a bit more dividend than its industry peers.
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
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
AEM pays out 29.20% of its income as dividend. This is a 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%
117.05
-1.45 (-1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner Change3.56%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap58.84B
Analysts83.53
Price Target137.88 (17.8%)
Short Float %1.15%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)14.3%
PT rev (3m)32.96%
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)9.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 22.13 | ||
| P/S | 6.59 | ||
| P/FCF | 25.31 | ||
| P/OCF | 13.94 | ||
| P/B | 2.72 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 11.17 |
EPS(TTM)5
EY4.27%
EPS(NY)5.29
Fwd EY4.52%
FCF(TTM)4.63
FCFY3.95%
OCF(TTM)8.4
OCFY7.18%
SpS17.75
BVpS43.05
TBVpS34.78
PEG (NY)0.92
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 | 4.89 |
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%