TSX:AEM

Stock Analysis Report

Agnico Eagle Mines

Executive Summary

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Agnico Eagle Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AEM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

AEM

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

23.1%

AEM

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: AEM exceeded the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: AEM exceeded the Canadian Market which returned 4.5% over the past year.


Shareholder returns

AEMIndustryMarket
7 Day6.7%3.5%-1.5%
30 Day-13.9%5.0%-0.7%
90 Day-9.1%14.3%1.8%
1 Year24.5%23.1%7.5%6.8%5.7%2.5%
3 Year29.3%25.6%2.8%1.0%16.8%6.2%
5 Year86.3%77.5%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

How volatile is Agnico Eagle Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Agnico Eagle Mines undervalued compared to its fair value and its price relative to the market?

26.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEM (CA$68.7) is trading above our estimate of fair value (CA$49.5)

Significantly Below Fair Value: AEM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AEM is poor value based on its PE Ratio (26x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: AEM is poor value based on its PE Ratio (26x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: AEM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AEM is overvalued based on its PB Ratio (2.4x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Agnico Eagle Mines forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEM's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: AEM's earnings are forecast to decline over the next 3 years (-2.6% per year).

High Growth Earnings: AEM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AEM's revenue (4.5% per year) is forecast to grow slower than the Canadian market (4.7% per year).

High Growth Revenue: AEM's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEM's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Agnico Eagle Mines performed over the past 5 years?

-12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEM has a large one-off gain of $345.8M impacting its December 31 2019 financial results.

Growing Profit Margin: AEM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AEM has become profitable over the past 5 years, growing earnings by -12.4% per year.

Accelerating Growth: AEM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AEM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: AEM's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Agnico Eagle Mines's financial position?


Financial Position Analysis

Short Term Liabilities: AEM's short term assets ($1.2B) exceed its short term liabilities ($775.6M).

Long Term Liabilities: AEM's short term assets ($1.2B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: AEM's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: AEM's debt to equity ratio has reduced from 33.8% to 33.7% over the past 5 years.


Balance Sheet

Inventory Level: AEM has a high level of physical assets or inventory.

Debt Coverage by Assets: AEM's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AEM is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AEM is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Agnico Eagle Mines's current dividend yield, its reliability and sustainability?

1.52%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Agnico Eagle Mines before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: AEM's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: AEM's dividend (1.54%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: AEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: AEM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.5%), AEM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEM's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Sean Boyd (60yo)

22.1yrs

Tenure

US$9,510,276

Compensation

Mr. Sean Boyd, CPA, C.A. has been the Chief Executive Officer of Agnico Eagle Mines Limited since 1998 and served as its President from February 2012 to April 6, 2015. Mr. Boyd has been with Agnico-Eagle s ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD9.51M) is above average for companies of similar size in the Canadian market ($USD6.87M).

Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sean Boyd
Vice-Chairman & CEO22.1yrsUS$9.51m0.066% $11.0m
Ammar Al-Joundi
President4.8yrsUS$4.68m0.053% $8.9m
David Smith
Senior VP of Finance & CFO7.3yrsUS$3.03m0.030% $5.0m
Yvon Sylvestre
Senior Vice-President of Operations - Canada & Europe8yrsUS$2.88m0.0073% $1.2m
Jean Robitaille
Senior Vice President of Corporate Development0.08yrsUS$2.28m0.030% $5.0m
Brian Christie
Vice President of Investor Relations8.1yrsno datano data
Robert Laing
General Counsel & Senior VP of Legal13.2yrsUS$2.13m0.028% $4.7m
Louise Grondin
Senior Vice President of People & Culture5yrsno data0.026% $4.3m
Marc Legault
Senior Vice-President of Operations - U.S.A & Latin America8yrsno data0.027% $4.6m
Carol Plummer
Senior Vice President of Sustainability0.08yrsno data0.0038% $643.9k

7.7yrs

Average Tenure

58yo

Average Age

Experienced Management: AEM's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Boyd
Vice-Chairman & CEO22.1yrsUS$9.51m0.066% $11.0m
Jamie Sokalsky
Independent Director4.7yrsUS$280.36k0.0075% $1.3m
James Nasso
Independent Chairman of the Board0yrsUS$585.93k0.0015% $251.5k
Mel Leiderman
Independent Director17.1yrsUS$281.36k0.0049% $828.3k
Leanne Baker
Independent Director17.1yrsUS$306.91k0.0060% $999.3k
Sean Riley
Independent Director9.1yrsUS$280.36k0.0034% $563.4k
Robert Gemmell
Independent Director9.1yrsUS$305.57k0.0020% $335.3k
John Roberts
Independent Director11.7yrsUS$287.03k0.0066% $1.1m
Martine Celej
Independent Director9yrsUS$280.36k0.0049% $818.2k
Deborah McCombe
Independent Director6yrsUS$295.48k0.0034% $568.4k

9.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: AEM's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AEM insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Agnico Eagle Mines Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agnico Eagle Mines Limited
  • Ticker: AEM
  • Exchange: TSX
  • Founded: 1953
  • Industry: Gold
  • Sector: Materials
  • Market Cap: US$12.632b
  • Listing Market Cap: US$16.767b
  • Shares outstanding: 239.52m
  • Website: https://www.agnicoeagle.com

Number of Employees


Location

  • Agnico Eagle Mines Limited
  • 145 King Street East
  • Suite 400
  • Toronto
  • Ontario
  • M5C 2Y7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEMNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
AEMTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
AE9DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
AEMSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1972
0R2JLSE (London Stock Exchange)YesCommon SharesGBCADDec 1972

Biography

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. The company operates through Northern Business and Southern Business segments. It primarily produces and sells gold deposit, as well as explores for silver, zinc, and copper deposits. The company’s flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2018, its LaRonde mine had a proven and probable mineral reserve of approximately 3.1 million ounces of gold. The company is also involved in exploration activities in Europe, Latin America, and the United States. Agnico Eagle Mines Limited was founded in 1953 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:17
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.