NYSE:AEM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with adequate balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AEM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

AEM

1.2%

US Metals and Mining

-4.0%

US Market


1 Year Return

15.1%

AEM

90.9%

US Metals and Mining

46.6%

US Market

Return vs Industry: AEM underperformed the US Metals and Mining industry which returned 90.9% over the past year.

Return vs Market: AEM underperformed the US Market which returned 46.6% over the past year.


Shareholder returns

AEMIndustryMarket
7 Day2.5%1.2%-4.0%
30 Day-20.1%4.8%-4.1%
90 Day-22.3%13.1%3.3%
1 Year17.1%15.1%95.4%90.9%49.8%46.6%
3 Year49.7%43.8%32.7%23.6%47.8%38.4%
5 Year71.5%61.8%142.1%119.8%116.6%92.6%

Long-Term 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?

26.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEM ($56.74) is trading above our estimate of fair value ($31.78)

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 (26.8x) compared to the US Metals and Mining industry average (17.7x).

PE vs Market: AEM is poor value based on its PE Ratio (26.8x) compared to the US market (21.8x).


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 US Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Agnico Eagle Mines forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-4.3%

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 (-4.3% per year).

Earnings vs Market: AEM's earnings are forecast to decline over the next 3 years (-4.3% per year).

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

Revenue vs Market: AEM's revenue (2.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AEM's revenue (2.3% 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 (5.3%).


Next Steps

Past Performance

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

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEM has high quality earnings.

Growing Profit Margin: AEM's current net profit margins (16.3%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: AEM's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: AEM's earnings growth over the past year (8.3%) is below its 5-year average (21.3% per year).

Earnings vs Industry: AEM earnings growth over the past year (8.3%) exceeded the Metals and Mining industry -3.1%.


Return on Equity

High ROE: AEM's Return on Equity (9%) is considered low.


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 ($515.7M).

Long Term Liabilities: AEM's short term assets ($1.2B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: AEM's debt to equity ratio (27.5%) is considered satisfactory.

Reducing Debt: AEM's debt to equity ratio has increased from 27.3% to 27.5% over the past 5 years.

Debt Coverage: AEM's debt is well covered by operating cash flow (76.2%).

Interest Coverage: AEM's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEM's dividend (2.47%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: AEM's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (44.8%), 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 covered by earnings (52.8% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Sean Boyd (61 yo)

23.17yrs

Tenure

US$9,270,619

Compensation

Mr. Sean Boyd, C.A., CPA, FCPA, FCA. 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 Ag...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD9.27M) is about average for companies of similar size in the US market ($USD10.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Boyd
Vice-Chairman & CEO23.17yrsUS$9.27m0.051%
$ 7.1m
Ammar Al-Joundi
President5.92yrsUS$4.35m0.049%
$ 6.8m
David Smith
Senior VP of Finance & CFO8.42yrsUS$2.97m0.015%
$ 2.1m
Jean Robitaille
Senior Vice President of Corporate Development1.17yrsUS$2.22m0.030%
$ 4.2m
Dominique Girard
Senior Vice President of Operations – Canada & Europe0.67yrno data0.0033%
$ 459.9k
Brian Christie
Vice President of Investor Relations9.17yrsno datano data
Christopher Vollmershausen
Senior VP of Legal1.17yrsno data0.0015%
$ 212.6k
Carol-Ann Plummer-Theriault
Senior Vice President Sustainabilityno datano data0.010%
$ 1.4m
Marc Legault
Senior Vice-President of Operations - U.S.A & Latin America9.08yrsno data0.032%
$ 4.4m
Guy Gosselin
Senior Vice President of Exploration1.58yrsno data0.0080%
$ 1.1m
Mathew Cook
VP of Finance & Corporate Controller9.08yrsno datano data
Ben Lam
Vice President of Treasury0.92yrno datano data

5.9yrs

Average Tenure

57yo

Average Age

Experienced Management: AEM's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Boyd
Vice-Chairman & CEO23.17yrsUS$9.27m0.051%
$ 7.1m
Jamie Sokalsky
Independent Director5.75yrsUS$265.87k0.0081%
$ 1.1m
James Nasso
Independent Chairman of the Boardno dataUS$549.98k0.0029%
$ 409.9k
Mel Leiderman
Independent Director18.17yrsUS$267.27k0.0055%
$ 768.4k
Sean Riley
Independent Director10.17yrsUS$265.87k0.0036%
$ 505.8k
Robert Gemmell
Independent Director10.17yrsUS$290.90k0.0012%
$ 170.9k
John Roberts
Independent Director12.75yrsUS$280.73k0.0064%
$ 883.7k
Martine Celej
Independent Director10.08yrsUS$265.87k0.0055%
$ 769.8k
Deborah McCombe
Independent Director7.08yrsUS$280.89k0.0041%
$ 566.9k

10.2yrs

Average Tenure

66yo

Average Age

Experienced Board: AEM's board of directors are seasoned and experienced ( 10.2 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: NYSE
  • Founded: 1953
  • Industry: Gold
  • Sector: Materials
  • Market Cap: US$13.895b
  • Shares outstanding: 243.05m
  • 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
AEM NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
AEMBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/3 COM NPVARARSSep 2014

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 23:30
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.