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AEM

Agnico Eagle Mines NYSE:AEM Stock Report

Last Price

US$50.07

Market Cap

US$22.8b

7D

-1.3%

1Y

-18.0%

Updated

27 Jun, 2022

Data

Company Financials +
AEM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends3/6

AEM Stock Overview

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

Agnico Eagle Mines Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Agnico Eagle Mines
Historical stock prices
Current Share PriceUS$50.07
52 Week HighUS$67.14
52 Week LowUS$45.42
Beta0.85
1 Month Change-7.38%
3 Month Change-17.44%
1 Year Change-17.97%
3 Year Change-0.30%
5 Year Change13.67%
Change since IPO506.91%

Recent News & Updates

Jun 20
Agnico Eagle Mines (NYSE:AEM) Has Some Way To Go To Become A Multi-Bagger

Agnico Eagle Mines (NYSE:AEM) Has Some Way To Go To Become A Multi-Bagger

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Jun 06

Agnico Eagle: A Smooth Transition

Revenues were $1,325.69 million, up 39.6% compared to the same quarter a year ago and up 39.7% quarter over quarter. Agnico Eagle had gold production this quarter. Production was 660,604 Au Oz from 541,663 Au ounces the preceding quarter. I recommend buying AEM at or below $51 with possible lower support at $47.25.

May 22
Estimating The Intrinsic Value Of Agnico Eagle Mines Limited (NYSE:AEM)

Estimating The Intrinsic Value Of Agnico Eagle Mines Limited (NYSE:AEM)

Today we will run through one way of estimating the intrinsic value of Agnico Eagle Mines Limited ( NYSE:AEM ) by...

May 17

Agnico Eagle Mines: Post-Earnings Swoon Is A Gift

Agnico Eagle Mines released its Q1 results last month, reporting quarterly production of ~660,600 ounces of gold, or ~806,300 ounces when adjusting for the date of the merger closing. This translated to significant growth from pre-merger levels, and the company is set up for a strong second half due to back-end weighted production. While the improved unit costs due to synergies and improved labor position are good news short term, it's the long-term potential that makes Agnico stand head and shoulders above its peers. Given the rare mix of growth and value here, with Agnico able to grow production ~30% by 2030 and trading at barely 1.0x P/NAV, I see this post-earnings swoon as a gift.

Shareholder Returns

AEMUS Metals and MiningUS Market
7D-1.3%-2.3%6.3%
1Y-18.0%-7.9%-18.8%

Return vs Industry: AEM underperformed the US Metals and Mining industry which returned -9% over the past year.

Return vs Market: AEM matched the US Market which returned -18.4% over the past year.

Price Volatility

Is AEM's price volatile compared to industry and market?
AEM volatility
AEM Average Weekly Movement6.0%
Metals and Mining Industry Average Movement9.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
19536,810Ammar Al-Joundihttps://www.agnicoeagle.com

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. It operates through Northern Business and Southern Business segments. The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits.

Agnico Eagle Mines Fundamentals Summary

How do Agnico Eagle Mines's earnings and revenue compare to its market cap?
AEM fundamental statistics
Market CapUS$22.78b
Earnings (TTM)US$507.52m
Revenue (TTM)US$4.20b

44.9x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEM income statement (TTM)
RevenueUS$4.20b
Cost of RevenueUS$1.86b
Gross ProfitUS$2.34b
Other ExpensesUS$1.83b
EarningsUS$507.52m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)1.12
Gross Margin55.74%
Net Profit Margin12.08%
Debt/Equity Ratio9.6%

How did AEM perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

80%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AEM?

Other financial metrics that can be useful for relative valuation.

AEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.6x
Enterprise Value/EBITDA11.8x
PEG Ratio-7.2x

Price to Earnings Ratio vs Peers

How does AEM's PE Ratio compare to its peers?

AEM PE Ratio vs Peers
The above table shows the PE ratio for AEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.9x
NEM Newmont
50.7x2.1%US$50.9b
RGLD Royal Gold
25.1x1.7%US$7.2b
BVN Compañía de Minas BuenaventuraA
6.9x-22.1%US$1.8b
DRD DRDGOLD
8.9x-6.3%US$555.1m
AEM Agnico Eagle Mines
44.9x-6.2%US$22.8b

Price-To-Earnings vs Peers: AEM is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the peer average (22.9x).


Price to Earnings Ratio vs Industry

How does AEM's PE Ratio compare vs other companies in the US Metals and Mining Industry?

Price-To-Earnings vs Industry: AEM is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the US Metals and Mining industry average (8.1x)


Price to Earnings Ratio vs Fair Ratio

What is AEM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.9x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: AEM is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).


Share Price vs Fair Value

What is the Fair Price of AEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AEM ($50.07) is trading above our estimate of fair value ($33.01)

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


Price to Earnings Growth Ratio

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


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Future Growth

How is Agnico Eagle Mines forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.2%

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 (-6.2% per year).

Earnings vs Market: AEM's earnings are forecast to decline over the next 3 years (-6.2% per year).

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

Revenue vs Market: AEM's revenue (1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: AEM's revenue (1% 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%).


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


31.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AEM has a large one-off loss of $260.3M impacting its March 31 2022 financial results.

Growing Profit Margin: AEM's current net profit margins (12.1%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: AEM's earnings have grown significantly by 31.2% per year over the past 5 years.

Accelerating Growth: AEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AEM had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (94.3%).


Return on Equity

High ROE: AEM's Return on Equity (3.1%) is considered low.


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Financial Health

How is Agnico Eagle Mines's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AEM's short term assets ($2.6B) exceed its short term liabilities ($985.3M).

Long Term Liabilities: AEM's short term assets ($2.6B) do not cover its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: AEM's net debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: AEM's debt to equity ratio has reduced from 25.1% to 9.6% over the past 5 years.

Debt Coverage: AEM's debt is well covered by operating cash flow (93%).

Interest Coverage: AEM's interest payments on its debt are well covered by EBIT (15.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AEM's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: AEM's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (4.23%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (79.7%), AEM's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (149.2%), AEM's dividend payments are not well covered by cash flows.


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Management

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

0.4yrs

Average management tenure


CEO

Ammar Al-Joundi (57 yo)

0.33

Tenure

US$6,675,959

Compensation

Mr. Ammar Al-Joundi, MBA is Independent Director at Canadian Imperial Bank of Commerce from April 07, 2022. He had been the President of Agnico Eagle Mines Limited since April 6, 2015 and served as its Sen...


CEO Compensation Analysis

Compensation vs Market: Ammar's total compensation ($USD6.68M) is below average for companies of similar size in the US market ($USD13.43M).

Compensation vs Earnings: Ammar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AEM's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: AEM's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 87.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Agnico Eagle Mines Limited
  • Ticker: AEM
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: US$22.783b
  • Shares outstanding: 455.01m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.