NYSE:AEM

Stock Analysis Report

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Market Cap

US$15.2b

Last Updated

2021/06/24 03:58 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


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 +/- 5% a week.

Volatility Over Time: AEM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-8.8%

AEM

-4.0%

US Metals and Mining

0.5%

US Market


1 Year Return

1.4%

AEM

76.2%

US Metals and Mining

42.6%

US Market

Return vs Industry: AEM underperformed the US Metals and Mining industry which returned 76.2% over the past year.

Return vs Market: AEM underperformed the US Market which returned 42.6% over the past year.


Shareholder returns

AEMIndustryMarket
7 Day-8.8%-4.0%0.5%
30 Day-13.5%-8.4%1.9%
90 Day7.7%10.3%7.9%
1 Year3.4%1.4%80.2%76.2%44.9%42.6%
3 Year47.6%41.3%51.6%41.7%64.4%54.1%
5 Year25.3%17.9%116.0%97.3%128.3%102.7%

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?

22.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEM ($62.42) is trading above our estimate of fair value ($55.72)

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 (22.6x) compared to the US Metals and Mining industry average (16.3x).

PE vs Market: AEM is poor value based on its PE Ratio (22.6x) compared to the US market (19.2x).


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 (2.7x) compared to the US Metals and Mining industry average (2.4x).


Future Growth

How is Agnico Eagle Mines forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-1.7%

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 (-1.7% per year).

Earnings vs Market: AEM's earnings are forecast to decline over the next 3 years (-1.7% per year).

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

Revenue vs Market: AEM's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: AEM's revenue is forecast to decline over the next 3 years (-0.9% 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 (8.6%).


Past Performance

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

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEM has high quality earnings.

Growing Profit Margin: AEM's current net profit margins (19.7%) are higher than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: AEM's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: AEM's earnings growth over the past year (61.5%) exceeds its 5-year average (26% per year).

Earnings vs Industry: AEM earnings growth over the past year (61.5%) exceeded the Metals and Mining industry 21.4%.


Return on Equity

High ROE: AEM's Return on Equity (11.8%) is considered low.


Financial Health

How is Agnico Eagle Mines's financial position?


Financial Position Analysis

Short Term Liabilities: AEM's short term assets ($1.0B) exceed its short term liabilities ($455.3M).

Long Term Liabilities: AEM's short term assets ($1.0B) 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 25.3% to 27.5% over the past 5 years.

Debt Coverage: AEM's debt is well covered by operating cash flow (88.5%).

Interest Coverage: AEM's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


Dividend

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

2.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEM's dividend (2.24%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: AEM's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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 (39.8%), 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 well covered by earnings (43.2% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Sean Boyd (61 yo)

23.42yrs

Tenure

US$10,587,443

Compensation

Mr. Sean Boyd, C.A., CPA, FCPA, FCA, has been with Agnico Eagle Mines Limited since 1985 and has been its Chief Executive Officer since 1998, Vice Chairman since December 1, 2005 and has been its Director ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD10.59M) is about average for companies of similar size in the US market ($USD11.28M).

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


Leadership Team

Experienced Management: AEM's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: AEM's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AEM insiders have only sold shares 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$15.172b
  • Shares outstanding: 243.06m
  • 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


Biography

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Sweden, 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 Analysis2021/06/24 03:58
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
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.