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AEM

Agnico Eagle MinesNYSE:AEM Stock Report

Last Price

US$48.54

Market Cap

US$11.9b

7D

-10.6%

1Y

-28.6%

Updated

26 Jan, 2022

Data

Company Financials +
AEM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends4/6

AEM Stock Overview

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

Agnico Eagle Mines Competitors

Newmont

NYSE:NEM

US$50.6b

Royal Gold

NasdaqGS:RGLD

US$6.8b

Coeur Mining

NYSE:CDE

US$1.3b

Hycroft Mining Holding

NasdaqCM:HYMC

US$27.1m

Price History & Performance

Summary of all time highs, changes and price drops for Agnico Eagle Mines
Historical stock prices
Current Share PriceUS$48.54
52 Week HighUS$74.50
52 Week LowUS$47.07
Beta0.80
1 Month Change-5.64%
3 Month Change-12.37%
1 Year Change-28.59%
3 Year Change13.17%
5 Year Change2.41%
Change since IPO488.36%

Recent News & Updates

Dec 21
Agnico Eagle Mines (NYSE:AEM) Seems To Use Debt Quite Sensibly

Agnico Eagle Mines (NYSE:AEM) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Dec 10

Agnico Eagle Is A Must-Buy Gold Stock

Since the AEM/KL merger news, the two stocks have lagged well behind the sector, and this is a continuation of the underperformance of both stocks over the last few years. AEM and KL were avoids in 2019-2020 due to lofty market caps, but relative values have declined dramatically since then. As a combined entity, while also factoring in other bullish fundamentals/catalysts and the recent continued weakness in both stocks, the new AEM is a must-buy. With this team and these assets, I'm confident that outperformance will return.

Dec 08
Returns On Capital Are Showing Encouraging Signs At Agnico Eagle Mines (NYSE:AEM)

Returns On Capital Are Showing Encouraging Signs At Agnico Eagle Mines (NYSE:AEM)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

AEMUS Metals and MiningUS Market
7D-10.6%-6.4%-5.1%
1Y-28.6%16.0%3.3%

Return vs Industry: AEM underperformed the US Metals and Mining industry which returned 16% over the past year.

Return vs Market: AEM underperformed the US Market which returned 3.3% over the past year.

Price Volatility

Is AEM's price volatile compared to industry and market?
AEM volatility
AEM Average Weekly Movement5.0%
Metals and Mining Industry Average Movement9.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
19536,210Sean Boydhttps://www.agnicoeagle.com

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 segments. It primarily produces and sells gold deposit, 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$11.88b
Earnings (TTM)US$645.41m
Revenue (TTM)US$3.80b

18.4x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEM income statement (TTM)
RevenueUS$3.80b
Cost of RevenueUS$1.64b
Gross ProfitUS$2.16b
ExpensesUS$1.51b
EarningsUS$645.41m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.64
Gross Margin56.80%
Net Profit Margin16.97%
Debt/Equity Ratio26.6%

How did AEM perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

53%

Payout Ratio

Valuation

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

18.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEM ($48.54) is trading above our estimate of fair value ($38.51)

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 (18.4x) compared to the US Metals and Mining industry average (8.2x).

PE vs Market: AEM is poor value based on its PE Ratio (18.4x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: AEM is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: AEM's PB Ratio (2x) is in line with the US Metals and Mining industry average.


Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEM's forecast earnings growth (4% per year) is above the savings rate (2%).

Earnings vs Market: AEM's earnings (4% per year) are forecast to grow slower than the US market (12.9% per year).

High Growth Earnings: AEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: AEM's revenue (5.5% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: AEM's revenue (5.5% 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 (13.5%).


Past Performance

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

30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEM has high quality earnings.

Growing Profit Margin: AEM's current net profit margins (17%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: AEM's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: AEM's earnings growth over the past year (1.1%) is below its 5-year average (30.8% per year).

Earnings vs Industry: AEM earnings growth over the past year (1.1%) underperformed the Metals and Mining industry 125.5%.


Return on Equity

High ROE: AEM's Return on Equity (10.9%) is considered low.


Financial Health

How is Agnico Eagle Mines's financial position?


Financial Position Analysis

Short Term Liabilities: AEM's short term assets ($1.4B) exceed its short term liabilities ($883.9M).

Long Term Liabilities: AEM's short term assets ($1.4B) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: AEM's net debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: AEM's debt to equity ratio has reduced from 26.9% to 26.6% 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 (14.6x coverage).


Balance Sheet


Dividend

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

2.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEM's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: AEM's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (3.56%).


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 reasonable payout ratio (52.7%), AEM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEM's dividends in 3 years are forecast to be well covered by earnings (40.1% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Sean Boyd (62 yo)

24yrs

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 ($USD10.59M) is about average for companies of similar size in the US market ($USD11.47M).

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 (6.8 years average tenure).


Board Members

Experienced Board: AEM's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$11.881b
  • Shares outstanding: 244.76m
  • 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 Analysis2022/01/26 23:56
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
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.