Agnico Eagle Mines Limited
Agnico Eagle Mines Limited Fundamental Analysis
Agnico Eagle Mines Limited (AEM) shows strong financial fundamentals with a PE ratio of 26.99, profit margin of 37.48%, and ROE of 19.25%. The company generates $11.9B in annual revenue with strong year-over-year growth of 22.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 97.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze AEM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAEM demonstrates superior asset utilization.
Valuation Score
ModerateAEM shows balanced valuation metrics.
Growth Score
ModerateAEM shows steady but slowing expansion.
Financial Health Score
ExcellentAEM maintains a strong and stable balance sheet.
Profitability Score
ExcellentAEM achieves industry-leading margins.
Key Financial Metrics
Is AEM Expensive or Cheap?
P/E Ratio
AEM trades at 26.99 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AEM's PEG of 0.92 indicates potential undervaluation.
Price to Book
The market values Agnico Eagle Mines Limited at 4.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.68 times EBITDA. This signals the market has high growth expectations.
How Well Does AEM Make Money?
Net Profit Margin
For every $100 in sales, Agnico Eagle Mines Limited keeps $37.48 as profit after all expenses.
Operating Margin
Core operations generate 52.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.25 in profit for every $100 of shareholder equity.
ROA
Agnico Eagle Mines Limited generates $12.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Agnico Eagle Mines Limited generates strong operating cash flow of $6.85B, reflecting robust business health.
Free Cash Flow
Agnico Eagle Mines Limited generates strong free cash flow of $4.41B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.80 in free cash annually.
FCF Yield
AEM converts 3.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How AEM Stacks Against Its Sector Peers
| Metric | AEM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.99 | 27.01 | Neutral |
| ROE | 19.25% | 949.00% | Weak |
| Net Margin | 37.48% | -16219.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.02 | 4.42 | Strong Liquidity |
| ROA | 12.90% | -6413.00% (disorted) | Strong |
AEM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Agnico Eagle Mines Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.83%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
85.56%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
112.92%
Industry Style: Cyclical, Commodity, Value
High Growth