Agnico Eagle (AEM) AI Stock Analysis

• Market Cap: $90.73B
• Dividend Yield: 1.2%
• Average Volume (3M): 834.46K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.98
• Revenue Growth: 36.19%
• EPS Growth: 392.37%
• Country: CA
• Employees: 10,125
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Gold
• EPS (TTM): 2.68
• Shares Outstanding: 502,341,980
• 10 Day Avg. Volume: 730,263
• 30 Day Avg. Volume: 834,464
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 11.92
• Enterprise Value/Gross Profit: 24.88
• Enterprise Value/Ebitda: 20.61
• 1Y Price Target: $207.99
• Price Target Upside: 9.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 83 Outperform
• Price Target: C$200.00 ▲(5.49% Upside)

Agnico Eagle's overall stock score reflects strong financial performance, positive technical indicators, and robust earnings call results. The company's ability to maintain high profitability and efficient cash management, coupled with strategic growth initiatives, positions it well for future success. While the valuation is on the higher side, the company's operational strengths and shareholder-focused strategies justify the current pricing.

Positive Factors

Financial Performance

Agnico Eagle Mines reported a solid earnings beat on lower unit costs, with higher gold production.

Operational Efficiency

Macassa productivity continues to benefit from Shaft 4, additional investments in underground infrastructure, and an increased push on mill throughput.

Project Development

Upper Beaver is progressing well, ahead of schedule and benefiting from synergies with Macassa and AEM's in-house approach to construction.

Negative Factors

Growth Challenges

Agnico is a quality gold producer with strong margins but has been lacking in growth vs. peers due to the long-dated nature of the growth.

Growth Visibility

Growth will begin to come into sight in the guidance picture, demonstrating a path to over 4Mozpa by the early 2030s.

Agnico Eagle Business Overview & Revenue Model

Company Description

Agnico Eagle Mines Limited (AEM) is a leading Canadian gold mining company with a focus on the exploration, development, and production of gold in North America and Europe. Founded in 1953 and headquartered in Toronto, Ontario, Agnico Eagle operates several mines in Canada, Finland, and Sweden, with a commitment to sustainable mining practices. The company is recognized for its strong operational track record and its emphasis on safety, environmental stewardship, and community engagement. Agnico Eagle's core products include gold and, to a lesser extent, silver, which are produced through both underground and open-pit mining operations.

How the Company Makes Money

Agnico Eagle generates revenue primarily through the sale of gold and silver produced at its mining operations. The company employs a revenue model based on the extraction and processing of precious metals, which are then sold on the global market. Key revenue streams include the sale of refined gold and silver, with prices influenced by market demand and commodity prices. Additionally, Agnico Eagle may engage in forward sales and hedging strategies to manage price fluctuations. The company benefits from strategic partnerships in the mining sector and has a strong focus on exploration to expand its resource base, which can lead to increased production and future revenue growth. Factors contributing to Agnico Eagle's earnings include operational efficiency, cost management, and the ability to navigate regulatory environments effectively.

Agnico Eagle Financial Statement Overview

Summary

Agnico Eagle's financial health is strong, with high profitability and efficient cash flow management. The company maintains solid margins and asset management practices, although recent revenue challenges suggest a need for strategic focus on growth opportunities.

Income Statement

Agnico Eagle demonstrates strong profitability with a consistent increase in gross and net profit margins. The TTM gross profit margin is 47.9% and the net profit margin is 26.5%, reflecting efficient cost management. EBIT and EBITDA margins are robust at 42.5% and 57.8% respectively. However, the recent revenue decline from the previous annual period warrants attention, indicating potential market challenges or operational adjustments.

Balance Sheet

The balance sheet presents a stable financial structure with a low debt-to-equity ratio of 0.06, showcasing a conservative leverage approach. The equity ratio is healthy at 70.7%, signifying strong asset backing by shareholders' equity. Return on Equity stands at 8.3% annually, showing moderate profitability relative to equity. These indicators highlight financial stability, though the moderate ROE suggests room for enhanced shareholder returns.

Cash Flow

Cash flow metrics are strong, with a significant operating cash flow to net income ratio of 1.75, indicating excellent cash earnings quality. Free cash flow generation remains robust, despite a decline in growth rate, reflecting effective capital expenditure management. The cash flow profile highlights the company's ability to generate and manage cash efficiently, providing a solid foundation for future investment and debt service.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.77B	8.29B	6.63B	5.74B	3.82B	3.14B
Gross Profit	3.24B	3.69B	3.72B	2.00B	1.33B	1.08B
EBITDA	3.91B	4.42B	4.05B	2.27B	1.75B	1.57B
Net Income	1.80B	1.90B	1.94B	670.25M	561.95M	511.61M
Balance Sheet
Total Assets	30.59B	29.99B	28.68B	23.49B	10.19B	9.61B
Cash, Cash Equivalents and Short-Term Investments	1.15B	933.74M	348.85M	658.63M	191.07M	406.46M
Total Debt	1.28B	1.28B	2.00B	1.49B	1.70B	1.69B
Total Liabilities	8.95B	9.15B	9.26B	7.25B	4.21B	3.93B
Stockholders Equity	21.64B	20.83B	19.42B	16.24B	5.98B	5.68B
Cash Flow
Free Cash Flow	1.71B	2.13B	953.66M	558.40M	398.31M	432.71M
Operating Cash Flow	3.14B	3.96B	2.65B	2.10B	1.32B	1.19B
Investing Cash Flow	-1.71B	-2.01B	-2.81B	-710.46M	-1.23B	-808.81M
Financing Cash Flow	-863.05M	-1.36B	-163.96M	-914.85M	-297.24M	-302.82M

Agnico Eagle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AEM, the sentiment is Positive. The current price of 189.59 is above the 20-day moving average (MA) of 180.81, above the 50-day MA of 171.42, and above the 200-day MA of 146.26, indicating a bullish trend. The MACD of 4.78 indicates Negative momentum. The RSI at 67.24 is Neutral, neither overbought nor oversold. The STOCH value of 53.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AEM.

Agnico Eagle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEM	83 Outperform	$90.73B	21.93	13.92%	1.20%	36.19%	392.37%
ABX	78 Outperform	C$57.19B	14.97	11.41%	2.07%	20.13%	90.22%
WPM	76 Outperform	$57.30B	51.93	10.60%	0.70%	51.33%	42.31%
K	76 Outperform	$31.58B	14.92	22.05%	0.63%	38.34%	218.80%
FNV	74 Outperform	$46.34B	42.24	12.61%	0.86%	21.83%	―
AGI	72 Outperform	$15.01B	31.20	10.18%	0.38%	38.30%	68.57%
Sector *	70 Outperform	¥182.19B	11.36	5.69%	3.07%	2.62%	-12.22%