Agnico Eagle (AEM) AI Stock Analysis

• Market Cap: C$137.43B
• Dividend Yield: 0.91%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.37
• Revenue Growth: 38.72%
• EPS Growth: 250.70%
• Country: CA
• Employees: 10,125
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 3.02
• Shares Outstanding: 502,046,570
• 10 Day Avg. Volume: 968,384
• 30 Day Avg. Volume: 1,030,025
• PEG Ratio: -4.55
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 4.71
• P/FCF Ratio: 18.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$268.02
• Price Target Upside: -2.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: C$315.00 ▲(15.07% Upside)

Agnico Eagle's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust operational efficiency and strategic project development contribute to a positive outlook. While technical indicators show bullish momentum, the high P/E ratio suggests the stock may be overvalued, which could limit immediate upside potential.

Positive Factors

Strong free cash flow generation

Sustained, high free cash flow growth and efficient cash conversion provide durable funding for capital projects, dividends and buybacks without heavy reliance on debt. This strengthens strategic optionality, supports reinvestment in exploration and de-risks funding for multi-year development plans.

Very low leverage and strong equity base

A minimal debt load and high equity ratio offer resilience across commodity cycles, lowering financial risk and enabling opportunistic M&A or project funding. This balance sheet strength preserves credit capacity and reduces refinancing risk, supporting long-term operational continuity.

Robust project pipeline and exploration success

Progressing multiple development projects and strong drill results expand future production potential (management cites 1.3–1.5M oz upside), extending reserve life and diversifying mine supply. This organic growth pipeline strengthens medium-term production visibility and long-run cash generation.

Negative Factors

Sustainability of high growth

Record revenue and margins have been driven by exceptional conditions; sustaining elevated growth and margins is uncertain given mining project lead times and commodity cyclicality. A reversion toward mean production or prices would materially affect earnings and cash flow profiles over months to years.

Higher cash costs from royalties

Royalties that scale with metal prices introduce a structural uplift to unit costs as prices rise, compressing long-run margins and raising all-in sustaining costs. This dynamic can erode incremental cash flow from price spikes and reduce margin resilience if royalty regimes persist or expand.

Skilled labor shortage risk

Persistent labor shortages can inflate operating costs, slow project schedules, and hamper productivity across multi-jurisdiction operations. For a growth-focused miner, recruiting and training timelines add execution risk to development plans and can reduce margin sustainability over the medium term.

Agnico Eagle Business Overview & Revenue Model

Company Description

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. Its flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2021, the company's LaRonde mine had proven and probable mineral reserves of approximately 3.0 million ounces of gold. It is also involved in exploration activities in Europe, Latin America, and the United States. The company was incorporated in 1953 and is headquartered in Toronto, Canada.

How the Company Makes Money

Agnico Eagle generates revenue primarily through the extraction and sale of gold and other precious metals. The company operates multiple mining sites and generates income by selling the gold produced at these facilities to global markets. Key revenue streams include gold sales, which are influenced by market prices, production volumes, and operational efficiency. Additionally, Agnico Eagle may benefit from by-product sales, such as silver, which can provide supplemental income. The company also engages in strategic partnerships and joint ventures that can enhance its resource base, reduce operational costs, and diversify its portfolio, contributing positively to its earnings. Moreover, Agnico Eagle's focus on sustainable practices and community engagement can lead to long-term operational stability and profitability.

Agnico Eagle Financial Statement Overview

Summary

Agnico Eagle's financial performance is strong, with high profitability, stable leverage, and efficient cash flow management. The company maintains solid margins and asset management practices, though 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	9.68B	8.29B	6.63B	5.74B	3.82B	3.14B
Gross Profit	5.39B	3.69B	3.72B	2.00B	1.33B	1.08B
EBITDA	6.08B	4.42B	4.05B	2.27B	1.75B	1.57B
Net Income	2.96B	1.90B	1.94B	670.25M	561.95M	511.61M
Balance Sheet
Total Assets	31.69B	29.99B	28.68B	23.49B	10.19B	9.61B
Cash, Cash Equivalents and Short-Term Investments	1.57B	933.74M	348.85M	658.63M	191.07M	406.46M
Total Debt	733.69M	1.28B	2.00B	1.49B	1.70B	1.69B
Total Liabilities	9.15B	9.15B	9.26B	7.25B	4.21B	3.93B
Stockholders Equity	22.54B	20.83B	19.42B	16.24B	5.98B	5.68B
Cash Flow
Free Cash Flow	3.07B	2.13B	953.66M	558.40M	398.31M	432.71M
Operating Cash Flow	5.11B	3.96B	2.65B	2.10B	1.32B	1.19B
Investing Cash Flow	-2.43B	-2.01B	-2.81B	-710.46M	-1.23B	-808.81M
Financing Cash Flow	-2.04B	-1.36B	-163.96M	-914.85M	-297.24M	-302.82M

Agnico Eagle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 273.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 273.74 is above the 20-day moving average (MA) of 246.70, above the 50-day MA of 238.40, and above the 200-day MA of 196.56, indicating a bullish trend. The MACD of 9.46 indicates Negative momentum. The RSI at 72.18 is Negative, neither overbought nor oversold. The STOCH value of 90.32 is Negative, 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
K	81 Outperform	C$55.79B	23.05	24.09%	0.43%	36.41%	144.79%
AEM	80 Outperform	C$137.43B	28.56	15.67%	0.91%	38.72%	250.70%
ABX	80 Outperform	C$117.01B	23.92	14.63%	1.17%	21.76%	129.56%
WPM	79 Outperform	C$83.96B	60.04	13.05%	0.55%	54.48%	68.44%
AGI	77 Outperform	C$25.06B	33.66	14.27%	0.25%	34.64%	115.75%
FNV	72 Outperform	C$63.55B	49.45	14.17%	0.72%	44.76%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%