Fundamental analysis: Agnico Eagle Mines Limited (AEM)

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Average) and growth (Good), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

Business has been growing at a good pace. It's been encouraging in relation to peer companies.
Agnico Eagle Mines Limited business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 7.7

AEM profit margins -on goods and services sold- are usually sufficient. They stand better than most rival companies.
Business profit on sales tends to be excellent. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain rather normal in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly worse than similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain similar to rivals.
Total net profit tends to be good when confronted to sales. Company stands similar to comparable firms.

Growth score: 3.6

Agnico Eagle Mines Limited profit -on goods and services sold- has been growing at a very low pace. It's been in a weak position compared to competitors.
In recent years, earnings -on operations- have been growing at a good step, which has been slightly worse than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares top tier when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 6.7

AEM had to pay too much income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
Research and development expenses consume a very little portion of revenues. It's last-in-rank when measured against competitors.
The company shows very good business growth in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 6.5

Agnico Eagle Mines Limited usually gets good returns on the resources it controls. It proves similar to peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
There's usually some profitability -in relation to owned resources-. It ranks similar to competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 5.4

AEM usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands similar to rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is below average when measured against industry peers.
In the past twelve months it paid somewhat low dividends, considering the current stock price. It came slightly worse than competitors.
Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved close to average when compared to similar firms.
The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks somewhat worse than comparable companies.
The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.6

Agnico Eagle Mines Limited intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be in a weak position compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly worse than rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on less than a month credit. It still ranks weak when measured against peers.
Normally has approximately five months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
On average, it takes higher than six months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers approximately three months after the purchase. It ranks more than average in relation to industry peers.
The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a very weak position compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands mediocre against rival firms.
Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in a weak position compared to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 4.8

Agnico Eagle Mines Limited looks heavily expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
In the past twelve months, the company generated some free funds in relation to the stock price, which stands well ranked against similar companies.
In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still encouraging in relation to industry firms.
In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks substantially worse when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a weak position compared to rival firms.
The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
In the past twelve months, the operating business lost a little money. It happens to be similar to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.8

Company at a glance: Agnico Eagle Mines Limited (AEM)

Sector, industry: Basic Materials, Gold

Market Cap: 25.22 billions

Revenues TTM: 4.22 billions

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.