One-glance verdict
Undervalued
$293.30 our estimate vs market $165.38
Wall Street consensus: $211.49 (-27.9% lower than our fair-value estimate)
44% below our estimate, below the bear case
Fundamentals snapshot
Agnico Eagle Mines Limited
AEM · NYQ · Basic Materials · Gold
Current price
$165.38
52-week range
$134.38 - $255.24
Market cap
$83.61B
Balance sheet
Healthy
189.22x Strong cushion
Net cash $3.30B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 38.7% last year.
- Reward Returns 23.2% on equity, ahead of 16% of its peers.
- Risk Forward P/E (14.1x) is higher than trailing (13.5x) - earnings are expected to drop.
- Risk Insider ownership is only 0.1% (peer median: 0.2%).
What this company does
Agnico Eagle Mines Limited
Agnico Eagle Mines Limited mines for gold and other precious metals. The money they make primarily comes from selling the gold they dig out of the ground, which is important because it's how they pay their bills and hopefully make a profit.
How the company got here
Agnico Eagle Mines Limited has a long history, tracing its roots back to 1953 when several struggling mining companies merged to form Cobalt Consolidated Mining. This company was later renamed Agnico Mines in 1957. The name "Agnico" itself is a clever combination of the chemical symbols for silver (Ag), nickel (Ni), and cobalt (Co), reflecting its early focus. A significant turning point came in 1972 when Agnico Mines merged with Eagle Gold Mines Limited, creating Agnico Eagle Mines Limited and marking a major expansion into gold mining. The company has since grown through strategic acquisitions and development, including major mergers with Kirkland Lake Gold in 2022 and the acquisition of Yamana Gold's Canadian assets in 2023, solidifying its position as a leading gold producer.
What it actually does
Agnico Eagle Mines Limited is primarily a gold mining company. This means it explores for, develops, and extracts gold from the earth. The process involves identifying gold deposits, digging them up using methods like open-pit or underground mining, and then processing the ore to extract the gold. While gold is its main product, Agnico Eagle also produces and sells by-products like silver, zinc, and copper from some of its mines. These metals are then sold to various industries, including jewelry, electronics, and for investment purposes.
Northern Business
The Northern Business segment represents the core of Agnico Eagle's operations, focusing on its most significant mines located in politically stable regions with strong geological potential. This segment includes major assets like the LaRonde Complex and Canadian Malartic in Quebec, Detour Lake and Macassa in Ontario, and Meliadine and Meadowbank in Nunavut, Canada. It also encompasses the Kittilä mine in Finland. These operations are characterized by high-grade ore bodies and long-life potential, contributing the majority of the company's gold production and reserves.
Southern Business
The Southern Business segment comprises Agnico Eagle's mining operations in Mexico. Key assets in this segment include the Pinos Altos mine and Creston Mascota mine. These operations contribute to the company's overall gold production and also yield by-products such as silver and zinc. The focus here is on leveraging the geological potential of these regions while maintaining operational efficiency and responsible mining practices.
Exploration
The Exploration segment is crucial for Agnico Eagle's long-term growth and sustainability. It involves actively searching for new gold deposits and evaluating potential development projects across various regions, including Canada, the United States, Europe, and Latin America. This segment is dedicated to replenishing the company's mineral reserves and mineral resources through diligent geological surveys, drilling, and analysis, ensuring a pipeline of future mining opportunities.
What management is betting on now
Agnico Eagle's management is focused on building a high-quality, low-risk, and sustainable business that generates superior long-term returns for shareholders. Their strategy centers on owning long-life assets in politically stable jurisdictions, such as Canada, Finland, Australia, and Mexico. Key priorities include maximizing value from existing mines through operational improvements and exploration, disciplined project development, and maintaining a conservative financial position. They are also committed to responsible mining practices and environmental sustainability, aiming for net-zero emissions by 2050.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
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Net income
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Diluted EPS
-2.35
Operating cash flow
$438.30M
Free cash flow
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Sources
Revenue
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Net income
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Diluted EPS
1.81
Operating cash flow
$696.01M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $293.30 vs current price $165.38
Wall Street consensus is the average analyst price target: $211.49 (-27.9% lower than our fair-value estimate).
Our most-likely fair value is $293.30 a share — about 77.4% above today's price of $165.38, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $3.3B - more cash than debt. Interest coverage 189.2x.
Net debt
$-3.30B
Interest coverage
189.22x
Agnico Eagle Mines Limited's profit covers its interest bill about 189.2 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
AEM
BASELINE
Agnico Eagle Mines Limited
Total debt $328.08M Interest coverage 189.22x This is the baseline the peer rows are being compared against.
Total debt $5.58B Interest coverage 48.14x -75% vs AEM Carries about 3.9x less debt cushion than AEM.
Total debt $901.68M Interest coverage 2.34x -99% vs AEM Carries about 81.0x less debt cushion than AEM.
Total debt $754.20M Interest coverage 39.46x -79% vs AEM Carries about 4.8x less debt cushion than AEM.
Total debt $2.63B Interest coverage 36.50x -81% vs AEM Carries about 5.2x less debt cushion than AEM.
Total debt $1.79B Interest coverage 19.86x -90% vs AEM Carries about 9.5x less debt cushion than AEM.
What you should know
The case for and against AEM
3 Rewards
2 Risks
Rewards
-
Revenue grew 38.7% last year.
-
Returns 23.2% on equity, ahead of 16% of its peers.
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Free cash flow was positive in 3/10 years.
Risks
-
Forward P/E (14.1x) is higher than trailing (13.5x) - earnings are expected to drop.
-
Insider ownership is only 0.1% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.48x
Forward P/E
14.14x
P/B
2.82x
P/S
5.56x
EV/EBITDA
7.62x
PEG ratio
28.15x
Profitability
How much profit each dollar creates
Gross margin
74.5%
Operating margin
55.5%
Net margin
41.0%
ROE
23.2%
ROA
15.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.75x
Quick ratio
1.73x
Total debt
$328.08M
Total cash
$3.63B
Growth
How the business has been compounding
Revenue TTM
$640.08M
Revenue 5Y CAGR
38.7%
EPS TTM
12.27
EPS 5Y CAGR
79.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.28B
Free CF TTM
$4.26B
FCF margin
665.9%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
14.3%
Last ex-div date
2026-12-01