Reviewing Agnico Eagle Mines (AEM) & Its Peers

Agnico Eagle Mines (NYSE: AEM) is one of 61 public companies in the “Gold Mining” industry, but how does it contrast to its peers? We will compare Agnico Eagle Mines to related businesses based on the strength of its analyst recommendations, dividends, profitability, institutional ownership, risk, valuation and earnings.

Valuation and Earnings

This table compares Agnico Eagle Mines and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Agnico Eagle Mines $2.14 billion $158.82 million 37.36
Agnico Eagle Mines Competitors $2.41 billion -$32.21 million 183.21

Agnico Eagle Mines’ peers have higher revenue, but lower earnings than Agnico Eagle Mines. Agnico Eagle Mines is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Agnico Eagle Mines has a beta of -0.73, suggesting that its stock price is 173% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines’ peers have a beta of -0.11, suggesting that their average stock price is 111% less volatile than the S&P 500.

Profitability

This table compares Agnico Eagle Mines and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agnico Eagle Mines 12.47% 5.61% 3.55%
Agnico Eagle Mines Competitors -2,998.75% -8.66% -3.99%

Dividends

Agnico Eagle Mines pays an annual dividend of $0.44 per share and has a dividend yield of 1.0%. Agnico Eagle Mines pays out 37.6% of its earnings in the form of a dividend. As a group, “Gold Mining” companies pay a dividend yield of 1.0% and pay out 68.7% of their earnings in the form of a dividend. Agnico Eagle Mines has increased its dividend for 5 consecutive years. Agnico Eagle Mines is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for Agnico Eagle Mines and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agnico Eagle Mines 0 3 5 0 2.63
Agnico Eagle Mines Competitors 471 1832 2141 48 2.39

Agnico Eagle Mines presently has a consensus target price of $54.93, indicating a potential upside of 25.67%. As a group, “Gold Mining” companies have a potential upside of 49.06%. Given Agnico Eagle Mines’ peers higher probable upside, analysts plainly believe Agnico Eagle Mines has less favorable growth aspects than its peers.

Insider & Institutional Ownership

58.3% of Agnico Eagle Mines shares are owned by institutional investors. Comparatively, 44.2% of shares of all “Gold Mining” companies are owned by institutional investors. 0.5% of Agnico Eagle Mines shares are owned by insiders. Comparatively, 7.9% of shares of all “Gold Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Agnico Eagle Mines beats its peers on 9 of the 15 factors compared.

About Agnico Eagle Mines

Agnico Eagle Mines Ltd is a Canada-based gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut, as well as exploration activities in Canada, Europe, Latin America and the United States. It operates through the business units: Northern Business, which consists of its operations in Canada and Finland, such as the LaRonde mine, the Lapa mine, the Goldex mine, the Meadowbank mine, the Meliadine project and the Malartic Mine in Canada, as well as the Kittila mine in Finland; Southern Business, which consists of its operations in Mexico, such as the Pinos Altos mine that includes the Creston Mascota deposit and the La India mine owned by its indirect subsidiary, as well as Exploration Group, which focuses on the identification of new mineral reserves and mineral resources, and new development opportunities in gold producing regions. Its exploration activities are concentrated in Canada, Europe, Latin America and the United States.

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