Agnico Eagle Mines Limited Common Stock (AEM)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $4.1 billion in annual free cash flow (4.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 19.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 6.8 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($99) with negative 101% margin of safety—limited downside protection

AI Analysis

Agnico Eagle Mines Limited Common Stock is a large-cap basic materials company valued at $100.1 billion. The business generates $11.9 billion in annual revenue with a 12.8% net margin and $4.1 billion in free cash flow. From a quality standpoint, Agnico shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 6.8 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 22.5x earnings, with trades far above its Graham Number ($99) with no margin of safety. Growth dynamics show revenue growing at 60.3% and profit growth of 199.1%. Our composite FairStock Score of 76/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Agnico's 60% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $4.1 billion in annual free cash flow (4.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer