NYSE:AEM
$53.80
(2/9 11:12AM)
+2.9%
| Open | $53.61 |
Mkt Cap | $8.2 Billion |
| High | $54.58 |
52Wk High | $74.00 |
| Low | $53.2 |
52Wk Low | $42.65 |
| Volume | 1.0 Million |
Avg Vol 10D | 3.1 Million |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
AEM Revenue
As a value investing shop, we are interested in seeing how AEM's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 17.33x and the low end of the range at 7.58x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for AEM of 18.38x is significantly above its historical average. This places AEM at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 47% merely to return AEM to its historical average.
AEM Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of AEM, Ockham views their current Cash Earnings as significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for AEM, the current level of Cash Earnings compared to its historical levels helps identify where AEM is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 67.20 and a historical low Cash Earnings per share ratio of 33.44, an investor can relate where value becomes optimal.
So what does this tell us about AEM in particular? Basically, we would value the current level of Cash Earnings per share (which is at 68.63) as significantly overvalued. Just by looking at the last closing price of AEM, which was $54.22, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded AEM with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that AEM may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.
AEM Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from AEM against the historic high and low levels over an available data range. Because AEM has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In AEM’s case, the estimated annual dividend is $0.18 producing a current dividend yield of 0.33%. The highest dividend yield from AEM in recent history was 0.86% while the lowest dividend yield was 0.07%. It is never a good sign for a company to pay significantly lower dividends, in this case 29.03% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
AEM News Mentioned on Squawk On The Street Recently
Agnico-Eagle Mines Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk On The Street.
As of this week's report, we have an Overvalued valuation on AEM because the price has gotten too high to be justified by the fundamentals. In comparison to the other stocks that we follow, Agnico-Eagle Mines Limited has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. We have recently (Sunday, November 22, 2009) downgraded this stock due to deteriorating fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AEM and think that it will generally perform in-line with the S&P 500.
“… Today on "street signs" the ceo AGNICO-EAGLE MINES. I'm excited about this one. They specialize in gold. We're going to get their view of what's going on with that record . …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
It lowered its production guidance for the year. Its cash costs came in at $449 an ounce, almost double what many were expecting. Its lappa mine, AGNICO-EAGLE's facing dilution issues. It has to remove more rock relative to the amount of gold that it's extracting. Production and higher cash although since the end of the quarter this problem has declined. At its catilla mine AGNICO-EAGLE had a massive shutdown. The mine was shut for 22 days as the company had to make repairs at its mill. Faced a seven-day shutdown at its la ronde mine because of had to push up the start of its pinos mine and now it looks like it will come at the end of the year because it's taking AGNICO-EAGLE longer than expected to set up its filter presses. And at the goldex mine a lower grade portion of the mine in the quarter which increased ka cash costs. They switch back to a higher grade block in october but you see why all this makes us uneasy. If all these problemsbest-run gold miners out there all during the
“… tracting. Production and higher cash although since the end of the quarter this problem has declined. At its catilla mine AGNICO-EAGLE had a massive shutdown. The mine was shut for 22 days as the company had to make repairs at its mill. Faced a seven-day shutdown at its la ronde mine because of had to push up the start of its pinos mine and now it looks like it will come at the end of the year because it's taking AGNICO-EAGLE longer than expected to set up its filter presses. And at the goldex mine a lower grade portion of the mine in the quarter which increased ka cash costs. They switch back to a higher grade block in october but you see why all this makes us uneasy. If all these problemsbest-run gold miners out there all during the …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
But a gold miner can be hit with any of these problems. And it's just my luck that the one gold stock i've recommended above all others, AGNICO-EAGLE MINES, aem, was actually hit with all of them in the quarter reported on wednesday. This quarter was a textbook case of how a gold miner can do badly, even when the price of the commodity's sky-high. It makes what they went through in "treasure of the sierra madre" look like a joy ride.
“… xtbook case of how a gold miner can do badly, even when the price of the commodity's sky-high. It makes what they went through in "treasure of the sierra madre" look like a joy ride. …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
Searing hot "lightning round." with AGNICO-EAGLE mine ceo sean
“… Searing hot "lightning round." with AGNICO-EAGLE mine ceo sean …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
On the "lightning round." plus, after report ugg aing a jim goes right to the source, with AGNICO-EAGLE ceo shawn boyd
“… On the "lightning round." plus, after report ugg aing a jim goes right to the source, with AGNICO-EAGLE ceo shawn boyd …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
Plus, after reporting a lackluster quarter can this gold stock still shine? Jim goes straight to the source with AGNICO-EAGLE mine's shawn boyd on the "executive all coming up on "mad money."
“… Plus, after reporting a lackluster quarter can this gold stock still shine? Jim goes straight to the source with AGNICO-EAGLE mine's shawn boyd on the "executive all coming up on "mad money." …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
Look, as I say in "get back to even," my new book, you've got all right? I don't care, but you've got to own one. You mentioned the two good ones, el dorado and AGNICO EAGLE. If I wanted to have 100 shares of AGNICO EAGLE or 200 shares of el dorado because it's cheaper, a dollar amount cheaper, I would buy 25 right now. I'd buy a quarter of my position no matter what. Then I would hope and pray gold would go below $1,000 so I could so the answer is yes, i'm a buyer ander, I hope it comes in so I can be bigger. Is it tempting? Adam and eve?
“… e it's cheaper, a dollar amount cheaper, I would buy 25 right now. I'd buy a quarter of my position no matter what. Then I would hope and pray gold would go below $1,000 so I could so the answer is yes, i'm a buyer ander, I hope it comes in so I can be bigger. Is it tempting? Adam and eve? …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
Go with an etf like gld, or could you get better appreciation with high-quality gold stocks. >> -- okay, I want to make this point. Now I feel bad for mark because he's coming in at a price where he's asking about gold. I have been recommending AGNICO-EAGLE from the 50s. It hit 70 today. I have been recommending the gld in the mid 80s it. It hit 100. I cannot recommend gold stocks. We guy gld, the pure play. And then buy AGNICO-EAGLE if you want to get a little dividend coming down the rhine. And if you're a speculate our buy eagle. El dorado gold. The lowest cost in the world. Mario in california. Mario? >> caller: boo-yah from sunny heights, fontana, california. >> our first caller from great to have you on shot. What's going on. >> caller: a position in visa. I've heard some good news on mastercard on transactions. And I was wondering houtoutlook on visa looks? >> you know, i'm choking here. Visa is doing incredibly well.
“… LE from the 50s. It hit 70 today. I have been recommending the gld in the mid 80s it. It hit 100. I cannot recommend gold stocks. We guy gld, the pure play. And then buy AGNICO-EAGLE if you want to get a little dividend coming down the rhine. And if you're a speculate our buy eagle. El dorado gold. The lowest cost in the world. Mario in california. Mario? >> caller: boo-yah from sunny heights, fontana, california. >> our first caller from great to have you on shot. What's going on. >> caller: a position in visa. I've heard some good news on mastercard on transactions. And I was wondering houtoutlook on visa looks? >> you know, i'm choking here. Visa is doing incredibly well. …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
That the company made one penny. They're going to see that there was a non-cash foreign currency translation issue. Can you break it down why you just don't see AGNICO-EAGLE at 16 cents a share? >> essentially we've got a significant component of our balance sheet. There is a deferred tax item there that gets translated every
“… nce sheet. There is a deferred tax item there that gets translated every …”
Agnico-Eagle Mines Limited (AEM) Discussed on CNBC's Mad Money
Agnico-Eagle Mines Limited is in the news. Find out how this impacts AEM trading on Ockham Research.
Increased gold production which was up 76% as the company began commercial production at two mines. AGNICO-EAGLE have two more mines scheduled to start this year and in the first quarter of 2010. With all the new production coming online, I think they equal the best way to invest in but let's hear from the straight
“… al the best way to invest in but let's hear from the straight …”