Agnico Eagle Mines shares fell by -1.6% during the day's morning session, and are now trading at a price of $152.39. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Agnico Eagle Mines Shares Are Inexpensive:
Agnico Eagle Mines Limited, a gold mining company, engages in the exploration, development, and production of precious metals. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 20.25 and an average price to book (P/B) ratio of 2.31. In contrast, Agnico Eagle Mines has a trailing 12 month P/E ratio of 14.3 and a P/B ratio of 2.9.
Agnico Eagle Mines's PEG ratio is 28.15, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Exceptional EPS Growth and an Excellent Current Ratio:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,138 | $3,870 | $5,741 | $6,627 | $8,286 | $11,908 |
| Net Margins | 20% | 14% | 12% | 29% | 23% | 43% |
| Net Income (M) | $643 | $529 | $670 | $1,937 | $1,896 | $5,139 |
| Earnings Per Share | $2.1 | $2.3 | $1.53 | $3.95 | $3.78 | $8.86 |
| EPS Growth | n/a | 9.52% | -33.48% | 158.17% | -4.3% | 134.39% |
| Avg. Price | $60.26 | $56.95 | $52.26 | $54.85 | $78.18 | $163.66 |
| P/E Ratio | 28.42 | 24.65 | 34.16 | 13.82 | 20.63 | 18.41 |
| Free Cash Flow (M) | $1,192 | $1,345 | $2,097 | $2,602 | $3,961 | $6,817 |
| Total Debt (M) | $1,565 | $1,340 | $1,242 | $1,743 | $1,053 | $196 |
| Current Ratio | 2.42 | 1.71 | 2.3 | 2.09 | 1.86 | 2.02 |
Agnico Eagle Mines has exceptional EPS growth, generally positive cash flows, and an excellent current ratio of 2.02.
