Is it a good company at a reasonable price? When dividend growth stalls it is never a good sign. Analysts seem to expect a big increase in EPS and AEPS in 2025, and yet the company had not raised the dividends? And there is insider selling.
I do not own this stock of Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM). Recently, two mining stocks were recommended. Agnico-Eagle Mines Ltd (TSX-AEM) was recommended by Advice for Investors site. Franco-Nevada (FNV.T) was recommended by a member of Ellen’s Investment Club. I decided to look at Agnico-Eagle Mines because it was on the Money Sense List of Dividend Stocks.
When I was updating my spreadsheet, I noticed that growth has been quite good and shareholders have done well, but you have to be careful when you buy and not pay too much. This stock has cyclical in the past, but it has really taken off from 2023 and almost straight up. So far this year the stock price is up 107%.
All the officers I am following, including the CEO and CFO have sold shares in the last year. The Chairman has also sold shares. The other directors I am following bought some shares.
If you had invested in this company in December 2014, for $1,017.10 you would have bought 35 shares at $29.06 per share. In December 2024, after 10 years you would have received $431.39 in dividends. The stock would be worth $3,936.10. Your total return would have been $4,367.49. This would be a total return of 16.43% per year with 14.49% from capital gain and 1.94% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $29.06 | $1,017.10 | 35 | 10 | $431.39 | $3,936.10 | $4,367.49 |
The current dividend yield is low with dividend growth that has been good and has recently stalled. The current dividend yield is low (below 2%) at 0.91%. The 10 year and historical median dividend yields are also low at 1.35% and 1.05%. The 5 year median dividend yield is moderate (2% to 4%) at 2.49%. The dividend yield has gone down recently because this stock’s stock price has soared. The dividend growth for the past 5 years is good and up 23% per year. However, there has been no dividend increase since 2022.
The Dividend Payout Ratios (DPR) are currently good. The DPR for 2024 for Earnings per Share (EPS) is good at 42% with 5 year coverage high at 53%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 38% with 5 year coverage high at 58%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 20% with 5 year coverage high at 24%. The DPR for 2024 for Free Cash Flow (FCF) is good at 39% with 5 year coverage at high at 59%. In 2024, FCF varies from $2,050M to $4,185M and I am using the $2,050M value. Expected DPR for 2025 is 19% because analysts expect a big increase in EPS.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 42.33% | 52.65% |
| AEPS | 37.83% | 57.78% |
| CFPS | 20.80% | 24.16% |
| FCF | 39.38% | 59.34% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.15 and currently at 0.07. The Liquidity Ratio for 2024 is good at 1.86 and 1.75 currently. The Debt Ratio for 2024 is good at 3.94 and 3.20 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.44 and 0.44 and currently at 1.45 and 0.45.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.15 | 0.07 |
| Intang/GW | 0.10 | 0.05 |
| Liquidity | 1.86 | 1.75 |
| Liq. + CF | 3.94 | 5.05 |
| Debt Ratio | 3.28 | 3.20 |
| Leverage | 1.44 | 1.45 |
| D/E Ratio | 0.44 | 0.45 |
The Total Return per year is shown below for years of 5 to 21 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 26.37% | 8.66% | 6.63% | 2.03% |
| 2014 | 10 | 20.02% | 16.43% | 14.49% | 1.94% |
| 2009 | 15 | 18.16% | 5.83% | 4.66% | 1.17% |
| 2004 | 20 | 23.09% | 11.43% | 10.06% | 1.37% |
| 2003 | 21 | 21.47% | 11.12% | 9.84% | 1.29% |
The Total Return per year is shown below for years of 5 to 21 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 23.81% | 6.76% | 4.69% | 2.07% |
| 2014 | 10 | 17.46% | 14.00% | 12.11% | 1.89% |
| 2009 | 15 | 15.68% | 3.71% | 2.54% | 1.18% |
| 2004 | 20 | 22.00% | 10.65% | 9.14% | 1.52% |
| 2003 | 21 | 20.85% | 10.78% | 9.31% | 1.47% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 19.32, 27.95, 34.35. The corresponding 10 year ratios are 20.78, 29.46 and 37.20. The corresponding historical ratios are 22.27, 29.46 and 37.20. The current ratio is 21.22 based on EPS estimate for 2025 of $11.40 and a stock price of $241.78. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$. You have to wonder why analysts think that the EPS will go up 119% this year from $3.78 to $8.28 US$.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 19.46, 24.48 and 29.51. The corresponding 10 year ratios are 29.62, 39.11, and 48.71. The corresponding historical ratios are 25.27, 35.48, and 46.89. The current ratio is 21.96 based on AEPS estimate for 2025 of $7.99 and a stock price of $175.44. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is cheap. This testing is in US$ and you will get a similar result in CDN$. Analysts expect the AEPS to go up 89% from 4.23 to $7.99.
I get a Graham Price of $117.69. The 10-year low, median, and high median Price/Graham Price Ratios are 1.50, 2.11 and 2.53. The current ratio is 2.05 based on a stock price of $241.78. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 2.13. The current P/B Ratio is 4.32 based on a Book Value of $20,505.M, Book Value per Share of $41.29 and a stock price of $175.44. The current P/B Ratio is 103% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 12.03. The current ratio is 14.05 based on Cash Flow per Share estimate for 2025 of $12.49, Cash Flow of $6,302M and a stock price of $175.44. The current ratio is 17% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.
I get an historical median dividend yield of 1.03%. The current dividend yield is 0.91% based on dividends of $1.60 and a Stock Price of $175.44. The current dividend yield is 11% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.
I get a 10 year median dividend yield of 1.03%. The current dividend yield is 0.91% based on dividends of $1.60 and a Stock Price of $175.44. The current dividend yield is 32% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 4.24. The current P/S Ratio is 7.54 based on a stock price of $175.44, Revenue estimate for 2025 of $11,741M and Revenue per Share of $23.27. The current ratio is 78% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.
Results of stock price testing is that the stock price is probably expensive. The 10 year dividend yield test is saying that the stock price is relatively expensive and this is confirmed by the P/S Ratio test. The rest of the testing runs from cheap to expensive. Note that this company publishes it financials in US$ and the estimates are given in US$.
When I look at analysts’ recommendations, I find Strong Buy (11), Buy (5), Hold (3), and Sell (1). The consensus is a Strong Buy. The 12 month stock price consensus is $271.36 ($197.08 US$) with a high of $351.11 ($255.00 US$) and low of $96.38 ($70.00 US$). The consensus stock price of $271.36 implies a total return of 13.15% with 12.23% from capital gains and 0.91% from dividends based on a current stock price of $241.78.
Analysts on Stock Chase certainly like this company. Many say be cautious as gold producers could be overbought. Chris MacDonald on Motley Fool likes gold as a hedge against uncertainty. Amy Legate-Wolfe on Motley Fool likes this stock as a low-risk way to ride the gold rally. I am not sure I agree with this as gold has always been rather cyclical. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their third quarter of 2025.
Zacks via Yahoo Financial reviews this stock and really likes it. Simply Wall Street via Yahoo Finance reviews this stock. They think it is overvalued by 99% with a fair value of $72.37 US$. They have one warning of significant insider selling over the past 3 months.
Agnico Eagle is a gold miner with mines in Canada, Mexico, Finland, and Australia. Its web site is here Agnico Eagle Mines Ltd.
The last stock I wrote about was about was KP Tissue Inc (TSX-KPT, OTC-KPTSF) ... learn more. The next stock I will write about will be Titanium Transportation Group Inc (TSX-TTNM, OTCQX-TTNMF) ... learn more on Monday, December 22, 2025 around 5 pm.
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