Story updated at 9:55 a.m. to reflect market activity.
Agnico-Mines gained 0.1% to $33.49 in morning trading.
The firm maintained its "equal weight" rating for the stock. The inclusion of the Canadian Malartic mine improves production and cost profile for Agnico-Eagle, driving higher operating and FCF according to Barclays analyst Farooq Hamed.
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Separately, TheStreet Ratings team rates AGNICO EAGLE MINES LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AGNICO EAGLE MINES LTD (AEM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 17.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AEM's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AEM has a quick ratio of 1.94, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- AGNICO EAGLE MINES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AGNICO EAGLE MINES LTD swung to a loss, reporting -$2.34 versus $1.81 in the prior year.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, AGNICO EAGLE MINES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: AEM Ratings Report