AEM Surges 16% In A Single Month, Should You Buy The Stock?

We believe there is not much to fear in AEM stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $77 Bil in market cap, Agnico Eagle Mines provides exploration, development, and production of mineral properties across Canada, Mexico, and Finland, operating through Northern and Southern Business segments with a flagship mine in Quebec.

[1] Valuation Looks High

This table highlights how AEM is valued vs broader market. For more details see: AEM Valuation Ratios

[2] Growth Is Very Strong

• Agnico Eagle Mines has seen its top line grow at an average rate of 28.4% over the last 3 years
• Its revenues have grown 28% from $6.9 Bil to $8.9 Bil in the last 12 months
• Also, its quarterly revenues grew 34.9% to $2.5 Bil in the most recent quarter from $1.8 Bil a year ago.

This table highlights how AEM is growing vs broader market. For more details see: AEM Revenue Comparison

[3] Profitability Appears Very Strong

• AEM last 12 month operating income was $3.7 Bil representing operating margin of 41.8%
• With cash flow margin of 47.3%, it generated nearly $4.2 Bil in operating cash flow over this period
• For the same period, AEM generated nearly $2.4 Bil in net income, suggesting net margin of about 26.5%

This table highlights how AEM profitability vs broader market. For more details see: AEM Operating Income Comparison

[4] Financial Stability Looks Strong

• AEM Debt was $1.3 Bil at the end of the most recent quarter, while its current Market Cap is $77 Bil. This implies Debt-to-Equity Ratio of 1.7%
• AEM Cash (including cash equivalents) makes up $1.2 Bil of $31 Bil in total Assets. This yields a Cash-to-Assets Ratio of 3.8%

[4] Downturn Resilience Is Weak

AEM has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• AEM stock fell 50.9% from a high of $76.39 on 7 January 2021 to $37.54 on 26 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 July 2024
• Since then, the stock increased to a high of $154.18 on 8 September 2025 , and currently trades at $153.76

 
2020 Covid Pandemic

• AEM stock fell 41.8% from a high of $62.45 on 21 January 2020 to $36.36 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 4 May 2020

 
2008 Global Financial Crisis

• AEM stock fell 72.9% from a high of $80.05 on 14 March 2008 to $21.70 on 27 October 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 4 November 2010

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read AEM Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.