Buffett Brain · Research note
Score updated 26 Sept 2026
AEM· Materials
Agnico Eagle Mines
Agnico Eagle Mines' 56.9% operating margin and 15.2% ROIC signal strong profitability, but P/E of 17 suggests valuation risk.
Buffett fit
Partial fit
Owner
57
Durability
81
Management
67
Price
58
Score updated 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Materials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Agnico Eagle Mines would involve managing a business with a 15.2% and substantial cash flow, as indicated by its $4.26B .
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Agnico Eagle has shown resilience with profitability in all of the last five years and a 41.3% EPS CAGR.
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Management has grown the share count by 19.8% CAGR over five years, diluting existing shareholders, but has also achieved a high dividend CAGR of 27.54%.
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The current yield of 4.69% and a of 17 suggest the market prices in robust growth expectations.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1 of 56.9% is top-quintile in sector where the cutoff is 21.7%.
- 2 of 61.8% well exceeds sector top-quintile of 47.3%.
- 3Net debt/EBITDA of -0.29 indicates a net cash position.
- 4Interest coverage ratio of 90.7 suggests strong ability to meet debt obligations.
Concerns
7- 1 of 17 suggests valuation may not offer a .
- 2Share count CAGR of 19.8% over 5 years indicates dilution risk.
- 3 yield of 4.69% is below the desired 8-10% threshold.
- 4 5y avg of 9.3% falls below the sector top-quintile of 12.2%.
Price history
$176+232.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Agnico Eagle Mines engages in the exploration and production of gold, with its flagship LaRonde mine in Quebec boasting 3 million ounces in reserves. It operates through Northern and Southern Business segments, producing gold and exploring for silver, zinc, and copper. The company reported $11.91B in revenue and $4.46B in net income TTM, demonstrating strong cash flow with a /Net Income ratio of 0.96.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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