GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Agnico Eagle Mines Ltd (NYSE:AEM) » Definitions » Altman Z-Score

AEM (Agnico Eagle Mines) Altman Z-Score : 3.35 (As of Oct. 31, 2024)


View and export this data going back to 2000. Start your Free Trial

What is Agnico Eagle Mines Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.41 is strong.

Agnico Eagle Mines has a Altman Z-Score of 3.35, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Agnico Eagle Mines's Altman Z-Score or its related term are showing as below:

AEM' s Altman Z-Score Range Over the Past 10 Years
Min: 1.25   Med: 2.4   Max: 3.86
Current: 3.41

During the past 13 years, Agnico Eagle Mines's highest Altman Z-Score was 3.86. The lowest was 1.25. And the median was 2.40.


Agnico Eagle Mines Altman Z-Score Historical Data

The historical data trend for Agnico Eagle Mines's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Agnico Eagle Mines Altman Z-Score Chart

Agnico Eagle Mines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.91 3.27 2.56 2.40 2.36

Agnico Eagle Mines Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.25 2.14 2.36 2.41 2.60

Competitive Comparison of Agnico Eagle Mines's Altman Z-Score

For the Gold subindustry, Agnico Eagle Mines's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Agnico Eagle Mines's Altman Z-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Agnico Eagle Mines's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Agnico Eagle Mines's Altman Z-Score falls into.



Agnico Eagle Mines Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Agnico Eagle Mines's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0314+1.4*0.0469+3.3*0.0426+0.6*4.7533+1.0*0.2494
=3.35

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $29,291 Mil.
Total Current Assets was $2,712 Mil.
Total Current Liabilities was $1,791 Mil.
Retained Earnings was $1,373 Mil.
Pre-Tax Income was 710.206 + 489.048 + -324.082 + 271.312 = $1,146 Mil.
Interest Expense was -34.473 + -36.265 + 3.773 + -35.704 = $-103 Mil.
Revenue was 2076.621 + 1829.823 + 1756.64 + 1642.411 = $7,305 Mil.
Market Cap (Today) was $44,181 Mil.
Total Liabilities was $9,295 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2712.334 - 1791.224)/29291.206
=0.0314

X2=Retained Earnings/Total Assets
=1373.099/29291.206
=0.0469

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1146.484 - -102.669)/29291.206
=0.0426

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=44180.767/9294.791
=4.7533

X5=Revenue/Total Assets
=7305.495/29291.206
=0.2494

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Agnico Eagle Mines has a Altman Z-Score of 3.35 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Agnico Eagle Mines  (NYSE:AEM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Agnico Eagle Mines Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Agnico Eagle Mines's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Agnico Eagle Mines Business Description

Address
145 King Street East, Suite 400, Toronto, ON, CAN, M5C 2Y7
Agnico Eagle is a gold miner with mines in Canada, Mexico, Finland, and Australia. Agnico operated just one mine, LaRonde, as recently as 2008 before bringing its other mines online in rapid succession in the following years. It merged with Kirkland Lake Gold in 2022, acquiring the Detour Lake and Macassa mines in Canada along with the high-grade, low-cost Fosterville mine in Australia. It produced more than 3.4 million gold ounces in 2023 and had about 15 years of gold reserves at end 2023. Agnico Eagle is focused on increasing gold production in lower-risk jurisdictions and bought the remaining 50% of its Canadian Malartic mine along with the Wasamac project and other assets from Yamana Gold in 2023.