AEMNEUTRAL

AEM Gross Margin Analysis

66.4%

Higher than 86% of Basic Materials sector peers

Updated 1837h ago·SEC filings & market data

Key Takeaway

With a gross margin of 66.4%, Agnico Eagle retains $0.664 of every dollar in revenue after covering the direct costs of producing gold, leaving the rest for other expenses and profit.

Sector Performance

86th percentile

AEM

66.4%

Sector Median

44.1%

Sector Avg

-39957.7%

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Deep Analysis

With a gross margin of 66.4%, Agnico Eagle retains $0.664 of every dollar in revenue after covering the direct costs of producing gold, leaving the rest for other expenses and profit.

This figure is well above the Basic Materials sector median of 45.1%, placing the company in the 87th percentile among its peers. The year-over-year change and quarter-over-quarter change are both listed as N/A, so there is no trend data available for the last eight quarters. The combination of a high gross margin relative to the sector with no trend information suggests the current competitive advantage is clear, but the lack of trajectory makes it impossible to assess whether that advantage is improving or eroding. This metric supports the overall NEUTRAL verdict because the strong profitability level is offset by the absence of trend data, leaving the investment case balanced.

Frequently Asked Questions

What does the Gross Margin tell investors about AEM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AEM's Gross Margin compare to its sector?

AEM's Gross Margin of 66.4% compares to a Basic Materials sector median of 44.1%, placing it in the 86th percentile.

Who are AEM's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: MP (44.1%), BHP (42.8%), PPG (42.1%), CDE (49.8%), PAAS (52.7%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.