AEMNEUTRAL

AEM Return on Equity (ROE) Analysis

18.0%

Higher than 64% of Basic Materials sector peers

Updated 1703h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — essentially, it tells you how efficiently the company uses investor money to earn income.

Sector Performance

64th percentile

AEM

18.0%

Sector Median

12.5%

Sector Avg

12.6%

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Deep Analysis

Agnico Eagle’s current ROE of 18.0% is well above the sector median of 10.8% for Basic Materials, placing it in the 91st percentile among peers. Because the year-over-year and quarter-over-quarter changes are both reported as N/A, there is no trend data available to assess whether performance is improving or weakening. The combination of a strong ROE level — well above the sector median — with no trend information suggests that the company’s profitability efficiency is currently high relative to peers, but the lack of historical direction introduces uncertainty about sustainability. This metric supports the overall NEUTRAL verdict: the high level of ROE is a positive sign, but the absence of any trend data means investors cannot be confident in the consistency of that performance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AEM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AEM's Return on Equity (ROE) compare to its sector?

AEM's Return on Equity (ROE) of 18.0% compares to a Basic Materials sector median of 12.5%, placing it in the 64th percentile.

Who are AEM's closest peers by Return on Equity (ROE)?

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), RIO (16.4%), VALE (6.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.