Agnico Eagle Return On Asset vs. Return On Equity

AE9 Stock  EUR 75.64  0.66  0.88%   
Based on the measurements of profitability obtained from Agnico Eagle's financial statements, Agnico Eagle Mines may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Agnico Eagle's ability to earn profits and add value for shareholders.
For Agnico Eagle profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Agnico Eagle to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Agnico Eagle Mines utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Agnico Eagle's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Agnico Eagle Mines over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Agnico Eagle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Agnico Eagle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Agnico Eagle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Agnico Eagle Mines Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Agnico Eagle's current stock value. Our valuation model uses many indicators to compare Agnico Eagle value to that of its competitors to determine the firm's financial worth.
Agnico Eagle Mines is rated fourth in return on asset category among its peers. It also is rated fourth in return on equity category among its peers reporting about  1.18  of Return On Equity per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Agnico Eagle's earnings, one of the primary drivers of an investment's value.

Agnico Return On Equity vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Agnico Eagle

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0512
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Agnico Eagle

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0603
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Agnico Return On Equity Comparison

Agnico Eagle is rated third in return on equity category among its peers.

Agnico Eagle Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Agnico Eagle, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Agnico Eagle will eventually generate negative long term returns. The profitability progress is the general direction of Agnico Eagle's change in net profit over the period of time. It can combine multiple indicators of Agnico Eagle, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. Agnico Eagle Mines Limited was founded in 1953 and is headquartered in Toronto, Canada. AGNICO EAGLE operates under Gold classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5990 people.

Agnico Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Agnico Eagle. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Agnico Eagle position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Agnico Eagle's important profitability drivers and their relationship over time.

Use Agnico Eagle in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Agnico Eagle position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agnico Eagle will appreciate offsetting losses from the drop in the long position's value.

Agnico Eagle Pair Trading

Agnico Eagle Mines Pair Trading Analysis

The ability to find closely correlated positions to Agnico Eagle could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Agnico Eagle when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Agnico Eagle - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Agnico Eagle Mines to buy it.
The correlation of Agnico Eagle is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Agnico Eagle moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Agnico Eagle Mines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Agnico Eagle can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Agnico Eagle position

In addition to having Agnico Eagle in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Wireless Thematic Idea Now

Wireless
Wireless Theme
Companies providing wireless technology and communication services. The Wireless theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Wireless Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Agnico Stock

When determining whether Agnico Eagle Mines is a strong investment it is important to analyze Agnico Eagle's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Agnico Eagle's future performance. For an informed investment choice regarding Agnico Stock, refer to the following important reports:
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You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Agnico Eagle's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Agnico Eagle Mines at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Agnico Eagle's income statement, its balance sheet, and the statement of cash flows.
Potential Agnico Eagle investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Agnico Eagle investors may work on each financial statement separately, they are all related. The changes in Agnico Eagle's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Agnico Eagle's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.