3M CO (1MMM.MI) Stock Fundamental Analysis
BIT:1MMM - Euronext Milan - US88579Y1010 - Common Stock - Currency: EUR
Overall 1MMM gets a fundamental rating of 5 out of 10. We evaluated 1MMM against 13 industry peers in the Industrial Conglomerates industry. 1MMM has an excellent profitability rating, but there are some minor concerns on its financial health. 1MMM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1MMM was profitable.
1MMM had a positive operating cash flow in the past year.
1MMM had positive earnings in 4 of the past 5 years.
1MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MMM has a Return On Assets of 10.92%. This is amongst the best in the industry. 1MMM outperforms 92.86% of its industry peers.
1MMM has a better Return On Equity (97.69%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.70%, 1MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MMM is above the industry average of 6.48%.
The 3 year average ROIC (11.12%) for 1MMM is below the current ROIC(13.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.92% | ||
| ROE | 97.69% | ||
| ROIC | 13.7% |
ROA(3y)3.02%
ROA(5y)6.63%
ROE(3y)0.78%
ROE(5y)16.81%
ROIC(3y)11.12%
ROIC(5y)12.9%
1.3 Margins
1MMM has a better Profit Margin (17.79%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of 1MMM has grown nicely.
With an excellent Operating Margin value of 20.46%, 1MMM belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
1MMM's Operating Margin has been stable in the last couple of years.
1MMM has a Gross Margin of 41.21%. This is comparable to the rest of the industry: 1MMM outperforms 50.00% of its industry peers.
1MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.46% | ||
| PM (TTM) | 17.79% | ||
| GM | 41.21% |
OM growth 3Y-1.29%
OM growth 5Y0.76%
PM growth 3Y0.46%
PM growth 5Y3.85%
GM growth 3Y-4.12%
GM growth 5Y-2.49%
2. Health
2.1 Basic Checks
1MMM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1MMM has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MMM has less shares outstanding
1MMM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.90 indicates that 1MMM is not in any danger for bankruptcy at the moment.
1MMM has a Altman-Z score of 3.90. This is amongst the best in the industry. 1MMM outperforms 92.86% of its industry peers.
1MMM has a Debt/Equity ratio of 2.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1MMM (2.76) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.9 |
ROIC/WACC1.71
WACC8%
2.3 Liquidity
1MMM has a Current Ratio of 1.66. This is a normal value and indicates that 1MMM is financially healthy and should not expect problems in meeting its short term obligations.
1MMM has a Current ratio of 1.66. This is in the better half of the industry: 1MMM outperforms 71.43% of its industry peers.
1MMM has a Quick Ratio of 1.25. This is a normal value and indicates that 1MMM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, 1MMM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
1MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.67%.
Measured over the past years, 1MMM shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.72% on average per year.
Looking at the last year, 1MMM shows a very negative growth in Revenue. The Revenue has decreased by -20.06% in the last year.
1MMM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.22% yearly.
EPS 1Y (TTM)-22.67%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-21.34%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%
3.2 Future
Based on estimates for the next years, 1MMM will show a small growth in Earnings Per Share. The EPS will grow by 4.70% on average per year.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y3.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.29, which indicates a rather expensive current valuation of 1MMM.
The rest of the industry has a similar Price/Earnings ratio as 1MMM.
When comparing the Price/Earnings ratio of 1MMM to the average of the S&P500 Index (27.52), we can say 1MMM is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.95 indicates a rather expensive valuation of 1MMM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MMM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.58. 1MMM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MMM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.99 |
4.3 Compensation for Growth
1MMM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.85%
EPS Next 3Y5.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, 1MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.79, 1MMM is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.35, 1MMM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of 1MMM decreases each year by -8.81%.
Dividend Growth(5Y)-8.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
35.38% of the earnings are spent on dividend by 1MMM. This is a low number and sustainable payout ratio.
DP35.38%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
BIT:1MMM (7/3/2025, 7:00:00 PM)
129.66
+8.68 (+7.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners73.84%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap69.78B
Analysts75.65
Price Target134.92 (4.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend3.11
Dividend Growth(5Y)-8.81%
DP35.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.75%
Min EPS beat(2)0.09%
Max EPS beat(2)5.42%
EPS beat(4)4
Avg EPS beat(4)5.49%
Min EPS beat(4)0.09%
Max EPS beat(4)13.52%
EPS beat(8)8
Avg EPS beat(8)9.58%
EPS beat(12)11
Avg EPS beat(12)8.28%
EPS beat(16)15
Avg EPS beat(16)9.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)1.4%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)6
Avg Revenue beat(12)0.9%
Revenue beat(16)8
Avg Revenue beat(16)0.98%
PT rev (1m)9.28%
PT rev (3m)-8.66%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 17.95 | ||
| P/S | 3.33 | ||
| P/FCF | N/A | ||
| P/OCF | 83.79 | ||
| P/B | 18.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.99 |
EPS(TTM)6.39
EY4.93%
EPS(NY)7.22
Fwd EY5.57%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.55
OCFY1.19%
SpS38.99
BVpS7.1
TBVpS-4.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.92% | ||
| ROE | 97.69% | ||
| ROCE | 16.45% | ||
| ROIC | 13.7% | ||
| ROICexc | 17.8% | ||
| ROICexgc | 26.19% | ||
| OM | 20.46% | ||
| PM (TTM) | 17.79% | ||
| GM | 41.21% | ||
| FCFM | N/A |
ROA(3y)3.02%
ROA(5y)6.63%
ROE(3y)0.78%
ROE(5y)16.81%
ROIC(3y)11.12%
ROIC(5y)12.9%
ROICexc(3y)13.89%
ROICexc(5y)15.46%
ROICexgc(3y)26.14%
ROICexgc(5y)32.17%
ROCE(3y)13.54%
ROCE(5y)15.6%
ROICexcg growth 3Y-10.19%
ROICexcg growth 5Y-4.14%
ROICexc growth 3Y2.14%
ROICexc growth 5Y4.95%
OM growth 3Y-1.29%
OM growth 5Y0.76%
PM growth 3Y0.46%
PM growth 5Y3.85%
GM growth 3Y-4.12%
GM growth 5Y-2.49%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 85.2% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 15.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.9 |
F-Score7
WACC8%
ROIC/WACC1.71
Cap/Depr(3y)87.82%
Cap/Depr(5y)85.14%
Cap/Sales(3y)5.49%
Cap/Sales(5y)5.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.67%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-21.34%
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y3.5%
EBIT growth 1Y-12.49%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year31.55%
EBIT Next 3Y14.58%
EBIT Next 5Y9.76%
FCF growth 1Y-101.7%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-83.38%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%