3M CO (1MMM.MI) Stock Fundamental Analysis
BIT:1MMM - Euronext Milan - US88579Y1010 - Common Stock - Currency: EUR
1MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Industrial Conglomerates industry. While 1MMM has a great profitability rating, 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.
In the past year 1MMM had a positive cash flow from operations.
1MMM had positive earnings in 4 of the past 5 years.
In the past 5 years 1MMM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.47%, 1MMM belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 108.62%, 1MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of 1MMM (14.59%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MMM is above the industry average of 7.16%.
The last Return On Invested Capital (14.59%) for 1MMM is above the 3 year average (11.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 108.62% | ||
| ROIC | 14.59% |
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 Profit Margin of 16.98%. This is in the better half of the industry: 1MMM outperforms 73.33% of its industry peers.
In the last couple of years the Profit Margin of 1MMM has grown nicely.
The Operating Margin of 1MMM (20.38%) is better than 93.33% of its industry peers.
1MMM's Operating Margin has been stable in the last couple of years.
1MMM has a Gross Margin (41.33%) which is comparable to the rest of the industry.
1MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.38% | ||
| PM (TTM) | 16.98% | ||
| GM | 41.33% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MMM is creating value.
1MMM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1MMM has been reduced compared to 5 years ago.
1MMM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.76 indicates that 1MMM is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1MMM (3.76) is better than 93.33% of its industry peers.
The Debt to FCF ratio of 1MMM is 20.45, which is on the high side as it means it would take 1MMM, 20.45 years of fcf income to pay off all of its debts.
1MMM has a Debt to FCF ratio of 20.45. This is comparable to the rest of the industry: 1MMM outperforms 46.67% of its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that 1MMM has dependencies on debt financing.
The Debt to Equity ratio of 1MMM (2.90) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 20.45 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.82
WACC8%
2.3 Liquidity
A Current Ratio of 1.41 indicates that 1MMM should not have too much problems paying its short term obligations.
The Current ratio of 1MMM (1.41) is worse than 66.67% of its industry peers.
1MMM has a Quick Ratio of 1.08. 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 worse Quick ratio (1.08) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for 1MMM have decreased strongly by -13.64% in the last year.
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 -24.80% in the last year.
The Revenue has been decreasing by -5.22% on average over the past years.
EPS 1Y (TTM)-13.64%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-30.58%
Revenue 1Y (TTM)-24.8%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-24.5%
3.2 Future
The Earnings Per Share is expected to grow by 5.41% on average over the next years.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y-1.17%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
EPS Next 5Y5.41%
Revenue Next Year1.01%
Revenue Next 2Y2.1%
Revenue Next 3Y2.95%
Revenue Next 5Y4.21%
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
With a Price/Earnings ratio of 17.94, 1MMM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1MMM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1MMM is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.15, which indicates a rather expensive current valuation of 1MMM.
1MMM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1MMM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MMM.
60.00% of the companies in the same industry are cheaper than 1MMM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 121.8 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
The excellent profitability rating of 1MMM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.29%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
1MMM has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.99, 1MMM pays less dividend than the industry average, which is at 3.70. 80.00% of the companies listed in the same industry pay a better dividend than 1MMM!
Compared to an average S&P500 Dividend Yield of 2.33, 1MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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
47.50% of the earnings are spent on dividend by 1MMM. This is a bit on the high side, but may be sustainable.
DP47.5%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
BIT:1MMM (3/7/2025, 7:00:00 PM)
131.84
-4.68 (-3.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners69.27%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap71.58B
Analysts75.65
Price Target147.72 (12.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend3.34
Dividend Growth(5Y)-8.81%
DP47.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.51%
Min EPS beat(2)0.09%
Max EPS beat(2)2.93%
EPS beat(4)4
Avg EPS beat(4)7.32%
Min EPS beat(4)0.09%
Max EPS beat(4)13.52%
EPS beat(8)8
Avg EPS beat(8)11.8%
EPS beat(12)11
Avg EPS beat(12)8.96%
EPS beat(16)15
Avg EPS beat(16)10.21%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)-0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)1.4%
Revenue beat(8)5
Avg Revenue beat(8)1.67%
Revenue beat(12)6
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)1.23%
PT rev (1m)0.4%
PT rev (3m)20%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 18.15 | ||
| P/S | 3.16 | ||
| P/FCF | 121.8 | ||
| P/OCF | 42.72 | ||
| P/B | 20.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.7 |
EPS(TTM)7.35
EY5.57%
EPS(NY)7.26
Fwd EY5.51%
FCF(TTM)1.08
FCFY0.82%
OCF(TTM)3.09
OCFY2.34%
SpS41.69
BVpS6.52
TBVpS-6.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 108.62% | ||
| ROCE | 17.51% | ||
| ROIC | 14.59% | ||
| ROICexc | 19.98% | ||
| ROICexgc | 31.16% | ||
| OM | 20.38% | ||
| PM (TTM) | 16.98% | ||
| GM | 41.33% | ||
| FCFM | 2.6% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 20.45 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 86.65% | ||
| Cap/Sales | 4.81% | ||
| Interest Coverage | 9.92 | ||
| Cash Conversion | 28.55% | ||
| Profit Quality | 15.29% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.76 |
F-Score5
WACC8%
ROIC/WACC1.82
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)-13.64%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-30.58%
EPS Next Y-1.17%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
EPS Next 5Y5.41%
Revenue 1Y (TTM)-24.8%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-24.5%
Revenue Next Year1.01%
Revenue Next 2Y2.1%
Revenue Next 3Y2.95%
Revenue Next 5Y4.21%
EBIT growth 1Y-13.23%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year35.69%
EBIT Next 3Y15.66%
EBIT Next 5YN/A
FCF growth 1Y-87.4%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-72.77%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%