3M CO (1MMM.MI) Stock Fundamental Analysis
BIT:1MMM - Euronext Milan - US88579Y1010 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1MMM. 1MMM was compared to 15 industry peers in the Industrial Conglomerates industry. While 1MMM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1MMM does not seem to be growing, but still is valued expensively.
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
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.
1MMM has a Return On Equity of 108.62%. This is amongst the best in the industry. 1MMM outperforms 100.00% of its industry peers.
The Return On Invested Capital of 1MMM (14.59%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MMM is above the industry average of 6.76%.
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
Looking at the Profit Margin, with a value of 16.98%, 1MMM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MMM has grown nicely.
With an excellent Operating Margin value of 20.38%, 1MMM belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MMM has remained more or less at the same level.
1MMM has a Gross Margin (41.33%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1MMM has declined.
| 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.
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
1MMM has an Altman-Z score of 3.70. This indicates that 1MMM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.70, 1MMM belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
1MMM has a debt to FCF ratio of 20.45. This is a negative value and a sign of low solvency as 1MMM would need 20.45 years to pay back of all of its debts.
1MMM's Debt to FCF ratio of 20.45 is on the low side compared to the rest of the industry. 1MMM is outperformed by 60.00% of its industry peers.
1MMM has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
1MMM's Debt to Equity ratio of 2.90 is on the low side compared to the rest of the industry. 1MMM is outperformed by 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 20.45 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.84
WACC7.94%
2.3 Liquidity
1MMM has a Current Ratio of 1.41. 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 Current ratio value of 1.41, 1MMM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.08, 1MMM is doing worse than 60.00% of the companies in the same industry.
| 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.
1MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
1MMM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.80%.
Measured over the past years, 1MMM shows a decrease in Revenue. The Revenue has been decreasing by -5.22% on average per year.
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
1MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.41% yearly.
Based on estimates for the next years, 1MMM will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y-1.86%
EPS Next 2Y3.37%
EPS Next 3Y5.56%
EPS Next 5Y5.41%
Revenue Next Year0.86%
Revenue Next 2Y1.95%
Revenue Next 3Y2.66%
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
A Price/Earnings ratio of 17.26 indicates a rather expensive valuation of 1MMM.
The rest of the industry has a similar Price/Earnings ratio as 1MMM.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1MMM is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.57 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 21.38. 1MMM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than 1MMM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1MMM is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.34 | ||
| EV/EBITDA | 12.15 |
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 2Y3.37%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, 1MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.91, 1MMM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, 1MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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
1MMM pays out 47.50% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.5%
EPS Next 2Y3.37%
EPS Next 3Y5.56%
BIT:1MMM (4/15/2025, 7:00:00 PM)
120.98
+2.58 (+2.18%)
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 Cap65.25B
Analysts75.65
Price Target123.47 (2.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend3.2
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)-2.66%
PT rev (3m)0.99%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 17.57 | ||
| P/S | 3.02 | ||
| P/FCF | 116.34 | ||
| P/OCF | 40.81 | ||
| P/B | 19.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.15 |
EPS(TTM)7.01
EY5.79%
EPS(NY)6.88
Fwd EY5.69%
FCF(TTM)1.04
FCFY0.86%
OCF(TTM)2.96
OCFY2.45%
SpS40.06
BVpS6.26
TBVpS-5.95
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 | 3.7 |
F-Score5
WACC7.94%
ROIC/WACC1.84
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-1.86%
EPS Next 2Y3.37%
EPS Next 3Y5.56%
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 Year0.86%
Revenue Next 2Y1.95%
Revenue Next 3Y2.66%
Revenue Next 5Y4.21%
EBIT growth 1Y-13.23%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.75%
EBIT Next 3Y15.33%
EBIT Next 5Y7.34%
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%