3M CO (MMM.DE) Stock Fundamental Analysis
FRA:MMM - Deutsche Boerse Ag - US88579Y1010 - Common Stock - Currency: EUR
Taking everything into account, MMM scores 5 out of 10 in our fundamental rating. MMM was compared to 14 industry peers in the Industrial Conglomerates industry. MMM scores excellent on profitability, but there are some minor concerns on its financial health. MMM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MMM was profitable.
In the past year MMM had a positive cash flow from operations.
MMM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MMM had a positive operating cash flow.
1.2 Ratios
MMM has a Return On Assets of 10.92%. This is amongst the best in the industry. MMM outperforms 85.71% of its industry peers.
MMM has a better Return On Equity (97.69%) than 92.86% of its industry peers.
MMM has a Return On Invested Capital of 13.70%. This is amongst the best in the industry. MMM outperforms 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMM is above the industry average of 7.10%.
The last Return On Invested Capital (13.70%) for MMM is above the 3 year average (11.12%), which is a sign of increasing profitability.
| 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
MMM has a better Profit Margin (17.79%) than 78.57% of its industry peers.
MMM's Profit Margin has improved in the last couple of years.
The Operating Margin of MMM (20.46%) is better than 85.71% of its industry peers.
MMM's Operating Margin has been stable in the last couple of years.
MMM has a Gross Margin (41.21%) which is comparable to the rest of the industry.
MMM'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMM is creating some value.
Compared to 1 year ago, MMM has less shares outstanding
The number of shares outstanding for MMM has been reduced compared to 5 years ago.
MMM has a worse debt/assets ratio than last year.
2.2 Solvency
MMM has an Altman-Z score of 3.97. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.97, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 2.76 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a Debt to Equity ratio of 2.76. This is amonst the worse of the industry: MMM underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.97 |
ROIC/WACC1.72
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.66 indicates that MMM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.66, MMM is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a Quick ratio of 1.25. This is comparable to the rest of the industry: MMM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased strongly by -22.67% in the last year.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
MMM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.06%.
The Revenue has been decreasing by -5.22% on average over the past years.
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
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.70% yearly.
Based on estimates for the next years, MMM will show a small growth in Revenue. The Revenue will grow by 3.50% on average per year.
EPS Next Y-2.84%
EPS Next 2Y2.7%
EPS Next 3Y5.08%
EPS Next 5Y4.7%
Revenue Next Year1.36%
Revenue Next 2Y2.17%
Revenue Next 3Y2.55%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MMM is valuated rather expensively with a Price/Earnings ratio of 20.91.
Compared to the rest of the industry, the Price/Earnings ratio of MMM indicates a slightly more expensive valuation: MMM is more expensive than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MMM is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.56 indicates a rather expensive valuation of MMM.
MMM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (21.76), we can say MMM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than MMM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.66 |
4.3 Compensation for Growth
The excellent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.7%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, MMM has a reasonable but not impressive dividend return.
MMM's Dividend Yield is comparable with the industry average which is at 3.68.
Compared to an average S&P500 Dividend Yield of 2.37, MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of MMM 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 MMM. This is a low number and sustainable payout ratio.
DP35.38%
EPS Next 2Y2.7%
EPS Next 3Y5.08%
FRA:MMM (7/11/2025, 7:00:00 PM)
133.4
-2.58 (-1.9%)
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 Cap71.79B
Analysts75.65
Price Target134.68 (0.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend3.08
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)3
Avg Revenue beat(8)-0.16%
Revenue beat(12)5
Avg Revenue beat(12)0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.49%
PT rev (1m)-0.35%
PT rev (3m)-7.17%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.56 | ||
| P/S | 3.43 | ||
| P/FCF | N/A | ||
| P/OCF | 86.4 | ||
| P/B | 18.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.66 |
EPS(TTM)6.38
EY4.78%
EPS(NY)7.19
Fwd EY5.39%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.54
OCFY1.16%
SpS38.9
BVpS7.08
TBVpS-4.85
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 | 3.97 |
F-Score7
WACC7.96%
ROIC/WACC1.72
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-2.84%
EPS Next 2Y2.7%
EPS Next 3Y5.08%
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 Year1.36%
Revenue Next 2Y2.17%
Revenue Next 3Y2.55%
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%