3M CO (MMM.DE) Stock Fundamental Analysis
FRA:MMM - Deutsche Boerse Ag - US88579Y1010 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to MMM. MMM was compared to 15 industry peers in the Industrial Conglomerates industry. MMM has an excellent profitability rating, but there are some minor concerns on its financial health. MMM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
MMM had positive earnings in the past year.
In the past year MMM had a positive cash flow from operations.
Of the past 5 years MMM 4 years were profitable.
Each year in the past 5 years MMM had a positive operating cash flow.
1.2 Ratios
MMM has a Return On Assets of 10.47%. This is amongst the best in the industry. MMM outperforms 86.67% of its industry peers.
MMM has a Return On Equity of 108.62%. This is amongst the best in the industry. MMM outperforms 93.33% of its industry peers.
MMM has a Return On Invested Capital of 14.59%. This is amongst the best in the industry. MMM outperforms 93.33% of its industry peers.
MMM had an Average Return On Invested Capital over the past 3 years of 11.12%. This is above the industry average of 7.16%.
The last Return On Invested Capital (14.59%) for MMM 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%, MMM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
MMM's Profit Margin has improved in the last couple of years.
The Operating Margin of MMM (20.38%) is better than 86.67% of its industry peers.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
MMM has a worse Gross Margin (41.33%) than 60.00% of its industry peers.
MMM'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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MMM is creating value.
Compared to 1 year ago, MMM has less shares outstanding
MMM has less shares outstanding than it did 5 years ago.
MMM has a worse debt/assets ratio than last year.
2.2 Solvency
MMM has an Altman-Z score of 3.76. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.76, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM has a debt to FCF ratio of 20.45. This is a negative value and a sign of low solvency as MMM would need 20.45 years to pay back of all of its debts.
MMM has a Debt to FCF ratio of 20.45. This is in the lower half of the industry: MMM underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that MMM has dependencies on debt financing.
With a Debt to Equity ratio value of 2.90, MMM is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 20.45 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.82
WACC8%
2.3 Liquidity
MMM has a Current Ratio of 1.41. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MMM (1.41) is worse than 73.33% of its industry peers.
A Quick Ratio of 1.08 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a Quick ratio of 1.08. This is in the lower half of the industry: MMM underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.64%.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
Looking at the last year, MMM 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.96, MMM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MMM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MMM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.18, MMM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MMM.
MMM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMM is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 121.99 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The decent profitability rating of MMM 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
MMM has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.70, MMM is paying slightly less dividend.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of MMM decreases each year by -8.81%.
Dividend Growth(5Y)-8.81%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
47.50% of the earnings are spent on dividend by MMM. This is a bit on the high side, but may be sustainable.
DP47.5%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
FRA:MMM (3/7/2025, 7:00:00 PM)
132.04
-4.46 (-3.27%)
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 Cap71.68B
Analysts75.65
Price Target149.97 (13.58%)
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 Years5
Div Non Decr Years5
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)4
Avg Revenue beat(8)0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.3%
Revenue beat(16)8
Avg Revenue beat(16)0.74%
PT rev (1m)1.77%
PT rev (3m)5.25%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-9.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 18.18 | ||
| P/S | 3.17 | ||
| P/FCF | 121.99 | ||
| P/OCF | 42.79 | ||
| P/B | 20.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.71 |
EPS(TTM)7.35
EY5.57%
EPS(NY)7.26
Fwd EY5.5%
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%