3M CO (MMM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MMM - US88579Y1010 - Common Stock
138.4 EUR
+2.64 (+1.94%)
We assign a fundamental rating of 4 out of 10 to MMM. MMM was compared to 18 industry peers in the Industrial Conglomerates industry. While MMM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MMM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year MMM was profitable.
- MMM had a positive operating cash flow in the past year.
- Of the past 5 years MMM 4 years were profitable.
- MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MMM has a better Return On Assets (8.61%) than 93.75% of its industry peers.
- Looking at the Return On Equity, with a value of 68.46%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- MMM's Return On Invested Capital of 13.64% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MMM is significantly above the industry average of 7.16%.
- The last Return On Invested Capital (13.64%) for MMM is above the 3 year average (12.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 68.46% | ||
| ROIC | 13.64% |
ROA(3y)1.75%
ROA(5y)6.05%
ROE(3y)10.52%
ROE(5y)22.03%
ROIC(3y)12.18%
ROIC(5y)11.3%
1.3 Margins
- MMM has a Profit Margin of 13.03%. This is in the better half of the industry: MMM outperforms 75.00% of its industry peers.
- In the last couple of years the Profit Margin of MMM has declined.
- MMM has a better Operating Margin (19.29%) than 87.50% of its industry peers.
- MMM's Operating Margin has declined in the last couple of years.
- MMM has a Gross Margin of 39.91%. This is comparable to the rest of the industry: MMM outperforms 50.00% of its industry peers.
- MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.29% | ||
| PM (TTM) | 13.03% | ||
| GM | 39.92% |
OM growth 3Y36.93%
OM growth 5Y-2.37%
PM growth 3Y-16.13%
PM growth 5Y-5.11%
GM growth 3Y0.43%
GM growth 5Y-3.86%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMM is still creating some value.
- MMM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MMM has less shares outstanding
- Compared to 1 year ago, MMM has a worse debt to assets ratio.
2.2 Solvency
- MMM has a debt to FCF ratio of 9.33. This is a negative value and a sign of low solvency as MMM would need 9.33 years to pay back of all of its debts.
- MMM has a Debt to FCF ratio of 9.33. This is in the better half of the industry: MMM outperforms 62.50% of its industry peers.
- A Debt/Equity ratio of 2.30 is on the high side and indicates that MMM has dependencies on debt financing.
- MMM's Debt to Equity ratio of 2.30 is on the low side compared to the rest of the industry. MMM is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 9.33 | ||
| Altman-Z | N/A |
ROIC/WACC1.67
WACC8.15%
2.3 Liquidity
- MMM has a Current Ratio of 1.71. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.71, MMM belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- A Quick Ratio of 1.33 indicates that MMM should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.33, MMM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- MMM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
- Measured over the past years, MMM shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.63% on average per year.
- Looking at the last year, MMM shows a small growth in Revenue. The Revenue has grown by 1.52% in the last year.
- Measured over the past years, MMM shows a decrease in Revenue. The Revenue has been decreasing by -4.97% on average per year.
EPS 1Y (TTM)1%
EPS 3Y-7.24%
EPS 5Y-1.63%
EPS Q2Q%8.93%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-1.57%
Revenue growth 5Y-4.97%
Sales Q2Q%3.7%
3.2 Future
- The Earnings Per Share is expected to grow by 5.78% on average over the next years.
- Based on estimates for the next years, MMM will show a small growth in Revenue. The Revenue will grow by 3.91% on average per year.
EPS Next Y7.89%
EPS Next 2Y8.05%
EPS Next 3Y7.7%
EPS Next 5Y5.78%
Revenue Next Year3.49%
Revenue Next 2Y3.29%
Revenue Next 3Y3.04%
Revenue Next 5Y3.91%
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 20.17, which indicates a rather expensive current valuation of MMM.
- Based on the Price/Earnings ratio, MMM is valued a bit cheaper than 62.50% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. MMM is valued slightly cheaper when compared to this.
- MMM is valuated rather expensively with a Price/Forward Earnings ratio of 18.69.
- Based on the Price/Forward Earnings ratio, MMM is valued a bit cheaper than 68.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y8.05%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
- MMM has a Yearly Dividend Yield of 1.82%.
- Compared to an average industry Dividend Yield of 2.95, MMM is paying slightly less dividend.
- MMM's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
- The dividend of MMM decreases each year by -8.82%.
Dividend Growth(5Y)-8.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y8.05%
EPS Next 3Y7.7%
3M CO / MMM.DE FAQ
What is the ChartMill fundamental rating of 3M CO (MMM.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MMM.DE.
What is the valuation status of 3M CO (MMM.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to 3M CO (MMM.DE). This can be considered as Overvalued.
Can you provide the profitability details for 3M CO?
3M CO (MMM.DE) has a profitability rating of 7 / 10.
What is the valuation of 3M CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for 3M CO (MMM.DE) is 20.17 and the Price/Book (PB) ratio is 18.19.
What is the expected EPS growth for 3M CO (MMM.DE) stock?
The Earnings per Share (EPS) of 3M CO (MMM.DE) is expected to grow by 7.89% in the next year.