3M CO (MMM.DE) Stock Fundamental Analysis
Europe - FRA:MMM - US88579Y1010 - Common Stock
132.6 EUR
+0.58 (+0.44%)
MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Industrial Conglomerates industry. While MMM has a great profitability rating, 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 negative 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's Return On Assets of 10.37% is amongst the best of the industry. MMM outperforms 93.33% of its industry peers.
Looking at the Return On Equity, with a value of 91.82%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MMM has a better Return On Invested Capital (13.42%) than 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 6.08%.
The 3 year average ROIC (11.12%) for MMM is below the current ROIC(13.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.37% | ||
| ROE | 91.82% | ||
| ROIC | 13.42% |
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 Profit Margin of 16.01%. This is amongst the best in the industry. MMM outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of MMM has grown nicely.
With an excellent Operating Margin value of 19.75%, MMM belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
MMM's Operating Margin has been stable in the last couple of years.
MMM has a Gross Margin (41.11%) which is in line with its industry peers.
MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.75% | ||
| PM (TTM) | 16.01% | ||
| GM | 41.11% |
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
MMM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MMM has been reduced compared to 1 year ago.
Compared to 5 years ago, MMM has less shares outstanding
MMM has a worse debt/assets ratio than last year.
2.2 Solvency
MMM has an Altman-Z score of 4.11. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.11, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
MMM has a worse Debt to Equity ratio (2.91) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.11 |
ROIC/WACC1.74
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.72 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.72, MMM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, MMM is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased strongly by -18.26% in the last year.
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 -13.97% in the last year.
The Revenue has been decreasing by -5.22% on average over the past years.
EPS 1Y (TTM)-18.26%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%11.92%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%2.31%
3.2 Future
Based on estimates for the next years, MMM will show a small growth in Earnings Per Share. The EPS will grow by 4.70% on average per year.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y0.07%
EPS Next 2Y3.74%
EPS Next 3Y5.68%
EPS Next 5Y4.7%
Revenue Next Year2.48%
Revenue Next 2Y2.67%
Revenue Next 3Y2.78%
Revenue Next 5Y3.5%
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
The Price/Earnings ratio is 20.28, which indicates a rather expensive current valuation of MMM.
MMM's Price/Earnings is on the same level as the industry average.
MMM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.17, which indicates a rather expensive current valuation of MMM.
Based on the Price/Forward Earnings ratio, MMM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
MMM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMM does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)272.91
PEG (5Y)N/A
EPS Next 2Y3.74%
EPS Next 3Y5.68%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 13.88, MMM is paying slightly less dividend.
MMM's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
MMM pays out 39.27% of its income as dividend. This is a sustainable payout ratio.
DP39.27%
EPS Next 2Y3.74%
EPS Next 3Y5.68%
FRA:MMM (9/16/2025, 2:49:20 PM)
132.6
+0.58 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners74.28%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap70.63B
Analysts75.65
Price Target137.98 (4.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend3.1
Dividend Growth(5Y)-8.81%
DP39.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)5.42%
Max EPS beat(2)6.18%
EPS beat(4)4
Avg EPS beat(4)3.66%
Min EPS beat(4)0.09%
Max EPS beat(4)6.18%
EPS beat(8)8
Avg EPS beat(8)7.24%
EPS beat(12)11
Avg EPS beat(12)8.66%
EPS beat(16)15
Avg EPS beat(16)8.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)-0.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.27%
Revenue beat(12)4
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)0.26%
PT rev (1m)-1.58%
PT rev (3m)0.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.93%
EPS NY rev (1m)2.97%
EPS NY rev (3m)3.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 18.17 | ||
| P/S | 3.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 19.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.01 |
EPS(TTM)6.54
EY4.93%
EPS(NY)7.3
Fwd EY5.5%
FCF(TTM)-3.16
FCFYN/A
OCF(TTM)-1.6
OCFYN/A
SpS39.26
BVpS6.85
TBVpS-5.27
PEG (NY)272.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.37% | ||
| ROE | 91.82% | ||
| ROCE | 16.1% | ||
| ROIC | 13.42% | ||
| ROICexc | 15.59% | ||
| ROICexgc | 22.04% | ||
| OM | 19.75% | ||
| PM (TTM) | 16.01% | ||
| GM | 41.11% | ||
| 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-Score4
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 80.94% | ||
| Cap/Sales | 3.99% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.11 |
F-Score4
WACC7.7%
ROIC/WACC1.74
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)-18.26%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%11.92%
EPS Next Y0.07%
EPS Next 2Y3.74%
EPS Next 3Y5.68%
EPS Next 5Y4.7%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%2.31%
Revenue Next Year2.48%
Revenue Next 2Y2.67%
Revenue Next 3Y2.78%
Revenue Next 5Y3.5%
EBIT growth 1Y-11.39%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.69%
EBIT Next 3Y14.82%
EBIT Next 5Y9.76%
FCF growth 1Y-144.62%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-116.06%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%