3M CO (MMM.DE) Stock Fundamental Analysis
Europe - FRA:MMM - US88579Y1010 - Common Stock
144.44 EUR
-2.44 (-1.66%)
MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 17 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
MMM had positive earnings in the past year.
MMM had a positive operating cash flow in the past year.
MMM had positive earnings in 4 of the past 5 years.
MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MMM has a Return On Assets of 9.04%. This is amongst the best in the industry. MMM outperforms 88.24% of its industry peers.
MMM has a Return On Equity of 73.49%. This is amongst the best in the industry. MMM outperforms 94.12% of its industry peers.
MMM has a better Return On Invested Capital (14.75%) than 100.00% 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 6.93%.
The 3 year average ROIC (11.12%) for MMM is below the current ROIC(14.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 73.49% | ||
| ROIC | 14.75% |
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 13.70%, MMM is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
In the last couple of years the Profit Margin of MMM has grown nicely.
MMM has a better Operating Margin (20.59%) than 94.12% of its industry peers.
MMM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 40.98%, MMM is in line with its industry, outperforming 47.06% of the companies in the same industry.
In the last couple of years the Gross Margin of MMM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.59% | ||
| PM (TTM) | 13.7% | ||
| GM | 40.98% |
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 MMM is creating value.
The number of shares outstanding for MMM has been reduced compared to 1 year ago.
The number of shares outstanding for MMM has been reduced compared to 5 years ago.
Compared to 1 year ago, MMM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.42 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM's Altman-Z score of 4.42 is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
MMM has a debt to FCF ratio of 8.16. This is a slightly negative value and a sign of low solvency as MMM would need 8.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.16, MMM is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that MMM has dependencies on debt financing.
MMM's Debt to Equity ratio of 2.56 is on the low side compared to the rest of the industry. MMM is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.88
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a Current ratio of 1.84. This is amongst the best in the industry. MMM outperforms 82.35% of its industry peers.
A Quick Ratio of 1.40 indicates that MMM should not have too much problems paying its short term obligations.
The Quick ratio of MMM (1.40) is better than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
MMM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.29%.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
The Revenue has been growing slightly by 1.05% in the past year.
Measured over the past years, MMM shows a decrease in Revenue. The Revenue has been decreasing by -5.22% on average per year.
EPS 1Y (TTM)-9.29%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%10.61%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%4.12%
3.2 Future
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y1.8%
EPS Next 2Y4.58%
EPS Next 3Y5.84%
EPS Next 5Y4.8%
Revenue Next Year2.8%
Revenue Next 2Y3.02%
Revenue Next 3Y2.96%
Revenue Next 5Y3.73%
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
With a Price/Earnings ratio of 21.21, MMM is valued on the expensive side.
MMM's Price/Earnings is on the same level as the industry average.
MMM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 19.23, the valuation of MMM can be described as rather expensive.
MMM's Price/Forward Earnings ratio is in line with the industry average.
MMM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
The rest of the industry has a similar Price/Free Cash Flow ratio as MMM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.89 | ||
| EV/EBITDA | 15.49 |
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 excellent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)11.81
PEG (5Y)N/A
EPS Next 2Y4.58%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
MMM's Dividend Yield is slightly below the industry average, which is at 3.55.
MMM's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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
MMM pays out 45.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.66%
EPS Next 2Y4.58%
EPS Next 3Y5.84%
FRA:MMM (11/14/2025, 7:00:00 PM)
144.44
-2.44 (-1.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap76.93B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target148.18 (2.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend3.14
Dividend Growth(5Y)-8.82%
DP45.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.34%
Min EPS beat(2)4.49%
Max EPS beat(2)6.18%
EPS beat(4)4
Avg EPS beat(4)4.05%
Min EPS beat(4)0.09%
Max EPS beat(4)6.18%
EPS beat(8)8
Avg EPS beat(8)6.14%
EPS beat(12)11
Avg EPS beat(12)8.83%
EPS beat(16)15
Avg EPS beat(16)8.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)0.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)4
Avg Revenue beat(12)-10.1%
Revenue beat(16)5
Avg Revenue beat(16)-7.71%
PT rev (1m)6.56%
PT rev (3m)9.23%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)1.7%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 19.23 | ||
| P/S | 3.6 | ||
| P/FCF | 57.89 | ||
| P/OCF | 35.8 | ||
| P/B | 19.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.49 |
EPS(TTM)6.81
EY4.71%
EPS(NY)7.51
Fwd EY5.2%
FCF(TTM)2.49
FCFY1.73%
OCF(TTM)4.03
OCFY2.79%
SpS40.11
BVpS7.48
TBVpS-4.71
PEG (NY)11.81
PEG (5Y)N/A
Graham Number33.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 73.49% | ||
| ROCE | 17.7% | ||
| ROIC | 14.75% | ||
| ROICexc | 17.98% | ||
| ROICexgc | 26.38% | ||
| OM | 20.59% | ||
| PM (TTM) | 13.7% | ||
| GM | 40.98% | ||
| FCFM | 6.22% |
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%
ROICexgc growth 3Y-10.19%
ROICexgc 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 79.42% | ||
| Cap/Sales | 3.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.56% | ||
| Profit Quality | 45.4% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.42 |
F-Score5
WACC7.84%
ROIC/WACC1.88
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)-9.29%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%10.61%
EPS Next Y1.8%
EPS Next 2Y4.58%
EPS Next 3Y5.84%
EPS Next 5Y4.8%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%4.12%
Revenue Next Year2.8%
Revenue Next 2Y3.02%
Revenue Next 3Y2.96%
Revenue Next 5Y3.73%
EBIT growth 1Y3.92%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.71%
EBIT Next 3Y14.99%
EBIT Next 5Y10.56%
FCF growth 1Y-68.18%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-62.26%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%
3M CO / MMM.DE FAQ
What is the ChartMill fundamental rating of 3M CO (MMM.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MMM.DE.
Can you provide the valuation status for 3M CO?
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 8 / 10.
Can you provide the PE and PB ratios for MMM stock?
The Price/Earnings (PE) ratio for 3M CO (MMM.DE) is 21.21 and the Price/Book (PB) ratio is 19.31.
Can you provide the dividend sustainability for MMM stock?
The dividend rating of 3M CO (MMM.DE) is 2 / 10 and the dividend payout ratio is 45.66%.