3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
162.08 USD
+1.74 (+1.09%)
162.08 USD
0 (0%)
Overall MMM gets a fundamental rating of 6 out of 10. We evaluated MMM against 7 industry peers in the Industrial Conglomerates industry. MMM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MMM has a valuation in line with the averages, but 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.
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
The Return On Assets of MMM (9.04%) is better than 100.00% of its industry peers.
MMM's Return On Equity of 73.49% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
MMM has a Return On Invested Capital of 14.75%. This is amongst the best in the industry. MMM outperforms 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 7.93%.
The last Return On Invested Capital (14.75%) for MMM is above the 3 year average (11.12%), which is a sign of increasing profitability.
| 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
MMM has a better Profit Margin (13.70%) than 85.71% of its industry peers.
MMM's Profit Margin has improved in the last couple of years.
MMM has a better Operating Margin (20.59%) than 100.00% of its industry peers.
MMM's Operating Margin has been stable in the last couple of years.
MMM has a Gross Margin of 40.98%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
MMM's Gross Margin has declined in the last couple of years.
| 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.
MMM has less shares outstanding than it did 1 year ago.
MMM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MMM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.31 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM's Altman-Z score of 4.31 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.
MMM's Debt to FCF ratio of 8.16 is amongst the best of the industry. MMM outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 2.56 is on the high side and indicates that MMM has dependencies on debt financing.
The Debt to Equity ratio of MMM (2.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.86
WACC7.93%
2.3 Liquidity
MMM has a Current Ratio of 1.84. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
MMM has a better Current ratio (1.84) than 85.71% of its industry peers.
MMM has a Quick Ratio of 1.40. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
MMM has a better Quick ratio (1.40) than 71.43% 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.
Looking at the last year, MMM shows a small growth in Revenue. The Revenue has grown by 1.05% in the last year.
MMM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.22% yearly.
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
The Earnings Per Share is expected to grow by 4.80% on average over the next years.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y1.72%
EPS Next 2Y4.61%
EPS Next 3Y5.87%
EPS Next 5Y4.8%
Revenue Next Year2.79%
Revenue Next 2Y3.02%
Revenue Next 3Y3%
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
Based on the Price/Earnings ratio of 20.49, the valuation of MMM can be described as rather expensive.
71.43% of the companies in the same industry are more expensive than MMM, based on the Price/Earnings ratio.
MMM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.56 indicates a rather expensive valuation of MMM.
Based on the Price/Forward Earnings ratio, MMM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 71.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MMM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.77 | ||
| EV/EBITDA | 14.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MMM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.89
PEG (5Y)N/A
EPS Next 2Y4.61%
EPS Next 3Y5.87%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 4.64, MMM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of MMM decreases each year by -8.82%.
MMM has paid a dividend for at least 10 years, which is a reliable track record.
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 2Y4.61%
EPS Next 3Y5.87%
162.08
+1.74 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners74.26%
Inst Owner Change-4.93%
Ins Owners0.03%
Ins Owner Change0.44%
Market Cap86.10B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price TargetN/A
Short Float %1.35%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend3.63
Dividend Growth(5Y)-8.82%
DP45.66%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0.9%
PT rev (3m)7.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.56 | ||
| P/S | 3.47 | ||
| P/FCF | 55.77 | ||
| P/OCF | 34.48 | ||
| P/B | 18.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)7.91
EY4.88%
EPS(NY)8.73
Fwd EY5.39%
FCF(TTM)2.91
FCFY1.79%
OCF(TTM)4.7
OCFY2.9%
SpS46.73
BVpS8.71
TBVpS-5.49
PEG (NY)11.89
PEG (5Y)N/A
Graham Number39.38
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 | 4.31 |
F-Score5
WACC7.93%
ROIC/WACC1.86
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 Y1.72%
EPS Next 2Y4.61%
EPS Next 3Y5.87%
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 Year2.79%
Revenue Next 2Y3.02%
Revenue Next 3Y3%
Revenue Next 5Y3.73%
EBIT growth 1Y3.92%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year35.75%
EBIT Next 3Y14.67%
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 FAQ
What is the ChartMill fundamental rating of 3M CO (MMM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MMM.
Can you provide the valuation status for 3M CO?
ChartMill assigns a valuation rating of 5 / 10 to 3M CO (MMM). This can be considered as Fairly Valued.
Can you provide the profitability details for 3M CO?
3M CO (MMM) 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) is 20.49 and the Price/Book (PB) ratio is 18.6.
Can you provide the dividend sustainability for MMM stock?
The dividend rating of 3M CO (MMM) is 4 / 10 and the dividend payout ratio is 45.66%.