3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
161.96 USD
+0.2 (+0.12%)
162.35 USD
+0.39 (+0.24%)
Overall MMM gets a fundamental rating of 6 out of 10. We evaluated MMM against 7 industry peers in the Industrial Conglomerates industry. Both the health and profitability get an excellent rating, making MMM a very profitable company, without any liquidiy or solvency issues. MMM has a valuation in line with the averages, but it does not seem to be growing.
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.
MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.04%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 73.49%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 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 belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of MMM has grown nicely.
The Operating Margin of MMM (20.59%) is better than 100.00% 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 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
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
MMM has an Altman-Z score of 4.33. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMM (4.33) is better than 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 has a better Debt to FCF ratio (8.16) than 85.71% of its industry peers.
MMM has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
MMM's Debt to Equity ratio of 2.56 is in line compared to the rest of the industry. MMM outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.86
WACC7.94%
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.
With an excellent Current ratio value of 1.84, MMM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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.
The Quick ratio of MMM (1.40) is better 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%.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
MMM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
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
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
Based on estimates for the next years, MMM will show a small growth in Revenue. The Revenue will grow by 3.73% on average per year.
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
The Price/Earnings ratio is 20.48, which indicates a rather expensive current valuation of MMM.
Compared to the rest of the industry, the Price/Earnings ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 71.43% of the companies listed in the same industry.
MMM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.39.
A Price/Forward Earnings ratio of 18.55 indicates a rather expensive valuation of MMM.
Based on the Price/Forward Earnings ratio, MMM is valued a bit cheaper than 71.43% of the companies in the same industry.
MMM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than 71.43% of the companies in the same industry.
MMM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MMM is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.72 | ||
| EV/EBITDA | 14.72 |
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)11.88
PEG (5Y)N/A
EPS Next 2Y4.61%
EPS Next 3Y5.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.64, MMM pays a bit more dividend than its industry peers.
MMM's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of MMM decreases each year by -8.82%.
MMM has been paying a dividend for at least 10 years, so it has 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%
161.96
+0.2 (+0.12%)
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 Cap86.04B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target174.6 (7.8%)
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 | 20.48 | ||
| Fwd PE | 18.55 | ||
| P/S | 3.47 | ||
| P/FCF | 55.72 | ||
| P/OCF | 34.46 | ||
| P/B | 18.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
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)11.88
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 | 4.33 |
F-Score5
WACC7.94%
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 4 / 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 20.48 and the Price/Book (PB) ratio is 18.59.
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%.