3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
160.1 USD
-1.07 (-0.66%)
159.622 USD
-0.48 (-0.3%)
We assign a fundamental rating of 6 out of 10 to MMM. MMM was compared to 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 on the other hand it 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.
Of the past 5 years MMM 4 years were profitable.
In the past 5 years MMM always reported a positive cash flow from operatings.
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.
MMM's Return On Equity of 73.49% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
The Return On Invested Capital of MMM (14.75%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMM 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
With an excellent Profit Margin value of 13.70%, MMM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
MMM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.59%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 40.98%, MMM belongs to the best of the industry, outperforming 100.00% 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
MMM has an Altman-Z score of 4.31. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.31, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of MMM is 8.16, which is on the high side as it means it would take MMM, 8.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MMM (8.16) is better 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 | 4.31 |
ROIC/WACC1.86
WACC7.92%
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 better Current ratio (1.84) than 85.71% of its industry peers.
A Quick Ratio of 1.40 indicates that MMM should not have too much problems paying 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%.
Measured over the past years, MMM shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.72% on average per year.
Looking at the last year, MMM shows a small growth in Revenue. The Revenue has grown by 1.05% in the last 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
The Earnings Per Share is expected to grow by 4.80% on average over the next years.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y1.72%
EPS Next 2Y4.6%
EPS Next 3Y5.85%
EPS Next 5Y4.8%
Revenue Next Year2.79%
Revenue Next 2Y3.03%
Revenue Next 3Y3.01%
Revenue Next 5Y3.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 20.24, 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.
When comparing the Price/Earnings ratio of MMM to the average of the S&P500 Index (26.51), we can say MMM is valued slightly cheaper.
MMM is valuated rather expensively with a Price/Forward Earnings ratio of 18.34.
The rest of the industry has a similar Price/Forward Earnings ratio as MMM.
MMM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
Based on the Price/Free Cash Flow ratio, MMM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.08 | ||
| EV/EBITDA | 14.57 |
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)11.75
PEG (5Y)N/A
EPS Next 2Y4.6%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.79, MMM pays a bit more dividend than its industry peers.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 2Y4.6%
EPS Next 3Y5.85%
160.1
-1.07 (-0.66%)
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 Cap85.05B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target173.34 (8.27%)
Short Float %1.34%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend3.63
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)-0.38%
PT rev (3m)6.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.63%
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 | 20.24 | ||
| Fwd PE | 18.34 | ||
| P/S | 3.43 | ||
| P/FCF | 55.08 | ||
| P/OCF | 34.06 | ||
| P/B | 18.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.57 |
EPS(TTM)7.91
EY4.94%
EPS(NY)8.73
Fwd EY5.45%
FCF(TTM)2.91
FCFY1.82%
OCF(TTM)4.7
OCFY2.94%
SpS46.73
BVpS8.71
TBVpS-5.49
PEG (NY)11.75
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
WACC7.92%
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 2Y4.6%
EPS Next 3Y5.85%
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 2Y3.03%
Revenue Next 3Y3.01%
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.
What is the valuation status of 3M CO (MMM) stock?
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.
What is the valuation of 3M CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for 3M CO (MMM) is 20.24 and the Price/Book (PB) ratio is 18.38.
What is the expected EPS growth for 3M CO (MMM) stock?
The Earnings per Share (EPS) of 3M CO (MMM) is expected to grow by 1.72% in the next year.