3M CO (MMM) Stock Fundamental Analysis
NYSE:MMM - New York Stock Exchange, Inc. - US88579Y1010 - Common Stock
MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Industrial Conglomerates industry. MMM has an excellent profitability rating, but there are some minor concerns on its financial health. MMM is valued correctly, 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.
In multiple years MMM reported negative net income over the last 5 years.
MMM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MMM has a Return On Assets of 10.74%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
MMM's Return On Equity of 94.57% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
MMM has a Return On Invested Capital of 15.22%. This is amongst the best in the industry. MMM outperforms 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 9.51%.
The 3 year average ROIC (14.01%) for MMM is below the current ROIC(15.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.74% | ||
| ROE | 94.57% | ||
| ROIC | 15.22% |
ROA(3y)3.73%
ROA(5y)6.56%
ROE(3y)-22.31%
ROE(5y)4.06%
ROIC(3y)14.01%
ROIC(5y)14.74%
1.3 Margins
MMM has a Profit Margin of 16.52%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
MMM's Operating Margin of 19.82% is amongst the best of the industry. MMM outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of MMM has declined.
MMM has a Gross Margin of 42.34%. This is amongst the best in the industry. MMM outperforms 87.50% of its industry peers.
MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.82% | ||
| PM (TTM) | 16.52% | ||
| GM | 42.34% |
OM growth 3Y-6.55%
OM growth 5Y-3.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.43%
GM growth 5Y-2.3%
2. Health
2.1 Basic Checks
MMM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MMM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.79 indicates that MMM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.79, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM has a debt to FCF ratio of 17.85. This is a negative value and a sign of low solvency as MMM would need 17.85 years to pay back of all of its debts.
MMM's Debt to FCF ratio of 17.85 is fine compared to the rest of the industry. MMM outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 2.83 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a Debt to Equity ratio of 2.83. This is comparable to the rest of the industry: MMM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 17.85 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.86
WACC8.17%
2.3 Liquidity
MMM has a Current Ratio of 1.43. 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 (1.43) than 75.00% of its industry peers.
A Quick Ratio of 1.08 indicates that MMM should not have too much problems paying its short term obligations.
MMM's Quick ratio of 1.08 is fine compared to the rest of the industry. MMM outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased strongly by -13.64% in the last year.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
EPS 1Y (TTM)-13.64%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-30.58%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-24.5%
3.2 Future
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y-0.16%
EPS Next 2Y4.36%
EPS Next 3Y6.3%
EPS Next 5Y6.36%
Revenue Next Year1.7%
Revenue Next 2Y2.59%
Revenue Next 3Y4.34%
Revenue Next 5Y5.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.69, which indicates a rather expensive current valuation of MMM.
Based on the Price/Earnings ratio, MMM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.19. MMM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.72, MMM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MMM is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
MMM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than 62.50% of the companies in the same industry.
MMM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.88 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
The decent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.36%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.99%.
MMM's Dividend Yield is a higher than the industry average which is at 5.52.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of MMM has a limited annual growth rate of 1.98%.
MMM has paid a dividend for at least 10 years, which is a reliable track record.
MMM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.98%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
MMM pays out 55.40% of its income as dividend. This is a bit on the high side, but may be sustainable.
MMM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.4%
EPS Next 2Y4.36%
EPS Next 3Y6.3%
3M CO
NYSE:MMM (1/22/2025, 8:04:00 PM)
After market: 148.8 -0.32 (-0.21%)149.12
+2.23 (+1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner Change-0.35%
Ins Owners0.06%
Ins Owner Change-0.4%
Market Cap81.20B
Analysts74.78
Price Target151.17 (1.37%)
Short Float %1.2%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend6.01
Dividend Growth(5Y)1.98%
DP55.4%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.23%
Min EPS beat(2)2.93%
Max EPS beat(2)13.52%
EPS beat(4)4
Avg EPS beat(4)8.23%
Min EPS beat(4)2.93%
Max EPS beat(4)13.52%
EPS beat(8)7
Avg EPS beat(8)11.23%
EPS beat(12)11
Avg EPS beat(12)10.09%
EPS beat(16)15
Avg EPS beat(16)10.8%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)1.4%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)1.4%
Revenue beat(8)4
Avg Revenue beat(8)0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.85%
PT rev (1m)0.25%
PT rev (3m)10.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 18.72 | ||
| P/S | 3.06 | ||
| P/FCF | 109.88 | ||
| P/OCF | 40.87 | ||
| P/B | 17.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.1 |
EPS(TTM)7.98
EY5.35%
EPS(NY)7.97
Fwd EY5.34%
FCF(TTM)1.36
FCFY0.91%
OCF(TTM)3.65
OCFY2.45%
SpS48.81
BVpS8.52
TBVpS-5.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.74% | ||
| ROE | 94.57% | ||
| ROCE | 17.87% | ||
| ROIC | 15.22% | ||
| ROICexc | 19.85% | ||
| ROICexgc | 29.11% | ||
| OM | 19.82% | ||
| PM (TTM) | 16.52% | ||
| GM | 42.34% | ||
| FCFM | 2.78% |
ROA(3y)3.73%
ROA(5y)6.56%
ROE(3y)-22.31%
ROE(5y)4.06%
ROIC(3y)14.01%
ROIC(5y)14.74%
ROICexc(3y)16.16%
ROICexc(5y)16.77%
ROICexgc(3y)36.08%
ROICexgc(5y)38.56%
ROCE(3y)15.76%
ROCE(5y)16.55%
ROICexcg growth 3Y-4.32%
ROICexcg growth 5Y-3.43%
ROICexc growth 3Y-2.88%
ROICexc growth 5Y-6.26%
OM growth 3Y-6.55%
OM growth 5Y-3.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.43%
GM growth 5Y-2.3%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 17.85 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 79.09% | ||
| Cap/Sales | 4.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.02% | ||
| Profit Quality | 16.83% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.79 |
F-Score5
WACC8.17%
ROIC/WACC1.86
Cap/Depr(3y)86.84%
Cap/Depr(5y)89.14%
Cap/Sales(3y)4.86%
Cap/Sales(5y)4.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.64%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-30.58%
EPS Next Y-0.16%
EPS Next 2Y4.36%
EPS Next 3Y6.3%
EPS Next 5Y6.36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-24.5%
Revenue Next Year1.7%
Revenue Next 2Y2.59%
Revenue Next 3Y4.34%
Revenue Next 5Y5.01%
EBIT growth 1Y-1%
EBIT growth 3Y-6.07%
EBIT growth 5Y-3.21%
EBIT Next Year1.9%
EBIT Next 3Y4.77%
EBIT Next 5Y4.96%
FCF growth 1Y-80.93%
FCF growth 3Y-8.5%
FCF growth 5Y0.82%
OCF growth 1Y-64.98%
OCF growth 3Y-6.27%
OCF growth 5Y0.74%