3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
161.17 USD
-0.55 (-0.34%)
161.03 USD
-0.14 (-0.09%)
Overall MMM gets a fundamental rating of 6 out of 10. We evaluated MMM against 7 industry peers in the Industrial Conglomerates industry. MMM gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
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.
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.
With an excellent Return On Invested Capital value of 14.75%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MMM 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
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.
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.
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
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 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
MMM has an Altman-Z score of 4.32. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMM (4.32) is better than 100.00% of its industry peers.
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.
A Debt/Equity ratio of 2.56 is on the high side and indicates that MMM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.56, MMM is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.87
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, MMM belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, MMM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased by -9.29% in the last year.
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
The Earnings Per Share is expected to grow by 4.80% on average over the next years.
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 2Y4.6%
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
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 20.38, the valuation of MMM can be described as rather expensive.
Based on the Price/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/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
MMM is valuated rather expensively with a Price/Forward Earnings ratio of 18.46.
MMM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (23.40), we can say MMM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.45 | ||
| EV/EBITDA | 14.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMM does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)11.83
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.
MMM's Dividend Yield is a higher than the industry average which is at 4.79.
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%
161.17
-0.55 (-0.34%)
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 Cap85.62B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target173.34 (7.55%)
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-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)-0.38%
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 | 20.38 | ||
| Fwd PE | 18.46 | ||
| P/S | 3.45 | ||
| P/FCF | 55.45 | ||
| P/OCF | 34.29 | ||
| P/B | 18.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.7 |
EPS(TTM)7.91
EY4.91%
EPS(NY)8.73
Fwd EY5.42%
FCF(TTM)2.91
FCFY1.8%
OCF(TTM)4.7
OCFY2.92%
SpS46.73
BVpS8.71
TBVpS-5.49
PEG (NY)11.83
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 | 4.32 |
F-Score5
WACC7.9%
ROIC/WACC1.87
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.
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 20.38 and the Price/Book (PB) ratio is 18.5.
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%.