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3M CO (MMM) Stock Fundamental Analysis

NYSE:MMM - New York Stock Exchange, Inc. - US88579Y1010 - Common Stock - Currency: USD

156.59  -1.32 (-0.84%)

After market: 156.58 -0.01 (-0.01%)

Fundamental Rating

5

MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 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.


Dividend Valuation Growth Profitability Health

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8

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.
MMM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MMM had a positive operating cash flow.
MMM Yearly Net Income VS EBIT VS OCF VS FCFMMM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B

1.2 Ratios

With an excellent Return On Assets value of 10.92%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of MMM (97.69%) is better than 100.00% of its industry peers.
MMM's Return On Invested Capital of 13.70% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMM is above the industry average of 7.97%.
The 3 year average ROIC (11.12%) for MMM is below the current ROIC(13.70%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.92%
ROE 97.69%
ROIC 13.7%
ROA(3y)3.02%
ROA(5y)6.63%
ROE(3y)0.78%
ROE(5y)16.81%
ROIC(3y)11.12%
ROIC(5y)12.9%
MMM Yearly ROA, ROE, ROICMMM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100 -100

1.3 Margins

The Profit Margin of MMM (17.79%) is better than 100.00% of its industry peers.
MMM's Profit Margin has improved in the last couple of years.
MMM's Operating Margin of 20.46% is amongst the best of the industry. MMM outperforms 83.33% of its industry peers.
MMM's Operating Margin has been stable in the last couple of years.
The Gross Margin of MMM (41.21%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of MMM has declined.
Industry RankSector Rank
OM 20.46%
PM (TTM) 17.79%
GM 41.21%
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%
MMM Yearly Profit, Operating, Gross MarginsMMM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMM is creating some value.
Compared to 1 year ago, MMM has less shares outstanding
MMM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MMM has a worse debt to assets ratio.
MMM Yearly Shares OutstandingMMM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
MMM Yearly Total Debt VS Total AssetsMMM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 3.96 indicates that MMM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 2.76 is on the high side and indicates that MMM has dependencies on debt financing.
The Debt to Equity ratio of MMM (2.76) is better than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF N/A
Altman-Z 3.96
ROIC/WACC1.68
WACC8.16%
MMM Yearly LT Debt VS Equity VS FCFMMM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.66 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a Current ratio of 1.66. This is amongst the best in the industry. MMM outperforms 83.33% of its industry peers.
MMM has a Quick Ratio of 1.25. 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 Quick ratio value of 1.25, MMM belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.25
MMM Yearly Current Assets VS Current LiabilitesMMM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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3

3. Growth

3.1 Past

MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.67%.
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.
The Revenue for MMM has decreased by -20.06% in the past year. This is quite bad
The Revenue has been decreasing by -5.22% on average over the past years.
EPS 1Y (TTM)-22.67%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-21.34%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%

3.2 Future

The Earnings Per Share is expected to grow by 4.70% on average over the next years.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y3.5%

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.
MMM Yearly Revenue VS EstimatesMMM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
MMM Yearly EPS VS EstimatesMMM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 20.96, MMM is valued on the expensive side.
Based on the Price/Earnings ratio, MMM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MMM to the average of the S&P500 Index (27.19), we can say MMM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.55, the valuation of MMM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MMM is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.33. MMM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.96
Fwd PE 18.55
MMM Price Earnings VS Forward Price EarningsMMM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.54
MMM Per share dataMMM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

MMM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.85%
EPS Next 3Y5.18%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.86%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.68, MMM pays a bit more dividend than its industry peers.
MMM's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
Industry RankSector Rank
Dividend Yield 1.86%

5.2 History

The dividend of MMM decreases each year by -8.81%.
MMM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.81%
Div Incr Years0
Div Non Decr Years0
MMM Yearly Dividends per shareMMM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

35.38% of the earnings are spent on dividend by MMM. This is a low number and sustainable payout ratio.
DP35.38%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
MMM Yearly Income VS Free CF VS DividendMMM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B -6B
MMM Dividend Payout.MMM Dividend Payout, showing the Payout Ratio.MMM Dividend Payout.PayoutRetained Earnings

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3M CO

NYSE:MMM (7/15/2025, 7:00:00 PM)

After market: 156.58 -0.01 (-0.01%)

156.59

-1.32 (-0.84%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)04-22 2025-04-22/bmo
Earnings (Next)07-18 2025-07-18/bmo
Inst Owners73.84%
Inst Owner Change-0.01%
Ins Owners0.03%
Ins Owner Change4.95%
Market Cap84.27B
Analysts75.65
Price Target155.24 (-0.86%)
Short Float %1.97%
Short Ratio3.5
Dividend
Industry RankSector Rank
Dividend Yield 1.86%
Yearly Dividend3.63
Dividend Growth(5Y)-8.81%
DP35.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-23 2025-05-23 (0.73)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.75%
Min EPS beat(2)0.09%
Max EPS beat(2)5.42%
EPS beat(4)4
Avg EPS beat(4)5.49%
Min EPS beat(4)0.09%
Max EPS beat(4)13.52%
EPS beat(8)8
Avg EPS beat(8)9.58%
EPS beat(12)11
Avg EPS beat(12)8.28%
EPS beat(16)15
Avg EPS beat(16)9.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.16%
Revenue beat(12)5
Avg Revenue beat(12)0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.49%
PT rev (1m)0%
PT rev (3m)-2.37%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.6%
Valuation
Industry RankSector Rank
PE 20.96
Fwd PE 18.55
P/S 3.44
P/FCF N/A
P/OCF 86.61
P/B 18.88
P/tB N/A
EV/EBITDA 14.54
EPS(TTM)7.47
EY4.77%
EPS(NY)8.44
Fwd EY5.39%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)1.81
OCFY1.15%
SpS45.55
BVpS8.29
TBVpS-5.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.92%
ROE 97.69%
ROCE 16.45%
ROIC 13.7%
ROICexc 17.8%
ROICexgc 26.19%
OM 20.46%
PM (TTM) 17.79%
GM 41.21%
FCFM N/A
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%
ROICexcg growth 3Y-10.19%
ROICexcg 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-Score7
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF N/A
Debt/EBITDA 1.97
Cap/Depr 85.2%
Cap/Sales 4.25%
Interest Coverage 250
Cash Conversion 15.6%
Profit Quality N/A
Current Ratio 1.66
Quick Ratio 1.25
Altman-Z 3.96
F-Score7
WACC8.16%
ROIC/WACC1.68
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)-22.67%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-21.34%
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y3.5%
EBIT growth 1Y-12.49%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year31.55%
EBIT Next 3Y14.58%
EBIT Next 5Y9.76%
FCF growth 1Y-101.7%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-83.38%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%