3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
161.11 USD
+5.23 (+3.36%)
Overall MMM gets a fundamental rating of 5 out of 10. We evaluated MMM against 7 industry peers in the Industrial Conglomerates industry. MMM has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
- In the past year MMM had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: MMM reported negative net income in multiple years.
- MMM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- MMM's Return On Assets of 9.04% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
- Looking at the Return On Equity, with a value of 73.49%, MMM belongs to the top 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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 Profit Margin of 13.70%. This is amongst the best in the industry. MMM outperforms 85.71% of its industry peers.
- 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.
- 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.
- 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 4.27 indicates that MMM is not in any danger for bankruptcy at the moment.
- MMM's Altman-Z score of 4.27 is amongst the best of the industry. MMM outperforms 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.
- 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 has a Debt to Equity ratio of 2.56. This is comparable 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 | 4.27 |
ROIC/WACC1.84
WACC8.03%
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.
- The Current ratio of MMM (1.84) is better 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.
- With a decent Quick ratio value of 1.40, MMM is doing good in 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
- MMM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
- The Earnings Per Share has been decreasing by -1.63% on average over the past years.
EPS 1Y (TTM)1%
EPS 3Y-7.24%
EPS 5Y-1.63%
EPS Q2Q%8.93%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.7%
3.2 Future
- Based on estimates for the next years, MMM will show a small growth in Earnings Per Share. The EPS will grow by 5.78% on average per year.
- The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y7.89%
EPS Next 2Y8.05%
EPS Next 3Y7.7%
EPS Next 5Y5.78%
Revenue Next Year2.99%
Revenue Next 2Y3%
Revenue Next 3Y3.57%
Revenue Next 5Y3.91%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.99 indicates a rather expensive valuation of MMM.
- Compared to the rest of the industry, the Price/Earnings ratio of MMM indicates a rather cheap valuation: MMM is cheaper than 100.00% 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 27.32.
- Based on the Price/Forward Earnings ratio of 18.53, the valuation of MMM can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, MMM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- MMM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- 71.43% of the companies in the same industry are more expensive than MMM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.43 | ||
| EV/EBITDA | 14.21 |
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)2.53
PEG (5Y)N/A
EPS Next 2Y8.05%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
- MMM has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 4.50, MMM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.86, MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
- 45.66% of the earnings are spent on dividend by MMM. This is a bit on the high side, but may be sustainable.
DP45.66%
EPS Next 2Y8.05%
EPS Next 3Y7.7%
NYSE:MMM (1/22/2026, 1:19:02 PM)
161.11
+5.23 (+3.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-20 2026-01-20/bmo
Earnings (Next)04-20 2026-04-20
Inst Owners74.31%
Inst Owner Change0.1%
Ins Owners0.03%
Ins Owner Change0.44%
Market Cap85.59B
Revenue(TTM)N/A
Net Income(TTM)3.40B
Analysts75.65
Price Target174.18 (8.11%)
Short Float %1.5%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-0.24%
PT rev (3m)7.4%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.53 | ||
| P/S | 3.45 | ||
| P/FCF | 55.43 | ||
| P/OCF | 34.28 | ||
| P/B | 18.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.21 |
EPS(TTM)8.06
EY5%
EPS(NY)8.7
Fwd EY5.4%
FCF(TTM)2.91
FCFY1.8%
OCF(TTM)4.7
OCFY2.92%
SpS46.73
BVpS8.71
TBVpS-5.49
PEG (NY)2.53
PEG (5Y)N/A
Graham Number39.75
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 | 4.27 |
F-Score5
WACC8.03%
ROIC/WACC1.84
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)1%
EPS 3Y-7.24%
EPS 5Y-1.63%
EPS Q2Q%8.93%
EPS Next Y7.89%
EPS Next 2Y8.05%
EPS Next 3Y7.7%
EPS Next 5Y5.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.7%
Revenue Next Year2.99%
Revenue Next 2Y3%
Revenue Next 3Y3.57%
Revenue Next 5Y3.91%
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 5 / 10 to MMM.
What is the valuation status of 3M CO (MMM) stock?
ChartMill assigns a valuation rating of 5 / 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 19.99 and the Price/Book (PB) ratio is 18.49.
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 7.89% in the next year.