3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
167.8 USD
-3.3 (-1.93%)
167.45 USD
-0.35 (-0.21%)
We assign a fundamental rating of 6 out of 10 to MMM. MMM was compared to 7 industry peers in the Industrial Conglomerates industry. MMM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
- MMM had positive earnings in 4 of the past 5 years.
- In the past 5 years MMM always reported a positive cash flow from operatings.
1.2 Ratios
- MMM has a Return On Assets of 9.04%. This is amongst the best in 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's Return On Invested Capital of 14.75% is amongst the best of 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
- Looking at the Profit Margin, with a value of 13.70%, MMM belongs to the top 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.
- MMM has a better Operating Margin (20.59%) than 100.00% of its industry peers.
- MMM's Operating Margin has been stable in the last couple of years.
- The Gross Margin of MMM (40.98%) is better than 100.00% of its industry peers.
- 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.
- Compared to 5 years ago, MMM has less shares outstanding
- Compared to 1 year ago, MMM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.38 indicates that MMM is not in any danger for bankruptcy at the moment.
- MMM's Altman-Z score of 4.38 is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
- MMM has a debt to FCF ratio of 8.16. This is a slightly negative value and a sign of low solvency as MMM would need 8.16 years to pay back of all of its debts.
- MMM has a better Debt to FCF ratio (8.16) 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.
- 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 | 4.38 |
ROIC/WACC1.83
WACC8.04%
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.
- The Quick ratio of MMM (1.40) is better than 71.43% of its industry peers.
| 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
- Based on estimates for the next years, MMM will show a small growth in Earnings Per Share. The EPS will grow by 4.80% on average per year.
- 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 Year3.01%
Revenue Next 2Y3%
Revenue Next 3Y3%
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
- A Price/Earnings ratio of 21.21 indicates a rather expensive valuation of MMM.
- 85.71% of the companies in the same industry are more expensive than MMM, based on the Price/Earnings ratio.
- MMM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 19.22, MMM is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, MMM is valued a bit cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. MMM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
- MMM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMM is cheaper than 71.43% of the companies in the same industry.
- 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 | 57.73 | ||
| EV/EBITDA | 15.22 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- MMM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)12.31
PEG (5Y)N/A
EPS Next 2Y4.6%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.71%, MMM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.50, MMM pays a bit more dividend than its industry peers.
- MMM's Dividend Yield is comparable with the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
- The dividend of MMM decreases each year by -8.82%.
- MMM has been paying a dividend for at least 10 years, so it has 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%
167.8
-3.3 (-1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-20 2026-01-20/bmo
Inst Owners74.31%
Inst Owner Change0.1%
Ins Owners0.03%
Ins Owner Change0.44%
Market Cap89.14B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.65
Price Target174.18 (3.8%)
Short Float %1.34%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 | 21.21 | ||
| Fwd PE | 19.22 | ||
| P/S | 3.59 | ||
| P/FCF | 57.73 | ||
| P/OCF | 35.7 | ||
| P/B | 19.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)7.91
EY4.71%
EPS(NY)8.73
Fwd EY5.2%
FCF(TTM)2.91
FCFY1.73%
OCF(TTM)4.7
OCFY2.8%
SpS46.73
BVpS8.71
TBVpS-5.49
PEG (NY)12.31
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 | 4.38 |
F-Score5
WACC8.04%
ROIC/WACC1.83
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 Year3.01%
Revenue Next 2Y3%
Revenue Next 3Y3%
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 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 21.21 and the Price/Book (PB) ratio is 19.26.
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.