3M CO (MMM) Stock Fundamental Analysis
NYSE:MMM - New York Stock Exchange, Inc. - US88579Y1010 - Common Stock - Currency: USD
Overall MMM gets a fundamental rating of 6 out of 10. We evaluated MMM against 8 industry peers in the Industrial Conglomerates industry. While MMM belongs to the best of the industry regarding profitability, 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
MMM had positive earnings in the past year.
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
MMM's Return On Assets of 10.47% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 108.62%, 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 14.59%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MMM is in line with the industry average of 9.46%.
The 3 year average ROIC (11.12%) for MMM is below the current ROIC(14.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 108.62% | ||
| ROIC | 14.59% |
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 16.98%, 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 Profit Margin of MMM has grown nicely.
Looking at the Operating Margin, with a value of 20.38%, MMM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
With an excellent Gross Margin value of 41.33%, MMM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.38% | ||
| PM (TTM) | 16.98% | ||
| GM | 41.33% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MMM is creating value.
MMM has less shares outstanding than it did 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 3.81 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM has a Altman-Z score of 3.81. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
The Debt to FCF ratio of MMM is 20.45, which is on the high side as it means it would take MMM, 20.45 years of fcf income to pay off all of its debts.
MMM's Debt to FCF ratio of 20.45 is fine compared to the rest of the industry. MMM outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a Debt to Equity ratio (2.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 20.45 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.8
WACC8.09%
2.3 Liquidity
MMM has a Current Ratio of 1.41. 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 Current ratio value of 1.41, MMM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, MMM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.64%.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
MMM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.80%.
MMM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.22% yearly.
EPS 1Y (TTM)-13.64%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-30.58%
Revenue 1Y (TTM)-24.8%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-24.5%
3.2 Future
The Earnings Per Share is expected to grow by 5.41% 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 4.21% on average per year.
EPS Next Y-1.17%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
EPS Next 5Y5.41%
Revenue Next Year1.01%
Revenue Next 2Y2.07%
Revenue Next 3Y2.81%
Revenue Next 5Y4.21%
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
A Price/Earnings ratio of 18.17 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 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MMM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.38, MMM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMM indicates a rather cheap valuation: MMM is cheaper than 87.50% of the companies listed in the same industry.
MMM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 18.38 |
4.2 Price Multiples
MMM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMM is cheaper than 62.50% of the companies in the same industry.
MMM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.37 | ||
| EV/EBITDA | 13.2 |
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 2Y3.29%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.96%.
Compared to an average industry Dividend Yield of 5.34, MMM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of MMM decreases each year by -8.81%.
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)-8.81%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
MMM pays out 47.50% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.5%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
144.98
-4.1 (-2.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners69.27%
Inst Owner Change1.08%
Ins Owners0.04%
Ins Owner Change4.66%
Market Cap78.71B
Analysts75.65
Price Target157.71 (8.78%)
Short Float %1.34%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend3.63
Dividend Growth(5Y)-8.81%
DP47.5%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.51%
Min EPS beat(2)0.09%
Max EPS beat(2)2.93%
EPS beat(4)4
Avg EPS beat(4)7.32%
Min EPS beat(4)0.09%
Max EPS beat(4)13.52%
EPS beat(8)8
Avg EPS beat(8)11.8%
EPS beat(12)11
Avg EPS beat(12)8.96%
EPS beat(16)15
Avg EPS beat(16)10.21%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)-0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)1.4%
Revenue beat(8)4
Avg Revenue beat(8)0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.3%
Revenue beat(16)8
Avg Revenue beat(16)0.74%
PT rev (1m)3.27%
PT rev (3m)8.45%
EPS NQ rev (1m)-9.59%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-1.6%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 18.38 | ||
| P/S | 3.2 | ||
| P/FCF | 123.37 | ||
| P/OCF | 43.27 | ||
| P/B | 20.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.2 |
EPS(TTM)7.98
EY5.5%
EPS(NY)7.89
Fwd EY5.44%
FCF(TTM)1.18
FCFY0.81%
OCF(TTM)3.35
OCFY2.31%
SpS45.27
BVpS7.08
TBVpS-6.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.47% | ||
| ROE | 108.62% | ||
| ROCE | 17.51% | ||
| ROIC | 14.59% | ||
| ROICexc | 19.98% | ||
| ROICexgc | 31.16% | ||
| OM | 20.38% | ||
| PM (TTM) | 16.98% | ||
| GM | 41.33% | ||
| FCFM | 2.6% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 20.45 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 86.65% | ||
| Cap/Sales | 4.81% | ||
| Interest Coverage | 9.92 | ||
| Cash Conversion | 28.55% | ||
| Profit Quality | 15.29% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.81 |
F-Score5
WACC8.09%
ROIC/WACC1.8
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)-13.64%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-30.58%
EPS Next Y-1.17%
EPS Next 2Y3.29%
EPS Next 3Y5.47%
EPS Next 5Y5.41%
Revenue 1Y (TTM)-24.8%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-24.5%
Revenue Next Year1.01%
Revenue Next 2Y2.07%
Revenue Next 3Y2.81%
Revenue Next 5Y4.21%
EBIT growth 1Y-13.23%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year35.69%
EBIT Next 3Y15.66%
EBIT Next 5YN/A
FCF growth 1Y-87.4%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-72.77%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%