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%)
Overall MMM gets a fundamental rating of 6 out of 10. We evaluated MMM against 7 industry peers in the Industrial Conglomerates industry. MMM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MMM is valued correctly, 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.
- 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.
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.
- The Return On Equity of MMM (73.49%) is better than 100.00% of its industry peers.
- 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.
- MMM had an Average Return On Invested Capital over the past 3 years of 11.12%. This 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
- The Profit Margin of MMM (13.70%) is better than 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.
- 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 40.98%, MMM belongs to the best 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MMM is creating value.
- Compared to 1 year ago, MMM has less shares outstanding
- The number of shares outstanding for MMM has been reduced compared to 5 years ago.
- MMM has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.38 indicates that MMM is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.38, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 8.16, MMM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- MMM has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.56, MMM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.38 |
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.
- MMM has a better Current ratio (1.84) than 85.71% of its industry peers.
- MMM has a Quick Ratio of 1.40. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
- MMM has a Quick ratio of 1.40. This is in the better half of the industry: MMM outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- MMM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.29%.
- 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.
- MMM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.22% yearly.
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.
- MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
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
- 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.
- The Revenue 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
- Based on the Price/Earnings ratio of 21.21, the valuation of MMM can be described as rather expensive.
- MMM's Price/Earnings ratio is rather cheap when compared to the industry. MMM is cheaper than 85.71% of the companies in the same industry.
- MMM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.22 indicates a rather expensive valuation of MMM.
- 71.43% of the companies in the same industry are more expensive than MMM, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
- 71.43% of the companies in the same industry are more expensive than MMM, based on the Enterprise Value to EBITDA ratio.
- 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 | 57.73 | ||
| EV/EBITDA | 15.22 |
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.
- 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.
- MMM's Dividend Yield is a higher than the industry average which is at 4.50.
- MMM's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| 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
- 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 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 Change0.07%
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.