3M CO (MMM) Stock Fundamental Analysis
USA - NYSE:MMM - US88579Y1010 - Common Stock
165.79 USD
+0.4 (+0.24%)
165.79 USD
0 (0%)
Taking everything into account, MMM scores 6 out of 10 in our fundamental rating. 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MMM had positive earnings in the past year.
In the past year MMM had a positive cash flow from operations.
Of the past 5 years MMM 4 years were profitable.
MMM had a positive operating cash flow in each 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.
MMM has a Return On Equity of 73.49%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
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 last Return On Invested Capital (14.75%) for MMM is above the 3 year average (11.12%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 13.70%, MMM belongs to the best 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.
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
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.
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 4.36 indicates that MMM is not in any danger for bankruptcy at the moment.
The Altman-Z score of MMM (4.36) is better than 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.
The Debt to FCF ratio of MMM (8.16) is better 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's Debt to Equity ratio of 2.56 is in line compared 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 | 4.36 |
ROIC/WACC1.86
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MMM should not have too much problems paying its short term obligations.
MMM's Current ratio of 1.84 is amongst the best of the industry. MMM outperforms 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.
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
MMM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.29%.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
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
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y1.8%
EPS Next 2Y4.58%
EPS Next 3Y5.84%
EPS Next 5Y4.8%
Revenue Next Year2.8%
Revenue Next 2Y3.02%
Revenue Next 3Y2.96%
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.
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
Based on the Price/Earnings ratio of 20.96, the valuation of MMM can be described as rather expensive.
MMM's Price/Earnings ratio is a bit cheaper when compared to the industry. MMM is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. MMM is around the same levels.
With a Price/Forward Earnings ratio of 18.99, MMM is valued on the expensive side.
MMM's Price/Forward Earnings ratio is in line with the industry average.
MMM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
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 | 57.19 | ||
| EV/EBITDA | 15.05 |
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)11.67
PEG (5Y)N/A
EPS Next 2Y4.58%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.81, MMM pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, MMM is paying slightly less dividend.
| 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 2Y4.58%
EPS Next 3Y5.84%
165.79
+0.4 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner Change-4.73%
Ins Owners0.03%
Ins Owner Change0.69%
Market Cap88.30B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target173.04 (4.37%)
Short Float %1.28%
Short Ratio2.24
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-Date
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)6.7%
PT rev (3m)6.74%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)1.7%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 18.99 | ||
| P/S | 3.56 | ||
| P/FCF | 57.19 | ||
| P/OCF | 35.36 | ||
| P/B | 19.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.05 |
EPS(TTM)7.91
EY4.77%
EPS(NY)8.73
Fwd EY5.26%
FCF(TTM)2.9
FCFY1.75%
OCF(TTM)4.69
OCFY2.83%
SpS46.61
BVpS8.69
TBVpS-5.47
PEG (NY)11.67
PEG (5Y)N/A
Graham Number39.32
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 | 4.36 |
F-Score5
WACC7.94%
ROIC/WACC1.86
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 Y1.8%
EPS Next 2Y4.58%
EPS Next 3Y5.84%
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 Year2.8%
Revenue Next 2Y3.02%
Revenue Next 3Y2.96%
Revenue Next 5Y3.73%
EBIT growth 1Y3.92%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.71%
EBIT Next 3Y14.99%
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.
Can you provide the valuation status for 3M CO?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the PE and PB ratios for MMM stock?
The Price/Earnings (PE) ratio for 3M CO (MMM) is 20.96 and the Price/Book (PB) ratio is 19.08.
Can you provide the dividend sustainability for MMM stock?
The dividend rating of 3M CO (MMM) is 3 / 10 and the dividend payout ratio is 45.66%.