3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
160.1 USD
-1.07 (-0.66%)
159.622 USD
-0.48 (-0.3%)
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 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
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.
MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MMM (9.04%) is better than 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 better Return On Invested Capital (14.75%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
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.
MMM's Gross Margin has declined in the last couple of years.
| 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.
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
The debt/assets ratio for MMM is higher compared to a year ago.
2.2 Solvency
MMM has an Altman-Z score of 4.31. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.31, MMM belongs to the top 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.
MMM has a Debt to FCF ratio of 8.16. This is amongst the best in the industry. MMM outperforms 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 (2.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.86
WACC7.95%
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.
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.
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.
Looking at the Quick ratio, with a value of 1.40, MMM is in the better half of 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 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.
MMM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
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.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y1.72%
EPS Next 2Y4.6%
EPS Next 3Y5.85%
EPS Next 5Y4.8%
Revenue Next Year2.79%
Revenue Next 2Y3.03%
Revenue Next 3Y3.01%
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
With a Price/Earnings ratio of 20.24, MMM is valued on the expensive side.
71.43% of the companies in the same industry are more expensive than MMM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, MMM is valued a bit cheaper.
MMM is valuated rather expensively with a Price/Forward Earnings ratio of 18.34.
MMM's Price/Forward Earnings ratio is in line with the industry average.
MMM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
MMM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MMM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.08 | ||
| EV/EBITDA | 14.57 |
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)11.75
PEG (5Y)N/A
EPS Next 2Y4.6%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.82%.
Compared to an average industry Dividend Yield of 4.79, MMM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 2Y4.6%
EPS Next 3Y5.85%
160.1
-1.07 (-0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners74.26%
Inst Owner Change-4.93%
Ins Owners0.03%
Ins Owner Change0.44%
Market Cap85.05B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target173.34 (8.27%)
Short Float %1.34%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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)-0.38%
PT rev (3m)6.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.34 | ||
| P/S | 3.43 | ||
| P/FCF | 55.08 | ||
| P/OCF | 34.06 | ||
| P/B | 18.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.57 |
EPS(TTM)7.91
EY4.94%
EPS(NY)8.73
Fwd EY5.45%
FCF(TTM)2.91
FCFY1.82%
OCF(TTM)4.7
OCFY2.94%
SpS46.73
BVpS8.71
TBVpS-5.49
PEG (NY)11.75
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 | 4.31 |
F-Score5
WACC7.95%
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 Y1.72%
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 Year2.79%
Revenue Next 2Y3.03%
Revenue Next 3Y3.01%
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 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.
What is the valuation of 3M CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for 3M CO (MMM) is 20.24 and the Price/Book (PB) ratio is 18.38.
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.