3M CO (MMM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMM - US88579Y1010 - Common Stock
168.09 USD
+3.48 (+2.11%)
168.09 USD
0 (0%)
Overall MMM gets a fundamental rating of 6 out of 10. We evaluated MMM against 7 industry peers in the Industrial Conglomerates industry. Both the health and profitability get an excellent rating, making MMM a very profitable company, without any liquidiy or solvency issues. 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.
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 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.
MMM has a better Return On Invested Capital (14.75%) than 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
MMM has a better Profit Margin (13.70%) than 85.71% of its industry peers.
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.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
MMM has a Gross Margin of 40.98%. This is amongst the best in the industry. MMM outperforms 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
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.
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 4.39 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM has a better Altman-Z score (4.39) than 100.00% of its industry peers.
The Debt to FCF ratio of MMM is 8.16, which is on the high side as it means it would take MMM, 8.16 years of fcf income to pay off 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 (2.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.39 |
ROIC/WACC1.87
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MMM should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.84, MMM belongs to the best 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.
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%.
Measured over the past years, MMM shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.72% on average per year.
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 Y1.8%
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
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
MMM is valuated rather expensively with a Price/Earnings ratio of 21.25.
Based on the Price/Earnings ratio, MMM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.47, MMM is valued at the same level.
The Price/Forward Earnings ratio is 19.26, which indicates a rather expensive current valuation of MMM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
Based on the Price/Free Cash Flow ratio, MMM is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.99 | ||
| EV/EBITDA | 15.28 |
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)11.83
PEG (5Y)N/A
EPS Next 2Y4.58%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
MMM's Dividend Yield is a higher than the industry average which is at 6.52.
Compared to the average S&P500 Dividend Yield of 2.41, MMM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 2Y4.58%
EPS Next 3Y5.84%
168.09
+3.48 (+2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner Change-4.98%
Ins Owners0.03%
Ins Owner Change0.29%
Market Cap89.53B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target174 (3.52%)
Short Float %1.28%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)7.29%
PT rev (3m)7.34%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)1.31%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 19.26 | ||
| P/S | 3.61 | ||
| P/FCF | 57.99 | ||
| P/OCF | 35.85 | ||
| P/B | 19.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.28 |
EPS(TTM)7.91
EY4.71%
EPS(NY)8.73
Fwd EY5.19%
FCF(TTM)2.9
FCFY1.72%
OCF(TTM)4.69
OCFY2.79%
SpS46.61
BVpS8.69
TBVpS-5.47
PEG (NY)11.83
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 | 4.39 |
F-Score5
WACC7.88%
ROIC/WACC1.87
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 21.25 and the Price/Book (PB) ratio is 19.35.
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%.