3M CO (MMM)
US88579Y1010 - Common Stock
MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Industrial Conglomerates industry. MMM has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In the past year MMM had a positive cash flow from operations.
MMM had positive earnings in 4 of the past 5 years.
In the past 5 years MMM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MMM (10.74%) is better than 100.00% of its industry peers.
MMM's Return On Equity of 94.57% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
MMM has a Return On Invested Capital of 15.22%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
MMM had an Average Return On Invested Capital over the past 3 years of 14.01%. This is above the industry average of 9.11%.
The last Return On Invested Capital (15.22%) for MMM is above the 3 year average (14.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.74% | ||
| ROE | 94.57% | ||
| ROIC | 15.22% |
ROA(3y)3.73%
ROA(5y)6.56%
ROE(3y)-22.31%
ROE(5y)4.06%
ROIC(3y)14.01%
ROIC(5y)14.74%
1.3 Margins
The Profit Margin of MMM (16.52%) is better than 100.00% of its industry peers.
With an excellent Operating Margin value of 19.82%, MMM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of MMM has declined.
MMM has a Gross Margin of 42.34%. This is amongst the best in the industry. MMM outperforms 88.89% of its industry peers.
In the last couple of years the Gross Margin of MMM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.82% | ||
| PM (TTM) | 16.52% | ||
| GM | 42.34% |
OM growth 3Y-6.55%
OM growth 5Y-3.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.43%
GM growth 5Y-2.3%
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 more shares outstanding than it did 1 year ago.
MMM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MMM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.62 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM's Altman-Z score of 3.62 is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
The Debt to FCF ratio of MMM is 17.85, which is on the high side as it means it would take MMM, 17.85 years of fcf income to pay off all of its debts.
MMM has a Debt to FCF ratio of 17.85. This is in the better half of the industry: MMM outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 2.83 is on the high side and indicates that MMM has dependencies on debt financing.
MMM's Debt to Equity ratio of 2.83 is in line compared to the rest of the industry. MMM outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 17.85 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.93
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.43 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a better Current ratio (1.43) than 77.78% of its industry peers.
A Quick Ratio of 1.08 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a better Quick ratio (1.08) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
MMM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.18%.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.53% yearly.
MMM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.84%.
Measured over the past years, MMM shows a decrease in Revenue. The Revenue has been decreasing by -0.05% on average per year.
EPS 1Y (TTM)-4.18%
EPS 3Y1.83%
EPS 5Y-1.53%
EPS Q2Q%-26.12%
Revenue 1Y (TTM)-18.84%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.05%
Sales Q2Q%-24.34%
3.2 Future
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.80% yearly.
MMM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.04% yearly.
EPS Next Y-20.41%
EPS Next 2Y-7.05%
EPS Next 3Y-2.12%
EPS Next 5Y1.8%
Revenue Next Year-24.86%
Revenue Next 2Y-12.06%
Revenue Next 3Y-7.34%
Revenue Next 5Y-2.04%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.60, which indicates a correct valuation of MMM.
Based on the Price/Earnings ratio, MMM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. MMM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.95, which indicates a correct valuation of MMM.
MMM's Price/Forward Earnings ratio is rather cheap when compared to the industry. MMM is cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.82 | ||
| EV/EBITDA | 10.54 |
4.3 Compensation for Growth
The excellent profitability rating of MMM may justify a higher PE ratio.
A cheap valuation may be justified as MMM's earnings are expected to decrease with -2.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.05%
EPS Next 3Y-2.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.85, MMM pays a better dividend. On top of this MMM pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, MMM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of MMM has a limited annual growth rate of 1.98%.
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)1.98%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
55.40% of the earnings are spent on dividend by MMM. This is a bit on the high side, but may be sustainable.
MMM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.4%
EPS Next 2Y-7.05%
EPS Next 3Y-2.12%
3M CO
NYSE:MMM (11/21/2024, 8:04:00 PM)
After market: 127.34 +0.02 (+0.02%)127.32
-0.52 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap69.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 15.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.74% | ||
| ROE | 94.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.82% | ||
| PM (TTM) | 16.52% | ||
| GM | 42.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.18%
EPS 3Y1.83%
EPS 5Y
EPS Q2Q%
EPS Next Y-20.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.84%
Revenue growth 3Y0.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y