3M CO (MMM)
US88579Y1010 - Common Stock
Overall MMM gets a fundamental rating of 5 out of 10. We evaluated MMM against 8 industry peers in the Industrial Conglomerates industry. MMM scores excellent on profitability, 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
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.
Each year in the past 5 years MMM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.74%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 94.57%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM's Return On Invested Capital of 15.22% is amongst the best of the industry. MMM outperforms 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 9.51%.
The 3 year average ROIC (14.01%) for MMM is below the current ROIC(15.22%), indicating increased profibility in the last year.
| 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
MMM's Profit Margin of 16.52% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
With an excellent Operating Margin value of 19.82%, MMM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
MMM's Operating Margin has declined in the last couple of years.
The Gross Margin of MMM (42.34%) is better than 87.50% 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
MMM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MMM has been increased compared to 1 year ago.
MMM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MMM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.63 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM has a better Altman-Z score (3.63) than 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.
Looking at the Debt to FCF ratio, with a value of 17.85, MMM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
MMM has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
MMM's Debt to Equity ratio of 2.83 is in line compared to the rest of the industry. MMM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 17.85 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.89
WACC8.04%
2.3 Liquidity
MMM has a Current Ratio of 1.43. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.43, MMM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
MMM has a Quick Ratio of 1.08. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.08, MMM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased by -4.18% in the last year.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.53% yearly.
Looking at the last year, MMM shows a very negative growth in Revenue. The Revenue has decreased by -18.84% in the last year.
The Revenue has been decreasing by -0.05% on average over the past years.
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 2.02% yearly.
MMM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.77% yearly.
EPS Next Y-20.27%
EPS Next 2Y-7.14%
EPS Next 3Y-2.02%
EPS Next 5Y2.02%
Revenue Next Year-24.78%
Revenue Next 2Y-12.04%
Revenue Next 3Y-7.26%
Revenue Next 5Y-1.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.83, which indicates a correct valuation of MMM.
Based on the Price/Earnings ratio, MMM is valued a bit cheaper than 75.00% of the companies in the same industry.
MMM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 16.23, the valuation of MMM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMM indicates a rather cheap valuation: MMM is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.26 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
The excellent profitability rating of MMM may justify a higher PE ratio.
MMM's earnings are expected to decrease with -2.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.14%
EPS Next 3Y-2.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, MMM has a reasonable but not impressive dividend return.
MMM's Dividend Yield is rather good when compared to the industry average which is at 5.63. MMM pays more dividend than 87.50% of the companies in the same industry.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of MMM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP55.4%
EPS Next 2Y-7.14%
EPS Next 3Y-2.02%
3M CO
NYSE:MMM (12/20/2024, 8:24:58 PM)
After market: 129 -0.28 (-0.22%)129.28
+2.15 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner Change2%
Ins Owners0.06%
Ins Owner Change1.49%
Market Cap70.40B
Analysts73.91
Price Target150.79 (16.64%)
Short Float %1.17%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Dividend Growth(5Y)1.98%
DP55.4%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.23%
Min EPS beat(2)2.93%
Max EPS beat(2)13.52%
EPS beat(4)4
Avg EPS beat(4)8.23%
Min EPS beat(4)2.93%
Max EPS beat(4)13.52%
EPS beat(8)7
Avg EPS beat(8)11.23%
EPS beat(12)11
Avg EPS beat(12)10.09%
EPS beat(16)15
Avg EPS beat(16)10.8%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)1.4%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)1.4%
Revenue beat(8)4
Avg Revenue beat(8)0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.85%
PT rev (1m)4.75%
PT rev (3m)13.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 16.23 | ||
| P/S | 2.65 | ||
| P/FCF | 95.26 | ||
| P/OCF | 35.43 | ||
| P/B | 15.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)8.72
EY6.75%
EPS(NY)7.97
Fwd EY6.16%
FCF(TTM)1.36
FCFY1.05%
OCF(TTM)3.65
OCFY2.82%
SpS48.81
BVpS8.52
TBVpS-5.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.74% | ||
| ROE | 94.57% | ||
| ROCE | 17.87% | ||
| ROIC | 15.22% | ||
| ROICexc | 19.85% | ||
| ROICexgc | 29.11% | ||
| OM | 19.82% | ||
| PM (TTM) | 16.52% | ||
| GM | 42.34% | ||
| FCFM | 2.78% |
ROA(3y)3.73%
ROA(5y)6.56%
ROE(3y)-22.31%
ROE(5y)4.06%
ROIC(3y)14.01%
ROIC(5y)14.74%
ROICexc(3y)16.16%
ROICexc(5y)16.77%
ROICexgc(3y)36.08%
ROICexgc(5y)38.56%
ROCE(3y)15.76%
ROCE(5y)16.55%
ROICexcg growth 3Y-4.32%
ROICexcg growth 5Y-3.43%
ROICexc growth 3Y-2.88%
ROICexc growth 5Y-6.26%
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%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 17.85 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 79.09% | ||
| Cap/Sales | 4.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.02% | ||
| Profit Quality | 16.83% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.63 |
F-Score5
WACC8.04%
ROIC/WACC1.89
Cap/Depr(3y)86.84%
Cap/Depr(5y)89.14%
Cap/Sales(3y)4.86%
Cap/Sales(5y)4.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.18%
EPS 3Y1.83%
EPS 5Y-1.53%
EPS Q2Q%-26.12%
EPS Next Y-20.27%
EPS Next 2Y-7.14%
EPS Next 3Y-2.02%
EPS Next 5Y2.02%
Revenue 1Y (TTM)-18.84%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.05%
Sales Q2Q%-24.34%
Revenue Next Year-24.78%
Revenue Next 2Y-12.04%
Revenue Next 3Y-7.26%
Revenue Next 5Y-1.77%
EBIT growth 1Y-1%
EBIT growth 3Y-6.07%
EBIT growth 5Y-3.21%
EBIT Next Year1.99%
EBIT Next 3Y4.6%
EBIT Next 5Y4.96%
FCF growth 1Y-80.93%
FCF growth 3Y-8.5%
FCF growth 5Y0.82%
OCF growth 1Y-64.98%
OCF growth 3Y-6.27%
OCF growth 5Y0.74%