3M CO (MMM) Stock Fundamental Analysis
USA - NYSE:MMM - US88579Y1010 - Common Stock
164.61 USD
-1.97 (-1.18%)
164.93 USD
+0.32 (+0.19%)
We assign a fundamental rating of 6 out of 10 to MMM. MMM was compared to 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 has a valuation in line with the averages, 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.
MMM had positive earnings in 4 of the past 5 years.
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.
With an excellent Return On Equity value of 73.49%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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
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.
MMM's Operating Margin has been stable in the last couple of years.
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.
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
MMM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MMM has less shares outstanding than it did 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
MMM has an Altman-Z score of 4.36. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
MMM has a Altman-Z score of 4.36. This is amongst the best in the industry. MMM outperforms 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.
With an excellent Debt to FCF ratio value of 8.16, MMM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.86
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a better Current ratio (1.84) than 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%.
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.
Looking at the last year, MMM shows a small growth in Revenue. The Revenue has grown by 1.05% in the last year.
The Revenue has been decreasing by -5.22% on average over the past years.
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
Based on estimates for the next years, MMM will show a small growth in Earnings Per Share. The EPS will grow by 4.80% on average per year.
Based on estimates for the next years, MMM will show a small growth in Revenue. The Revenue will grow by 3.73% on average per year.
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.
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 20.81, MMM is valued on the expensive side.
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 25.07. MMM is around the same levels.
Based on the Price/Forward Earnings ratio of 18.86, the valuation of MMM can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MMM.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (34.08), we can say MMM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMM is on the same level as its industry peers.
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 | 56.79 | ||
| EV/EBITDA | 14.98 |
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)11.59
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.
MMM's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 2Y4.58%
EPS Next 3Y5.84%
164.61
-1.97 (-1.18%)
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 Cap87.68B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target173.04 (5.12%)
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 | 20.81 | ||
| Fwd PE | 18.86 | ||
| P/S | 3.53 | ||
| P/FCF | 56.79 | ||
| P/OCF | 35.11 | ||
| P/B | 18.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.98 |
EPS(TTM)7.91
EY4.81%
EPS(NY)8.73
Fwd EY5.3%
FCF(TTM)2.9
FCFY1.76%
OCF(TTM)4.69
OCFY2.85%
SpS46.61
BVpS8.69
TBVpS-5.47
PEG (NY)11.59
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
WACC7.93%
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 20.81 and the Price/Book (PB) ratio is 18.94.
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%.