3M CO (MMM.DE) Stock Fundamental Analysis
FRA:MMM - Deutsche Boerse Ag - US88579Y1010 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to MMM. MMM was compared to 13 industry peers in the Industrial Conglomerates industry. While MMM has a great profitability rating, there are some minor concerns on its financial health. MMM does not seem to be growing, but still is valued expensively.
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.
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
Looking at the Return On Assets, with a value of 10.92%, MMM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Return On Equity of MMM (97.69%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.70%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MMM had an Average Return On Invested Capital over the past 3 years of 11.12%. This is above the industry average of 6.48%.
The 3 year average ROIC (11.12%) for MMM is below the current ROIC(13.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.92% | ||
| ROE | 97.69% | ||
| ROIC | 13.7% |
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
The Profit Margin of MMM (17.79%) is better than 84.62% of its industry peers.
In the last couple of years the Profit Margin of MMM has grown nicely.
Looking at the Operating Margin, with a value of 20.46%, MMM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
MMM's Gross Margin of 41.21% is in line compared to the rest of the industry. MMM outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of MMM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.46% | ||
| PM (TTM) | 17.79% | ||
| GM | 41.21% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMM is still creating some value.
Compared to 1 year ago, MMM has less shares outstanding
The number of shares outstanding for MMM has been reduced compared to 5 years ago.
The debt/assets ratio for MMM is higher compared to a year ago.
2.2 Solvency
MMM has an Altman-Z score of 3.96. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
MMM has a better Altman-Z score (3.96) than 100.00% of its industry peers.
A Debt/Equity ratio of 2.76 is on the high side and indicates that MMM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.76, MMM is doing worse than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.96 |
ROIC/WACC1.71
WACC8.01%
2.3 Liquidity
MMM has a Current Ratio of 1.66. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
MMM has a Current ratio of 1.66. This is in the better half of the industry: MMM outperforms 69.23% of its industry peers.
MMM has a Quick Ratio of 1.25. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
MMM has a Quick ratio (1.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased strongly by -22.67% in the last year.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
MMM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.06%.
MMM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.22% yearly.
EPS 1Y (TTM)-22.67%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-21.34%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%
3.2 Future
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.70% yearly.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y3.5%
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 20.20, MMM is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MMM.
When comparing the Price/Earnings ratio of MMM to the average of the S&P500 Index (27.50), we can say MMM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.87, the valuation of MMM can be described as rather expensive.
MMM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, MMM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than MMM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The excellent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.85%
EPS Next 3Y5.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.80, MMM is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.34, MMM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of MMM decreases each year by -8.81%.
Dividend Growth(5Y)-8.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MMM pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
DP35.38%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
FRA:MMM (7/18/2025, 7:00:00 PM)
130.3
-5.92 (-4.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners73.84%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap70.12B
Analysts75.65
Price Target134.68 (3.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend3.11
Dividend Growth(5Y)-8.81%
DP35.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.75%
Min EPS beat(2)0.09%
Max EPS beat(2)5.42%
EPS beat(4)4
Avg EPS beat(4)5.49%
Min EPS beat(4)0.09%
Max EPS beat(4)13.52%
EPS beat(8)8
Avg EPS beat(8)9.58%
EPS beat(12)11
Avg EPS beat(12)8.28%
EPS beat(16)15
Avg EPS beat(16)9.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.16%
Revenue beat(12)5
Avg Revenue beat(12)0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.49%
PT rev (1m)-1.92%
PT rev (3m)-7.17%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.87 | ||
| P/S | 3.31 | ||
| P/FCF | N/A | ||
| P/OCF | 83.45 | ||
| P/B | 18.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.53 |
EPS(TTM)6.45
EY4.95%
EPS(NY)7.29
Fwd EY5.59%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.56
OCFY1.2%
SpS39.34
BVpS7.16
TBVpS-4.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.92% | ||
| ROE | 97.69% | ||
| ROCE | 16.45% | ||
| ROIC | 13.7% | ||
| ROICexc | 17.8% | ||
| ROICexgc | 26.19% | ||
| OM | 20.46% | ||
| PM (TTM) | 17.79% | ||
| GM | 41.21% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-10.19%
ROICexcg 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-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 85.2% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 15.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.96 |
F-Score7
WACC8.01%
ROIC/WACC1.71
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)-22.67%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%-21.34%
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
Revenue Next 5Y3.5%
EBIT growth 1Y-12.49%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year31.55%
EBIT Next 3Y14.58%
EBIT Next 5Y9.76%
FCF growth 1Y-101.7%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-83.38%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%