3M CO (MMM.DE) Stock Fundamental Analysis
FRA:MMM - Deutsche Boerse Ag - US88579Y1010 - Common Stock - Currency: EUR
Taking everything into account, MMM scores 5 out of 10 in our fundamental rating. MMM was compared to 15 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 expensive and 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 has reported a negative cash flow from operations.
Of the past 5 years MMM 4 years were profitable.
MMM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MMM has a better Return On Assets (10.37%) than 93.33% of its industry peers.
MMM has a Return On Equity of 91.82%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.42%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MMM is above the industry average of 6.33%.
The 3 year average ROIC (11.12%) for MMM is below the current ROIC(13.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.37% | ||
| ROE | 91.82% | ||
| ROIC | 13.42% |
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
Looking at the Profit Margin, with a value of 16.01%, MMM belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
MMM's Profit Margin has improved in the last couple of years.
MMM has a better Operating Margin (19.75%) than 93.33% of its industry peers.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
The Gross Margin of MMM (41.11%) is comparable to the rest of the industry.
MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.75% | ||
| PM (TTM) | 16.01% | ||
| GM | 41.11% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
MMM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MMM has less shares outstanding
MMM has a worse debt/assets ratio than last year.
2.2 Solvency
MMM has an Altman-Z score of 4.09. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.09, MMM belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
MMM has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
MMM's Debt to Equity ratio of 2.91 is on the low side compared to the rest of the industry. MMM is outperformed by 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.09 |
ROIC/WACC1.7
WACC7.9%
2.3 Liquidity
MMM has a Current Ratio of 1.72. 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 1.72. This is in the better half of the industry: MMM outperforms 80.00% of its industry peers.
A Quick Ratio of 1.20 indicates that MMM should not have too much problems paying its short term obligations.
MMM has a Quick ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.26%.
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 for MMM has decreased by -13.97% in the past year. This is quite bad
Measured over the past years, MMM shows a decrease in Revenue. The Revenue has been decreasing by -5.22% on average per year.
EPS 1Y (TTM)-18.26%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%11.92%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%2.31%
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 Year2.47%
Revenue Next 2Y2.63%
Revenue Next 3Y2.72%
Revenue Next 5Y3.5%
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
With a Price/Earnings ratio of 20.17, MMM is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MMM.
Compared to an average S&P500 Price/Earnings ratio of 26.86, MMM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.41, the valuation of MMM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMM is on the same level as its industry peers.
MMM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
MMM's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
MMM has an outstanding profitability rating, which 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 13.74, MMM is paying slightly less dividend.
MMM's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| 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 39.27% of its income as dividend. This is a sustainable payout ratio.
DP39.27%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
FRA:MMM (8/21/2025, 5:01:36 PM)
133.34
+1.6 (+1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners74.28%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap71.02B
Analysts75.65
Price Target140.2 (5.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend3.11
Dividend Growth(5Y)-8.81%
DP39.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)5.42%
Max EPS beat(2)6.18%
EPS beat(4)4
Avg EPS beat(4)3.66%
Min EPS beat(4)0.09%
Max EPS beat(4)6.18%
EPS beat(8)8
Avg EPS beat(8)7.24%
EPS beat(12)11
Avg EPS beat(12)8.66%
EPS beat(16)15
Avg EPS beat(16)8.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)-0.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.27%
Revenue beat(12)4
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)0.26%
PT rev (1m)4.09%
PT rev (3m)3.72%
EPS NQ rev (1m)2%
EPS NQ rev (3m)-2.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.41 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 19.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.85 |
EPS(TTM)6.61
EY4.96%
EPS(NY)7.24
Fwd EY5.43%
FCF(TTM)-3.2
FCFYN/A
OCF(TTM)-1.61
OCFYN/A
SpS39.64
BVpS6.91
TBVpS-5.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.37% | ||
| ROE | 91.82% | ||
| ROCE | 16.1% | ||
| ROIC | 13.42% | ||
| ROICexc | 15.59% | ||
| ROICexgc | 22.04% | ||
| OM | 19.75% | ||
| PM (TTM) | 16.01% | ||
| GM | 41.11% | ||
| 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-Score4
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 80.94% | ||
| Cap/Sales | 3.99% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.09 |
F-Score4
WACC7.9%
ROIC/WACC1.7
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)-18.26%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%11.92%
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%2.31%
Revenue Next Year2.47%
Revenue Next 2Y2.63%
Revenue Next 3Y2.72%
Revenue Next 5Y3.5%
EBIT growth 1Y-11.39%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.69%
EBIT Next 3Y14.82%
EBIT Next 5Y9.76%
FCF growth 1Y-144.62%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-116.06%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%