3M CO (MMM.DE) Stock Fundamental Analysis
Europe - FRA:MMM - US88579Y1010 - Common Stock
130.34 EUR
+0.2 (+0.15%)
Overall MMM gets a fundamental rating of 5 out of 10. We evaluated MMM against 16 industry peers in the Industrial Conglomerates industry. MMM scores excellent on profitability, but 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
MMM had positive earnings in the past year.
In the past year MMM has reported a negative 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
Looking at the Return On Assets, with a value of 10.37%, MMM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
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.
The Return On Invested Capital of MMM (13.42%) is better than 100.00% of its industry peers.
MMM had an Average Return On Invested Capital over the past 3 years of 11.12%. This is significantly above the industry average of 6.11%.
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
The Profit Margin of MMM (16.01%) is better than 87.50% of its industry peers.
In the last couple of years the Profit Margin of MMM has grown nicely.
The Operating Margin of MMM (19.75%) is better than 87.50% of its industry peers.
MMM's Operating Margin has been stable in the last couple of years.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMM 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
The debt/assets ratio for MMM is higher compared to a year ago.
2.2 Solvency
MMM has an Altman-Z score of 4.08. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
MMM has a better Altman-Z score (4.08) than 100.00% of its industry peers.
A Debt/Equity ratio of 2.91 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 2.91, MMM is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.08 |
ROIC/WACC1.75
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.72 indicates that MMM should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.72, MMM belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
MMM has a Quick Ratio of 1.20. 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 Quick ratio value of 1.20, MMM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased strongly by -18.26% 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 -13.97%.
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
Based on estimates for the next years, MMM will show a small growth in Earnings Per Share. The EPS will grow by 4.70% on average per year.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y0.09%
EPS Next 2Y3.81%
EPS Next 3Y5.57%
EPS Next 5Y4.7%
Revenue Next Year2.47%
Revenue Next 2Y2.68%
Revenue Next 3Y2.81%
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
A Price/Earnings ratio of 19.78 indicates a rather expensive valuation of MMM.
MMM's Price/Earnings is on the same level as the industry average.
MMM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.71, which indicates a rather expensive current valuation of MMM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 62.50% of the companies listed in the same industry.
MMM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MMM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)214.07
PEG (5Y)N/A
EPS Next 2Y3.81%
EPS Next 3Y5.57%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
MMM's Dividend Yield is slightly below the industry average, which is at 13.14.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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
39.27% of the earnings are spent on dividend by MMM. This is a low number and sustainable payout ratio.
DP39.27%
EPS Next 2Y3.81%
EPS Next 3Y5.57%
FRA:MMM (10/17/2025, 7:00:00 PM)
130.34
+0.2 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap69.42B
Analysts75
Price Target139.05 (6.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)0.77%
PT rev (3m)3.25%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.98%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 17.71 | ||
| P/S | 3.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 18.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.74 |
EPS(TTM)6.59
EY5.06%
EPS(NY)7.36
Fwd EY5.65%
FCF(TTM)-3.19
FCFYN/A
OCF(TTM)-1.61
OCFYN/A
SpS39.54
BVpS6.9
TBVpS-5.31
PEG (NY)214.07
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 | 4.08 |
F-Score4
WACC7.66%
ROIC/WACC1.75
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 Y0.09%
EPS Next 2Y3.81%
EPS Next 3Y5.57%
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 2Y2.68%
Revenue Next 3Y2.81%
Revenue Next 5Y3.73%
EBIT growth 1Y-11.39%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.71%
EBIT Next 3Y14.99%
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%