3M CO (MMM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MMM - US88579Y1010 - Common Stock
138.94 EUR
+1.68 (+1.22%)
We assign a fundamental rating of 5 out of 10 to MMM. MMM was compared to 16 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 expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MMM had positive earnings in the past year.
MMM had a positive operating cash flow in the past year.
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
MMM has a better Return On Assets (9.04%) than 93.75% of its industry peers.
MMM has a better Return On Equity (73.49%) than 100.00% of its industry peers.
MMM has a better Return On Invested Capital (14.75%) than 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 6.44%.
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's Profit Margin of 13.70% is fine compared to the rest of the industry. MMM outperforms 75.00% 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 20.59%, MMM belongs to the top of the industry, outperforming 93.75% 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.
With a Gross Margin value of 40.98%, MMM perfoms like the industry average, outperforming 50.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MMM 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.
The debt/assets ratio for MMM is higher compared to a year ago.
2.2 Solvency
MMM has an Altman-Z score of 4.32. 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 4.32, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 8.16, MMM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that MMM has dependencies on debt financing.
MMM's Debt to Equity ratio of 2.56 is on the low side compared to the rest of the industry. MMM is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.88
WACC7.84%
2.3 Liquidity
MMM has a Current Ratio of 1.84. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.84, MMM belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
MMM has a Quick Ratio of 1.40. 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 better Quick ratio (1.40) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for MMM have decreased by -9.29% in the last year.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
MMM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
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.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y1.72%
EPS Next 2Y4.6%
EPS Next 3Y5.85%
EPS Next 5Y4.8%
Revenue Next Year2.79%
Revenue Next 2Y3.03%
Revenue Next 3Y3.01%
Revenue Next 5Y3.73%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.64, which indicates a rather expensive current valuation of MMM.
MMM's Price/Earnings ratio is in line with the industry average.
MMM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 18.70 indicates a rather expensive valuation of MMM.
62.50% of the companies in the same industry are more expensive than MMM, based on the Price/Forward Earnings ratio.
MMM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MMM.
MMM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.17 | ||
| EV/EBITDA | 14.67 |
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)11.98
PEG (5Y)N/A
EPS Next 2Y4.6%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.18, MMM is paying slightly less dividend.
MMM's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of MMM decreases each year by -8.82%.
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 2Y4.6%
EPS Next 3Y5.85%
FRA:MMM (1/5/2026, 2:38:44 PM)
138.94
+1.68 (+1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners74.31%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap73.81B
Revenue(TTM)24.82B
Net Income(TTM)3.40B
Analysts75.83
Price Target148.71 (7.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend3.09
Dividend Growth(5Y)-8.82%
DP45.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.85%
PT rev (3m)7.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)0%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.7 | ||
| P/S | 3.49 | ||
| P/FCF | 56.17 | ||
| P/OCF | 34.73 | ||
| P/B | 18.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.67 |
EPS(TTM)6.73
EY4.84%
EPS(NY)7.43
Fwd EY5.35%
FCF(TTM)2.47
FCFY1.78%
OCF(TTM)4
OCFY2.88%
SpS39.77
BVpS7.41
TBVpS-4.67
PEG (NY)11.98
PEG (5Y)N/A
Graham Number33.51
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 | 4.32 |
F-Score5
WACC7.84%
ROIC/WACC1.88
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 Y1.72%
EPS Next 2Y4.6%
EPS Next 3Y5.85%
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 Year2.79%
Revenue Next 2Y3.03%
Revenue Next 3Y3.01%
Revenue Next 5Y3.73%
EBIT growth 1Y3.92%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year35.75%
EBIT Next 3Y14.67%
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.DE FAQ
What is the ChartMill fundamental rating of 3M CO (MMM.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MMM.DE.
What is the valuation status of 3M CO (MMM.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to 3M CO (MMM.DE). This can be considered as Overvalued.
Can you provide the profitability details for 3M CO?
3M CO (MMM.DE) has a profitability rating of 8 / 10.
What is the valuation of 3M CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for 3M CO (MMM.DE) is 20.64 and the Price/Book (PB) ratio is 18.74.
What is the expected EPS growth for 3M CO (MMM.DE) stock?
The Earnings per Share (EPS) of 3M CO (MMM.DE) is expected to grow by 1.72% in the next year.