3M CO (MMM.DE) Stock Fundamental Analysis
FRA:MMM - Deutsche Boerse Ag - US88579Y1010 - Common Stock - Currency: EUR
MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Industrial Conglomerates industry. While MMM has a great profitability rating, there are some minor concerns on its financial health. MMM has a expensive valuation and it also scores bad on growth.
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
MMM has a Return On Assets of 10.92%. This is amongst the best in the industry. MMM outperforms 92.86% of its industry peers.
MMM has a better Return On Equity (97.69%) than 100.00% of its industry peers.
The Return On Invested Capital of MMM (13.70%) is better 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 6.22%.
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
MMM has a better Profit Margin (17.79%) than 85.71% of its industry peers.
MMM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.46%, MMM belongs to the top of the industry, outperforming 92.86% 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 has a Gross Margin (41.21%) which is in line with its industry peers.
MMM's Gross Margin has declined in the last couple of years.
| 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
MMM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MMM has been reduced compared to 1 year ago.
MMM has less shares outstanding than it did 5 years ago.
MMM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.82 indicates that MMM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.82, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM has a Debt/Equity ratio of 2.76. This is a high value indicating a heavy dependency on external financing.
MMM's Debt to Equity ratio of 2.76 is on the low side compared to the rest of the industry. MMM is outperformed by 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.82 |
ROIC/WACC1.42
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.66 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, MMM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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 in line with its industry peers.
| 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.
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 -20.06% in the past year. This is quite bad
The Revenue has been decreasing by -5.22% on average over the past years.
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.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y-3.18%
EPS Next 2Y2.52%
EPS Next 3Y4.97%
EPS Next 5Y4.7%
Revenue Next Year1.36%
Revenue Next 2Y2.17%
Revenue Next 3Y2.55%
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 19.04, MMM is valued on the expensive side.
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 26.34.
The Price/Forward Earnings ratio is 16.96, which indicates a correct valuation of MMM.
MMM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (22.19), we can say MMM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMM indicates a slightly more expensive valuation: MMM is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.19 |
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 2Y2.52%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 2.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.94, MMM has a dividend in line with its industry peers.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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 2Y2.52%
EPS Next 3Y4.97%
FRA:MMM (6/20/2025, 4:16:00 PM)
123.96
+0.08 (+0.06%)
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 Cap66.71B
Analysts75.65
Price Target137.31 (10.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend3.15
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)1.59%
PT rev (3m)-8.44%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-4.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 16.96 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 78.7 | ||
| P/B | 17.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.19 |
EPS(TTM)6.51
EY5.25%
EPS(NY)7.31
Fwd EY5.89%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.58
OCFY1.27%
SpS39.68
BVpS7.23
TBVpS-4.95
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 | 3.82 |
F-Score7
WACC9.63%
ROIC/WACC1.42
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-3.18%
EPS Next 2Y2.52%
EPS Next 3Y4.97%
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 Year1.36%
Revenue Next 2Y2.17%
Revenue Next 3Y2.55%
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%