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. While MMM belongs to the best of the industry regarding profitability, 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.
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 93.33% of the companies in the same industry.
MMM has a better Return On Equity (97.69%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.70%, MMM belongs to the best 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 6.55%.
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 80.00% of its industry peers.
MMM's Profit Margin has improved in the last couple of years.
The Operating Margin of MMM (20.46%) is better than 86.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMM is 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.
MMM has a worse debt/assets ratio than last year.
2.2 Solvency
MMM has an Altman-Z score of 3.90. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
MMM's Altman-Z score of 3.90 is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
MMM has a Debt/Equity ratio of 2.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MMM (2.76) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.9 |
ROIC/WACC1.68
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.66 indicates that MMM should not have too much problems paying its short term obligations.
The Current ratio of MMM (1.66) is better than 73.33% 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
MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.67%.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
Looking at the last year, MMM shows a very negative growth in Revenue. The Revenue has decreased by -20.06% in the last year.
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
Based on estimates for the next years, MMM will show a small growth in Earnings Per Share. The EPS will grow by 5.41% on average per year.
MMM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y-3.18%
EPS Next 2Y2.52%
EPS Next 3Y4.97%
EPS Next 5Y5.41%
Revenue Next Year1.33%
Revenue Next 2Y2.11%
Revenue Next 3Y2.45%
Revenue Next 5Y4.21%
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.
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
A Price/Earnings ratio of 20.36 indicates a rather expensive valuation of MMM.
66.67% of the companies in the same industry are more expensive than MMM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.70. MMM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.13, the valuation of MMM can be described as rather expensive.
MMM's Price/Forward Earnings is on the same level as the industry average.
MMM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 18.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.97 |
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 1.96%.
MMM's Dividend Yield is slightly below the industry average, which is at 3.74.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of MMM decreases each year by -8.81%.
Dividend Growth(5Y)-8.81%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
35.38% of the earnings are spent on dividend by MMM. This is a low number and sustainable payout ratio.
DP35.38%
EPS Next 2Y2.52%
EPS Next 3Y4.97%
FRA:MMM (5/19/2025, 7:00:00 PM)
135.8
+0.66 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners69.27%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap73.08B
Analysts75.65
Price Target135.16 (-0.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend3.24
Dividend Growth(5Y)-8.81%
DP35.38%
Div Incr Years5
Div Non Decr Years5
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)-6.84%
PT rev (3m)-8.29%
EPS NQ rev (1m)-1.69%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 18.13 | ||
| P/S | 3.34 | ||
| P/FCF | N/A | ||
| P/OCF | 84.08 | ||
| P/B | 18.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.97 |
EPS(TTM)6.67
EY4.91%
EPS(NY)7.49
Fwd EY5.52%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.62
OCFY1.19%
SpS40.69
BVpS7.41
TBVpS-5.08
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 | 3.9 |
F-Score7
WACC8.14%
ROIC/WACC1.68
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 5Y5.41%
Revenue 1Y (TTM)-20.06%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%-25.15%
Revenue Next Year1.33%
Revenue Next 2Y2.11%
Revenue Next 3Y2.45%
Revenue Next 5Y4.21%
EBIT growth 1Y-12.49%
EBIT growth 3Y-12.56%
EBIT growth 5Y-4.5%
EBIT Next Year34.75%
EBIT Next 3Y15.33%
EBIT Next 5Y7.34%
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%