3M CO (MMM)
US88579Y1010 - Common Stock
MMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Industrial Conglomerates industry. MMM has only an average score on both its financial health and profitability. MMM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MMM was profitable.
MMM had a positive operating cash flow in the past year.
MMM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MMM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MMM (-12.75%) is comparable to the rest of the industry.
MMM has a Return On Equity (-144.74%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 13.07%, 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 significantly above the industry average of 8.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.75% | ||
| ROE | -144.74% | ||
| ROIC | 13.07% |
ROA(3y)3.73%
ROA(5y)6.56%
ROE(3y)-22.31%
ROE(5y)4.06%
ROIC(3y)14.01%
ROIC(5y)14.74%
1.3 Margins
Looking at the Operating Margin, with a value of 18.64%, MMM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of MMM has declined.
With an excellent Gross Margin value of 44.55%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.64% | ||
| PM (TTM) | N/A | ||
| GM | 44.55% |
OM growth 3Y-6.55%
OM growth 5Y-3.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.43%
GM growth 5Y-2.3%
2. Health
2.1 Basic Checks
MMM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MMM has more shares outstanding
Compared to 5 years ago, MMM has less shares outstanding
The debt/assets ratio for MMM has been reduced compared to a year ago.
2.2 Solvency
MMM has an Altman-Z score of 2.77. This is not the best score and indicates that MMM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.77, MMM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of MMM is 4.60, which is a neutral value as it means it would take MMM, 4.60 years of fcf income to pay off all of its debts.
MMM has a better Debt to FCF ratio (4.60) than 66.67% of its industry peers.
A Debt/Equity ratio of 4.23 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a Debt to Equity ratio of 4.23. This is comparable to the rest of the industry: MMM outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.72
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.64 indicates that MMM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.64, MMM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
MMM has a Quick Ratio of 1.27. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MMM (1.27) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.55% over the past year.
The Earnings Per Share has been decreasing by -1.53% on average over the past years.
The Revenue has decreased by -2.33% in the past year.
Measured over the past years, MMM shows a decrease in Revenue. The Revenue has been decreasing by -0.05% on average per year.
EPS 1Y (TTM)2.55%
EPS 3Y1.83%
EPS 5Y-1.53%
EPS Q2Q%21.32%
Revenue 1Y (TTM)-2.33%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.05%
Sales Q2Q%-3.85%
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 1.80% on average per year.
The Revenue is expected to decrease by -2.04% on average over the next years.
EPS Next Y-21.93%
EPS Next 2Y-7.63%
EPS Next 3Y-3.13%
EPS Next 5Y1.8%
Revenue Next Year-24.95%
Revenue Next 2Y-11.97%
Revenue Next 3Y-7.38%
Revenue Next 5Y-2.04%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.70, which indicates a very decent valuation of MMM.
66.67% of the companies in the same industry are more expensive than MMM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MMM to the average of the S&P500 Index (24.29), we can say MMM is valued rather cheaply.
MMM is valuated correctly with a Price/Forward Earnings ratio of 13.12.
100.00% of the companies in the same industry are more expensive than MMM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, MMM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MMM is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
MMM has a very decent profitability rating, which may justify a higher PE ratio.
MMM's earnings are expected to decrease with -3.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.63%
EPS Next 3Y-3.13%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
MMM's Dividend Yield is rather good when compared to the industry average which is at 6.11. MMM pays more dividend than 88.89% of the companies in the same industry.
MMM's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of MMM has a limited annual growth rate of 1.98%.
MMM has paid a dividend for at least 10 years, which is a reliable track record.
MMM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.98%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
The earnings of MMM are negative and hence is the payout ratio. MMM will probably not be able to sustain this dividend level.
The dividend of MMM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-47.12%
EPS Next 2Y-7.63%
EPS Next 3Y-3.13%
3M CO
NYSE:MMM (7/25/2024, 7:04:00 PM)
After market: 103.4 +0.01 (+0.01%)103.39
+0.14 (+0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 13.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.75% | ||
| ROE | -144.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.64% | ||
| PM (TTM) | N/A | ||
| GM | 44.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.55%
EPS 3Y1.83%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.33%
Revenue growth 3Y0.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y