3M CO (MMM)

US88579Y1010 - Common Stock

99.67  +0.16 (+0.16%)

After market: 99.99 +0.32 (+0.32%)

Fundamental Rating

4

MMM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 10 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.



5

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.
Of the past 5 years MMM 4 years were profitable.
In the past 5 years MMM always reported a positive cash flow from operatings.

1.2 Ratios

MMM's Return On Assets of -12.75% is on the low side compared to the rest of the industry. MMM is outperformed by 60.00% of its industry peers.
MMM has a Return On Equity of -144.74%. This is in the lower half of the industry: MMM underperforms 60.00% of its industry peers.
MMM's Return On Invested Capital of 13.07% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMM is significantly above the industry average of 7.71%.
Industry RankSector 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

MMM has a better Operating Margin (18.64%) than 90.00% of its industry peers.
MMM's Operating Margin has declined in the last couple of years.
MMM has a better Gross Margin (44.55%) than 100.00% of its industry peers.
MMM's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MMM is creating value.
Compared to 1 year ago, MMM has more shares outstanding
The number of shares outstanding for MMM has been reduced compared to 5 years ago.
Compared to 1 year ago, MMM has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.74 indicates that MMM is not a great score, but indicates only limited risk for bankruptcy at the moment.
MMM's Altman-Z score of 2.74 is amongst the best of the industry. MMM outperforms 90.00% of its industry peers.
MMM has a debt to FCF ratio of 4.60. This is a neutral value as MMM would need 4.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.60, MMM is in line with its industry, outperforming 60.00% of the companies in the same industry.
MMM has a Debt/Equity ratio of 4.23. This is a high value indicating a heavy dependency on external financing.
MMM's Debt to Equity ratio of 4.23 is on the low side compared to the rest of the industry. MMM is outperformed by 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.23
Debt/FCF 4.6
Altman-Z 2.74
ROIC/WACC1.69
WACC7.72%

2.3 Liquidity

A Current Ratio of 1.64 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, MMM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that MMM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.27, MMM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.27

1

3. Growth

3.1 Past

MMM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.55%.
Measured over the past years, MMM shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.53% on average per year.
Looking at the last year, MMM shows a decrease in Revenue. The Revenue has decreased by -2.33% in the last year.
The Revenue has been decreasing by -0.05% on average over the past years.
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%-0.35%

3.2 Future

The Earnings Per Share is expected to grow by 1.39% on average over the next years.
The Revenue is expected to decrease by -2.16% on average over the next years.
EPS Next Y-16.2%
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%
EPS Next 5Y1.39%
Revenue Next Year-18.65%
Revenue Next 2Y-11.92%
Revenue Next 3Y-7.08%
Revenue Next 5Y-2.16%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.32, the valuation of MMM can be described as reasonable.
70.00% 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 28.24. MMM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 13.05, MMM is valued correctly.
Based on the Price/Forward Earnings ratio, MMM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (19.93), we can say MMM is valued slightly cheaper.
Industry RankSector Rank
PE 10.32
Fwd PE 13.05

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 80.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.84
EV/EBITDA 8.14

4.3 Compensation for Growth

A cheap valuation may be justified as MMM's earnings are expected to decrease with -4.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.81%, MMM has a reasonable but not impressive dividend return.
MMM's Dividend Yield is rather good when compared to the industry average which is at 5.48. MMM pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MMM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.81%

5.2 History

The dividend of MMM has a limited annual growth rate of 1.98%.
MMM has been paying a dividend for at least 10 years, so it has 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 Years19
Div Non Decr Years19

5.3 Sustainability

MMM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
MMM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-47.12%
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%

3M CO

NYSE:MMM (5/24/2024, 7:04:00 PM)

After market: 99.99 +0.32 (+0.32%)

99.67

+0.16 (+0.16%)

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 Cap55.15B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.81%
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 RankSector Rank
PE 10.32
Fwd PE 13.05
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 RankSector 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 RankSector 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-16.2%
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