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3M CO (MMM) Stock Fundamental Analysis

NYSE:MMM - New York Stock Exchange, Inc. - US88579Y1010 - Common Stock - Currency: USD

151.15  +1.06 (+0.71%)

Fundamental Rating

5

Overall MMM gets a fundamental rating of 5 out of 10. We evaluated MMM against 6 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 valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

MMM had positive earnings in the past year.
MMM had a negative 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.
MMM Yearly Net Income VS EBIT VS OCF VS FCFMMM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B

1.2 Ratios

MMM's Return On Assets of 10.37% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
The Return On Equity of MMM (91.82%) is better than 100.00% of its industry peers.
The Return On Invested Capital of MMM (13.42%) is better than 100.00% of its industry peers.
MMM had an Average Return On Invested Capital over the past 3 years of 11.12%. This is above the industry average of 7.74%.
The last Return On Invested Capital (13.42%) for MMM is above the 3 year average (11.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.37%
ROE 91.82%
ROIC 13.42%
ROA(3y)3.02%
ROA(5y)6.63%
ROE(3y)0.78%
ROE(5y)16.81%
ROIC(3y)11.12%
ROIC(5y)12.9%
MMM Yearly ROA, ROE, ROICMMM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100 -100

1.3 Margins

MMM has a better Profit Margin (16.01%) than 100.00% of its industry peers.
MMM's Profit Margin has improved in the last couple of years.
MMM's Operating Margin of 19.75% is amongst the best of the industry. MMM outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of MMM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 41.11%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MMM has declined.
Industry RankSector Rank
OM 19.75%
PM (TTM) 16.01%
GM 41.11%
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%
MMM Yearly Profit, Operating, Gross MarginsMMM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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5

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.
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.
MMM Yearly Shares OutstandingMMM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
MMM Yearly Total Debt VS Total AssetsMMM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 4.06 indicates that MMM is not in any danger for bankruptcy at the moment.
MMM has a better Altman-Z score (4.06) than 100.00% of its industry peers.
A Debt/Equity ratio of 2.91 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a Debt to Equity ratio of 2.91. This is in the better half of the industry: MMM outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.91
Debt/FCF N/A
Altman-Z 4.06
ROIC/WACC1.69
WACC7.94%
MMM Yearly LT Debt VS Equity VS FCFMMM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

MMM has a Current Ratio of 1.72. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MMM (1.72) is better than 83.33% of its industry peers.
MMM has a Quick Ratio of 1.20. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.20, MMM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 1.2
MMM Yearly Current Assets VS Current LiabilitesMMM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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3

3. Growth

3.1 Past

MMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.26%.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
The Revenue for MMM has decreased by -13.97% in the past year. This is quite bad
Measured over the past years, MMM shows a decrease in Revenue. The Revenue has been decreasing by -5.22% on average per year.
EPS 1Y (TTM)-18.26%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%11.92%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%2.31%

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.
Based on estimates for the next years, MMM will show a small growth in Revenue. The Revenue will grow by 3.50% on average per year.
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue Next Year2.47%
Revenue Next 2Y2.63%
Revenue Next 3Y2.72%
Revenue Next 5Y3.5%

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.
MMM Yearly Revenue VS EstimatesMMM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
MMM Yearly EPS VS EstimatesMMM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.63, which indicates a rather expensive current valuation of MMM.
MMM's Price/Earnings ratio is rather cheap when compared to the industry. MMM is cheaper than 100.00% of the companies in the same industry.
MMM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
MMM is valuated rather expensively with a Price/Forward Earnings ratio of 17.91.
Based on the Price/Forward Earnings ratio, MMM is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, MMM is valued rather cheaply.
Industry RankSector Rank
PE 19.63
Fwd PE 17.91
MMM Price Earnings VS Forward Price EarningsMMM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.55
MMM Per share dataMMM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

The excellent profitability rating of MMM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.85%
EPS Next 3Y5.18%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.96%, MMM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.71, MMM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MMM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.96%

5.2 History

The dividend of MMM decreases each year by -8.81%.
MMM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.81%
Div Incr Years0
Div Non Decr Years0
MMM Yearly Dividends per shareMMM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

MMM pays out 39.27% of its income as dividend. This is a sustainable payout ratio.
DP39.27%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
MMM Yearly Income VS Free CF VS DividendMMM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B -6B
MMM Dividend Payout.MMM Dividend Payout, showing the Payout Ratio.MMM Dividend Payout.PayoutRetained Earnings

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3M CO

NYSE:MMM (8/6/2025, 11:31:49 AM)

151.15

+1.06 (+0.71%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)07-18 2025-07-18/bmo
Earnings (Next)10-20 2025-10-20/amc
Inst Owners73.84%
Inst Owner Change0.4%
Ins Owners0.03%
Ins Owner Change2.01%
Market Cap80.51B
Analysts75.65
Price Target156.94 (3.83%)
Short Float %1.85%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 1.96%
Yearly Dividend3.63
Dividend Growth(5Y)-8.81%
DP39.27%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-23 2025-05-23 (0.73)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)5.42%
Max EPS beat(2)6.18%
EPS beat(4)4
Avg EPS beat(4)3.66%
Min EPS beat(4)0.09%
Max EPS beat(4)6.18%
EPS beat(8)8
Avg EPS beat(8)7.24%
EPS beat(12)11
Avg EPS beat(12)8.66%
EPS beat(16)15
Avg EPS beat(16)8.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)-0.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.27%
Revenue beat(12)4
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)0.26%
PT rev (1m)1.1%
PT rev (3m)2.56%
EPS NQ rev (1m)1.43%
EPS NQ rev (3m)-2.7%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)1.53%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)1.15%
Valuation
Industry RankSector Rank
PE 19.63
Fwd PE 17.91
P/S 3.27
P/FCF N/A
P/OCF N/A
P/B 18.77
P/tB N/A
EV/EBITDA 14.55
EPS(TTM)7.7
EY5.09%
EPS(NY)8.44
Fwd EY5.58%
FCF(TTM)-3.72
FCFYN/A
OCF(TTM)-1.88
OCFYN/A
SpS46.19
BVpS8.05
TBVpS-6.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.37%
ROE 91.82%
ROCE 16.1%
ROIC 13.42%
ROICexc 15.59%
ROICexgc 22.04%
OM 19.75%
PM (TTM) 16.01%
GM 41.11%
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-Score4
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 2.91
Debt/FCF N/A
Debt/EBITDA 2.05
Cap/Depr 80.94%
Cap/Sales 3.99%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.72
Quick Ratio 1.2
Altman-Z 4.06
F-Score4
WACC7.94%
ROIC/WACC1.69
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)-18.26%
EPS 3Y-7.61%
EPS 5Y-2.72%
EPS Q2Q%11.92%
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue 1Y (TTM)-13.97%
Revenue growth 3Y-11.42%
Revenue growth 5Y-5.22%
Sales Q2Q%2.31%
Revenue Next Year2.47%
Revenue Next 2Y2.63%
Revenue Next 3Y2.72%
Revenue Next 5Y3.5%
EBIT growth 1Y-11.39%
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-144.62%
FCF growth 3Y-52.23%
FCF growth 5Y-34.69%
OCF growth 1Y-116.06%
OCF growth 3Y-37.51%
OCF growth 5Y-23.78%