3M CO (MMM) Stock Fundamental Analysis
NYSE:MMM - New York Stock Exchange, Inc. - US88579Y1010 - Common Stock - Currency: USD
Taking everything into account, MMM scores 5 out of 10 in our fundamental rating. MMM was compared to 6 industry peers in the Industrial Conglomerates industry. MMM scores excellent on profitability, but 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.
1. Profitability
1.1 Basic Checks
In the past year MMM was profitable.
In the past year MMM had a positive cash flow from operations.
Of the past 5 years MMM 4 years were profitable.
Each year in the past 5 years MMM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.92%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 97.69%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.70%, MMM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MMM is above the industry average of 7.97%.
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 Profit Margin of 17.79%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of MMM has grown nicely.
With an excellent Operating Margin value of 20.46%, MMM belongs to the best of the industry, outperforming 83.33% 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.
With an excellent Gross Margin value of 41.21%, MMM belongs to the best 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 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.
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 3.95. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
MMM has a better Altman-Z score (3.95) than 100.00% of its industry peers.
A Debt/Equity ratio of 2.76 is on the high side and indicates that MMM has dependencies on debt financing.
MMM has a Debt to Equity ratio of 2.76. This is in the better half of the industry: MMM outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.95 |
ROIC/WACC1.68
WACC8.16%
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 belongs to the top of the industry, outperforming 83.33% 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.
With an excellent Quick ratio value of 1.25, MMM belongs to the best of the industry, outperforming 83.33% of the companies in the same 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%.
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.
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
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.70% yearly.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
EPS Next 5Y4.7%
Revenue Next Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
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
MMM is valuated rather expensively with a Price/Earnings ratio of 20.89.
100.00% 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 27.18. MMM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.49, the valuation of MMM can be described as rather expensive.
MMM's Price/Forward Earnings ratio is rather cheap when compared to the industry. MMM is cheaper than 83.33% of the companies in the same industry.
MMM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMM indicates a somewhat cheap valuation: MMM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.43 |
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 2Y2.85%
EPS Next 3Y5.18%
5. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.68, MMM pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, MMM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
5.3 Sustainability
MMM pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
DP35.38%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
NYSE:MMM (7/16/2025, 10:36:10 AM)
156.06
-0.53 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners73.84%
Inst Owner Change-0.01%
Ins Owners0.03%
Ins Owner Change4.95%
Market Cap83.99B
Analysts75.65
Price Target155.24 (-0.53%)
Short Float %1.97%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend3.63
Dividend Growth(5Y)-8.81%
DP35.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0%
PT rev (3m)-2.37%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0.38%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.49 | ||
| P/S | 3.43 | ||
| P/FCF | N/A | ||
| P/OCF | 86.32 | ||
| P/B | 18.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.43 |
EPS(TTM)7.47
EY4.79%
EPS(NY)8.44
Fwd EY5.41%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)1.81
OCFY1.16%
SpS45.55
BVpS8.29
TBVpS-5.68
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 | 3.95 |
F-Score7
WACC8.16%
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-2.81%
EPS Next 2Y2.85%
EPS Next 3Y5.18%
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 Year1.46%
Revenue Next 2Y2.22%
Revenue Next 3Y2.59%
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%