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3M CO (MMM) Stock Fundamental Analysis

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

152.94  -1.03 (-0.67%)

After market: 152.94 0 (0%)

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 has a great profitability rating, there are some minor concerns on its financial health. MMM is valued correctly, 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 positive operating cash flow in the past year.
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.
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

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.
MMM has a Return On Invested Capital of 13.70%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 RankSector 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%
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

With an excellent Profit Margin value of 17.79%, 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 Profit Margin of MMM has grown nicely.
MMM's Operating Margin of 20.46% is amongst the best of the industry. MMM outperforms 83.33% of its industry peers.
MMM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 41.21%, MMM belongs to the top 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 RankSector 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%
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

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
Compared to 5 years ago, MMM has less shares outstanding
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

MMM has an Altman-Z score of 3.92. This indicates that MMM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMM (3.92) is better than 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.
Looking at the Debt to Equity ratio, with a value of 2.76, MMM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.76
Debt/FCF N/A
Altman-Z 3.92
ROIC/WACC1.41
WACC9.75%
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

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.
A Quick Ratio of 1.25 indicates that MMM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, MMM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.25
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 -22.67%.
The Earnings Per Share has been decreasing by -2.72% on average over the past years.
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

The Earnings Per Share is expected to grow by 4.70% on average over the next years.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-2.84%
EPS Next 2Y2.7%
EPS Next 3Y5.08%
EPS Next 5Y4.7%
Revenue Next Year1.36%
Revenue Next 2Y2.17%
Revenue Next 3Y2.55%
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.
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.
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

A Price/Earnings ratio of 20.47 indicates a rather expensive 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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 18.17, which indicates a rather expensive current valuation of MMM.
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.
When comparing the Price/Forward Earnings ratio of MMM to the average of the S&P500 Index (21.90), we can say MMM is valued inline with the index average.
Industry RankSector Rank
PE 20.47
Fwd PE 18.17
MMM Price Earnings VS Forward Price EarningsMMM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

MMM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMM is cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.11
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 2Y2.7%
EPS Next 3Y5.08%

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4

5. Dividend

5.1 Amount

MMM has a Yearly Dividend Yield of 1.94%.
MMM's Dividend Yield is a higher than the industry average which is at 6.10.
Compared to an average S&P500 Dividend Yield of 2.42, MMM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.94%

5.2 History

The dividend of MMM decreases each year by -8.81%.
MMM has paid a dividend for at least 10 years, which is 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

35.38% of the earnings are spent on dividend by MMM. This is a low number and sustainable payout ratio.
DP35.38%
EPS Next 2Y2.7%
EPS Next 3Y5.08%
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 (7/3/2025, 7:50:24 PM)

After market: 152.94 0 (0%)

152.94

-1.03 (-0.67%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)04-22 2025-04-22/bmo
Earnings (Next)07-24 2025-07-24/amc
Inst Owners73.84%
Inst Owner Change5.63%
Ins Owners0.03%
Ins Owner Change4.95%
Market Cap82.31B
Analysts75.65
Price Target155.24 (1.5%)
Short Float %1.92%
Short Ratio3.27
Dividend
Industry RankSector Rank
Dividend Yield 1.94%
Yearly Dividend3.63
Dividend Growth(5Y)-8.81%
DP35.38%
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)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)1.75%
PT rev (3m)-1.83%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-2.84%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.34%
Valuation
Industry RankSector Rank
PE 20.47
Fwd PE 18.17
P/S 3.36
P/FCF N/A
P/OCF 84.59
P/B 18.44
P/tB N/A
EV/EBITDA 14.11
EPS(TTM)7.47
EY4.88%
EPS(NY)8.42
Fwd EY5.5%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)1.81
OCFY1.18%
SpS45.55
BVpS8.29
TBVpS-5.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 3.92
F-Score7
WACC9.75%
ROIC/WACC1.41
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-2.84%
EPS Next 2Y2.7%
EPS Next 3Y5.08%
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 Year1.36%
Revenue Next 2Y2.17%
Revenue Next 3Y2.55%
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%