3M CO (MMM)
US88579Y1010 - Common Stock
Taking everything into account, MMM scores 5 out of 10 in our fundamental rating. MMM was compared to 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. Finally MMM also has an excellent dividend rating. This makes MMM very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
MMM had positive earnings in the past year.
In the past year MMM had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -13.83%, MMM is doing worse than 60.00% of the companies in the same industry.
With a Return On Equity value of -145.52%, MMM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
MMM's Return On Invested Capital of 14.08% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMM is significantly above the industry average of 7.86%.
The last Return On Invested Capital (14.08%) for MMM is above the 3 year average (14.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.83% | ||
| ROE | -145.52% | ||
| ROIC | 14.08% |
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 Operating Margin of 17.66%. This is amongst the best in the industry. MMM outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of MMM has declined.
The Gross Margin of MMM (43.77%) is better than 100.00% of its industry peers.
MMM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.66% | ||
| PM (TTM) | N/A | ||
| GM | 43.77% |
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
Compared to 1 year ago, MMM has an improved debt to assets ratio.
2.2 Solvency
MMM has an Altman-Z score of 2.75. 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.
With an excellent Altman-Z score value of 2.75, MMM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
MMM has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as MMM would need 3.17 years to pay back of all of its debts.
The Debt to FCF ratio of MMM (3.17) is better than 90.00% of its industry peers.
A Debt/Equity ratio of 3.10 is on the high side and indicates that MMM has dependencies on debt financing.
The Debt to Equity ratio of MMM (3.10) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.81
WACC7.76%
2.3 Liquidity
MMM has a Current Ratio of 1.07. This is a normal value and indicates that MMM is financially healthy and should not expect problems in meeting its short term obligations.
MMM has a Current ratio (1.07) which is comparable to the rest of the industry.
A Quick Ratio of 0.76 indicates that MMM may have some problems paying its short term obligations.
MMM has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MMM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.51%.
MMM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.53% yearly.
The Revenue has decreased by -4.52% in the past year.
The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)-8.51%
EPS 3Y1.83%
EPS 5Y-1.53%
EPS growth Q2Q6.14%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.05%
Revenue growth Q2Q-0.82%
3.2 Future
MMM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.16% yearly.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y-16.2%
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%
EPS Next 5Y6.16%
Revenue Next Year-18.65%
Revenue Next 2Y-11.92%
Revenue Next 3Y-7.08%
Revenue Next 5Y5.44%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.89, which indicates a very decent valuation of MMM.
MMM's Price/Earnings ratio is a bit cheaper when compared to the industry. MMM is cheaper than 70.00% of the companies in the same industry.
MMM is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.80, the valuation of MMM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMM indicates a rather cheap valuation: MMM is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. MMM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMM is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MMM is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
MMM has a very decent profitability rating, which may justify a higher PE ratio.
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. Dividend
5.1 Amount
MMM has a Yearly Dividend Yield of 6.60%, which is a nice return.
MMM's Dividend Yield is rather good when compared to the industry average which is at 6.96. MMM pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, MMM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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 Years19
Div Non Decr Years19
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.
MMM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-47.33%
EPS Next 2Y-9.1%
EPS Next 3Y-4.67%
3M CO
NYSE:MMM (4/25/2024, 4:53:21 PM)
After market: 91.8 +0.39 (+0.43%)91.41
-0.61 (-0.66%)
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 Cap50.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 9.89 | ||
| Fwd PE | 11.8 | ||
| 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 | -13.83% | ||
| ROE | -145.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.66% | ||
| PM (TTM) | N/A | ||
| GM | 43.77% | ||
| 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.76 | ||
| 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)
Growth
EPS 1Y (TTM)-8.51%
EPS 3Y1.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y0.51%
Revenue growth 5Y
Revenue growth 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